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Following is the transcript of a media session given by the Chief Executive, Mr Tung Chee Hwa, after his meeting with the New Zealand Prime Minister, Mrs Jenny Shipley, in Wellington today (Thursday):

Mrs Shipley: New Zealand and Hong Kong have very important relationships together and are also important countries in terms of our common view on APEC issues and I have been able to both learn a lot and hear what Hong Kong's objectives are within the APEC context. The most important thing from New Zealand's point of view is that today we have been able to agree and announce that there will be a visa waiver between New Zealand and Hong Kong and I look forward to welcoming both business and tourist people to New Zealand. We think that it will be a great benefit for both of our countries. Mr Tung.

Mr Tung: I am delighted to be here in New Zealand to have the opportunity to talk to the Prime Minster. New Zealand and Hong Kong share a great deal in common, as the Prime Minister said, particularly in the work within APEC, the WTO. We are all very important communities within the Asia-Pacific region. Today, I am particularly delighted to learn from the Prime Minister of the decision to grant Hong Kong citizens visa-free travel to New Zealand and this is very important not only from the point of view of promoting trade, investment and mutual visits but also a very good confidence booster for Hong Kong. I am delighted with the news. I also had a chance to exchange views with the Prime Minister on the issues that are mutually concerned in so far as the Asian financial turmoil is concerned. I also had the opportunity to explain to the Prime Minister about how well Hong Kong is moving forward under the "One Country, Two Systems".

Question: (From RTHK reporter to Mrs Shipley on why visa-free was granted).

Mrs Shipley: Well, we believe that both the business and tourism relationship between the people of Hong Kong and the people of New Zealand is very well established. We looked very closely at the benefits and the risks, those that there may be to our countries, and we believe the benefits far exceed any risks and so we have proceeded in that regard.

Question: (NZ reporter to Mr Tung) Is it your view that the Asian crisis is going to get a lot worse before it gets better?

Mr Tung: Well I think we have gone through a lot now over the last seven, eight months. I am glad to see that the Japanese Yen rebounded yesterday under strong intervention. The key now is for Japan to really move forward because Japan is the second-largest economy in the world. The revitalisation of the Japanese economy and the stability of the Yen will have a great deal of impact on all of us.

End/Thursday, June 18, 1998

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