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The Chief Executive, Mr Tung Chee Hwa, said today (Wednesday) that the Government will seek to stimulate the economy and spend prudently when formulating policies at a time when the economy is slowing down.

At a meeting with Chairmen of the Provisional Urban and Regional Councils, and the Provisional District Boards, Mr Tung said that the Government would join hands with members of the public to tide over this difficult period. He also exchanged views with the Chairmen on a number of issues of concern to the people.

The Chief Executive said that Hong Kong's economic base had been narrow and our economy had undergone drastic changes as a result of the Asian fianncial turmoil.

"To stimulate the economy, we will look into ways to expand our economic base and the types of value added economic activities to be developed. It is obvious that labour intensive industries are no longer our advantage," he said.

Noting that a preliminary report by the Commission on Innovation and Technology, chaired by Professor Tian Changlin, will be ready this month, Mr Tung hoped that there would be some indications on the direction for industrial development.

In reply to the Chairmen's questions about the progress of the Review on District Organisations, Mr Tung said the Government would carefully and seriously consider the views expressed by people from different sectors.

"We hope that in forming a view on this issue, Hong Kong people will take into consideration the interest of the community as a whole. We understand fully that sometimes our policy may not be able to please everybody," he said.

On health matters, the Chief Executive noted that Hong Kong people's long life span and our low infant mortality were comparable to those in developed countries. The Government's spending on medical services was about five per cent of GDP and our services were generally up to world standards.

"We must not overlook the hard work and achievements of our medical staff just because of some isolated incidents. Of course, medical incidents will be thoroughly investigated so as to make improvements and and to prevent any recurrence," he said.

End/Wednesday, September 16, 1998

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