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Hong Kong has experienced a seamless transition in its reunification with China and the people of Hong Kong are looking forward to a brighter future in the next millennium, said the Director of the Hong Kong Economic and Trade Office (HKETO) in Singapore, Mr Thomas Tso, today (Wednesday, July 1).

Addressing a reception in Singapore for some 1,000 guests to mark the first anniversary of the establishment of the Hong Kong Special Administrative Region (HKSAR) of the People's Republic of China, Mr Tso said the guiding principle of "one country, two systems" had been put into practice and was firmly in place.

Noting that Hong Kong had had an eventful and challenging year, Mr Tso however said the primary concern remained with the area of economy, in particular the financial turmoil in Asia and its knock-on effects on Hong Kong.

The economic downturn towards the end of last year has led Hong Kong into a period of major economic adjustment. As a result, the people have started focusing on the need to improve productivity.

"All these will ensure that Hong Kong will maintain and further improve its competitive edge in the years to come," Mr Tso said.

Mr Tso cited concrete reasons for the people of Hong Kong to be bullish about the future.

"Hong Kong's economic fundamentals are sound.

"Years of prudent financial management has landed us on a solid platform. We have the third largest foreign exchange reserves in the world, with no external debt.

"Together with our renowned institution of free enterprise and pro-business infrastructure, we are confident that Hong Kong has the strengths to ride out the storm and emerge stronger."

Mr Tso pointed out that the recent events had also brought into focus the inter-dependence between Hong Kong and ASEAN.

Hong Kong, being a major international business and financial centre, will continue to play its part by maintaining the stability of the Hong Kong dollar through the linked exchange rate with the US dollar and will carry on its role in facilitating trade and investment flow in the region, Mr Tso added.

Mr Tso believed that with the will, ability and determination to press ahead, the whole of Asia would soon be able to be back on its feet.

The cocktail reception is part of the activities organised by the HKETO to celebrate the first anniversary of the establishment of the HKSAR. A Mini Hong Kong fair will be held at the Singapore International Convention and Exhibition Centre between July 2 and 5 to feature the lifestyle in Hong Kong.

To commemorate the opening of the new Hong Kong International Airport on Monday (July 6), an exhibition will be mounted at the same venue to highlight the key features of the airport project.

End/Wednesday, July 1, 1998

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