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The Chief Executive, Mr Tung Chee Hwa, said this (Tuesday) evening that the Government needs to review the relationship between the executive and legislature in a bid to make improvements.

Speaking during a meeting with a number of Legislative Councillors and representatives of the Frontier, Mr Tung said the fact that the executive had no representation in the legislature under the present system would inevitably affect the formulation and implementation of policies.

Mr Tung exchanged views with members on a wide range of financial and economic issues. He also analysed the economic challenges facing Hong Kong.

"The present economic adjustment is very important," he said. "Stabilised property prices and the downward adjustment in wages will help enhance our competitiveness. We can expect a faster recovery of the economy if interest rates come down and stabilise. This in turn will provide more job opportunities and ease unemployment. In other words, the ultimate solution to the unemployment problem is economic recovery."

"I have maintained close contact with international business and financial leaders in order to have a better grasp of the current global economic climate. I also explain to them the purpose of our policies, in particular those implemented and being planned for the financial markets."

Mr Tung told members that unity in our community would help us overcome our challenges. "We attach much importance to how people overseas view our measures for the financial markets. Therefore, the Government needs greatly the support of Legislative Councillors."

On Frontier members' view on the performance of the Government, Mr Tung stressed : "The SAR Government is a responsible government. We have the courage to face problems, admit mistakes and make improvements. Members of the public will judge us over a wide range of issues. I believe the structure of the Government is sound and we are committed to our people."

"I keep in touch with people from all walks of life in order to learn more about their expectations of the Government and their views on our policies," he added.

On political reforms and direct elections, Mr Tung said : "The Basic Law has set down clearly the arrangement for constitutional development. Our priority now is to improve the economy and help residents tide over their difficulties. Meanwhile, we will uphold the rule of law and safeguard all the freedoms we enjoy."

End/Tuesday, September 15, 1998

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