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Following is the full text of the speech (English only) by the Chief Executive at the dinner for the French Prime Minister, Mr Lionel Jospin, at Government House today (Saturday):

Mr Prime Minister, Madam Jospin, distinguished guests, ladies and gentlemen,

"Bienvenue a Hong Kong!" [Welcome to Hong Kong!]

Mr Prime Minister. My French is not very good but I hope that the meaning is very clear. On behalf of all Hong Kong people, I extend our sincerest and warmest welcome to you and to Madam Jospin.

You are by no means the first French people to visit Hong Kong. I don't know if you are aware that one of the earliest Western maps of this area was produced by French mariners in the eighteenth century, using Chek Lap Kok, the site of our brand new airport, as the principal datum point. But you are certainly the most distinguished visitors from France to arrive here since the establishment of the HKSAR, and I want you to know what a great pleasure it is for me to see you here in Hong Kong. Your visit gives me the chance to reciprocate some of the kindness and hospitality that was extended to me and my colleagues during our visit to Paris in March this year.

I am glad to know that you have had fruitful meetings with President Jiang Zemin and Premier Zhu Rongji and that your state visit had been a great success. I am particularly glad to know of the warm relationship between France and China which will be instrumental in deepening the already close relationship between France and Hong Kong.

When we met in Paris, we spoke about the Asian financial turmoil and the fact that many economies in the region including Hong Kong have been experiencing painful economic adjustments brought about by unprecedented financial turmoil.

But what you will find here in Hong Kong is not a city weighed down with worry, but a city setting out with hard work and determination to weather our present troubles and put ourselves on course for happier days ahead. This is a community determined to maintain market stability; to protect our linked exchange rate; and determined to play our part to help avoid further deterioration in the current global financial crisis. We remain firmly committed to uphold our free and open market policy as well as to protect the stability and integrity of our currency and financial markets.

The Asian financial turmoil which began so inconspicuously in Thailand on July 2, 1997 has now become a global problem requiring global solution. New global financial architecture is urgently required to oversee and regulate massive global capital flow, most of which is unrelated to the conduct of normal global trade and commerce. In this respect, I am glad to note that France, China and other nations are joining hands to get on with this most important task. China is moving strongly and confidently forward. Much of the rest of Asia is undergoing difficult economic adjustments but I am sure that after a number of years of pain, Asia will resume the past of growth and prosperity. In this respect, Hong Kong is strategically located for French business who wish to take part in the economic activities in China and the rest of Asia.

Over the years, we in Hong Kong have enriched our vision by many ideas and cultural contacts that we have had with France and by business partnerships that we have established with you. Like you, we understand that business flourishes best within a sound legal framework and against a background of a sense of common purpose in the community.

France and Hong Kong have a close relationship, and I look forward to seeing it grow and prosper. You are our 10th largest trading partner. Your presence in the SAR is significant - the Alliance Francaise; an international school, and some 450 companies, about 100 of which have established their regional headquarters or regional offices here in Hong Kong. They are active in many sectors, especially trading and finance, where more than 15 French banks or bank-related companies find plenty to do here in Hong Kong. I am sure that with the advent of the Euro in 1999, their experience and expertise of the Asian market - in particular Hong Kong and the Mainland of China - will be put to good use to consolidate the Euro-Asian trade and investment partnership.

Mr Prime Minister, although your time in Hong Kong is very short, I hope you will leave with a lasting impression of a vibrant community which is determined to ride out these current difficulties and emerge stronger and wiser for the experience. I hope, also, that you take back to France with you a strong belief that Hong Kong is not standing still, but moving forward to reinforce our position as Asia's premier international business city, a city of flair and imagination in which the men and women of France will always find welcome.

Before I close, as a soccer fan I must also offer my belated congratulations on behalf of Hong Kong for the fantastic French victory in the World Cup. I attended the French National Day celebration the day after the win and I can tell you it was a very spirited occasion, and one which I know did a tremendous amount of good for the champagne importers of Hong Kong.

Mr Prime Minister, I extend once again to you, and to all French people, an open invitation to visit our home, to experience our hospitality and to forge an even greater partnership than that which we already know, and we deeply value. Thank you very much.

End/Saturday, September 26, 1998

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