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The Chief Executive, Mr Tung Chee Hwa, said today (Saturday) that the Bank for International Settlements (BIS), with its expertise and physical presence in Hong Kong, should play an important role in strengthening the financial systems in Asia during the recovery period.

Mr Tung was speaking at a reception at Government House hosted by the BIS to mark the opening in Hong Kong of its Representative Office for Asia and the Pacific.

The Chief Executive described BIS' decision to move beyond its headquarters in Basle, Switzerland, as "an important step for it in order that it could better serve the Asian region".

"The timing of this BIS initiative is very fortuitous because Asia is facing a very challenging time after the havoc with the Asian currency crisis over the past 12 months.

"I am pleased that BIS is here to represent global interests in Asia," he said.

While noting that the affected economies were undergoing a period of painful adjustment and consolidation, Mr Tung said that he would expect Asia to come out leaner and stronger after the adjustments, given their indomitable spirit to improve themselves.

"The fundamentals in Asia still remain. We still have innovative entrepreneurs, a hard working and flexible workforce, a very high savings rate, and openness to trade and ideas," he said.

"Hence, we are not seeing the end of the Asian miracle but the beginning of the Asian recovery in the new millennium."

"To do this," Mr Tung stressed, "we will have to have the support, cooperation and understanding of our friends from Europe and America."

The BIS' Representative Office in Hong Kong is its first overseas office and will serve to strengthen its cooperation with central banks and monetary authorities in the region. The establishment of this Office reinforces Hong Kong's status as a leading international financial centre and will be an important milestone in the development of the SAR's relationship with the BIS.

End/Saturday, July 11, 1998

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