************************

Following is a speech by the Chief Executive, Mr Tung Chee Hwa, at the Reception for the celebration of the 49th Anniversary of the Founding of the People's Republic of China today (Thursday):

Ladies and gentlemen,

Today, we celebrate together the 49th Anniversary of the founding of the People's Republic of China. On behalf of the Government of the Hong Kong Special Administrative Region, I extend my warm greetings to the people of Hong Kong and our friends in offices set up by the central authorities and mainland institutions in the HKSAR. I would also like to take this opportunity to welcome cordially all the honourable consuls who join our celebration this afternoon.

This summer, while our country was forging ahead with plans and undertakings in fulfilment of the wishes of the people, it faced the test of the severest floods in a century.

We saw thousands of our compatriots and those from the People's Liberation Army join hands together to protect thousands of homes, lives and properties of the people. With unyielding determination, they built firm and solid dykes and triumphed in the fight against the cataclysm. A song of victory roared across the vast mainland and echoed with the turbulent waters.

Blood is thicker than water. The people of Hong Kong organized themselves for territory-wide relief campaigns. We joined our compatriots on the mainland in the combat against floods as well as the relief operation that followed.

This demonstrates the strong sense of affinity amongst the Chinese people.

With this sense of affinity, the Chinese culture has survived generation after generation.

With this sense of affinity, the People's Republic of China was founded forty-nine years ago, marking the beginning of a new era. Forty-nine years of struggle enable China to evolve from a destitute country into a powerful state with great achievements widely recognized throughout the world . The Chinese people enjoy political stability and lead a peaceful and happy life. In the international arena, China plays an increasingly important role. As Chinese, we all take pride in the remarkable success of our country.

With this sense of affinity, we are fully confident that our rich and long-standing civilization will continue to thrive in the next century.

In October last year, Hong Kong was under the attack of an immense financial turmoil. The damages inflicted upon our economy are unprecedented. The people of Hong Kong are all facing the greatest difficulties and challenges we have never had in recent decades. However, no matter what difficult predicament we are confronted with, I strongly believe that with determination, tenacity and solidarity, we will definitely overcome all the difficulties brought about by the financial turmoil and counteract the adverse effects of a bubble economy. We will definitely enhance our competitiveness and put ourselves on the track of economic revival.

Every time when we are confronted with difficulties, the Central People's Government and our mainland compatriots always support us with great encouragement and assistance. On July 1 this year, we were filled with great joy to have President Jiang Zemin come to Hong Kong to celebrate with us the first anniversary of the establishment of the Hong Kong Special Administrative Region. We also felt deeply the unreserved support and great care of our motherland. With its staunch support, we are fully confident that we are able to weather the storms and remain determined to implement fully the great concept of 'one country, two systems' and to build a brighter future for Hong Kong.

Now, may I invite Vice-Chairman Ann Tze-kai, Vice-Chairman Fok Ying-tung, Mr Jiang Enzhu, Director of the Hong Kong Branch of the Xinhua News Agency, Mr Ma Yuzhen, Commissioner of the Ministry of Foreign Affairs of the People's Republic of China in the HKSAR, Lieutenant Liu Zhenwu, Commander of the PLA Garrison in Hong Kong, the colleagues of the HKSAR Government and our guests here to join me in a toast to the well-being of our motherland, the prosperity and stability of Hong Kong and the excellent health of our guests here.

End/Thursday, October 1, 1998

NNNN

Photo caption: The Chief Executive, Mr Tung Chee Hwa, accompanied by major officials of the Hong Kong Special Administrative Region, proposes a toast to the guests at a cocktail reception today (Thursday) to celebrate the National Day.