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Following is the full text of the speech by the Chief Executive, Mr Tung Chee Hwa, at the dinner hosted for the President of the Republic of Korea, Mr Kim Dae Jung, at Government House today (Thursday):

Mr President, Mrs Kim, distinguished guests, ladies and gentlemen,

It is a great honour and pleasure to welcome you, Mr President and Mrs Kim on this historic visit to Hong Kong - the first by a serving President of the Republic of Korea. I know of your busy schedule and, therefore, we are particularly honoured that you should choose to stop by Hong Kong this time. You and I did have a chance to talk in the past few days during the APEC Economic Leaders Meeting in Malaysia. But I am delighted to be able to take that dialogue forward here in Hong Kong. On behalf of all Hong Kong people, I extend our warmest welcome to you and to Mrs Kim.

Mr President, the Asian region, including Korea and Hong Kong, has suffered substantial economic and social pain over the past 16 months, as a result of the financial turmoil. We in Hong Kong speak from personal experience when we say we understand and sympathise with the pain and economic hardship the people of your country are now enduring.

Mr President, I have watched from afar with great admiration and, sometimes, amazement how you had personally overcome what seemingly at times insurmountable difficulties and endured enormous hardship in the past 40 years before you became the President of the Republic of Korea. I am confident your country will, with that strength of character as you have exhibited as well as your capable leadership, successfully overcome the present difficulties. As the 21st century unfolds, the Republic of Korea will march forward with confidence to become one of the leading industrialised nations in Asia.

Recent events on the economic front in Asia are encouraging. This week's APEC meeting has maintained the momentum for international cooperation. In particular, there is firm determination amongst APEC Economic Leaders to work together to support an early and sustained recovery in the region, to contain the risks of contagion and prevent the possibility of a global recession. They have reinforced initiatives aired in early October by the G-22 and at the World Bank/IMF meetings in Washington, and more recently by the G-7. There is also a consensus on the importance of promoting and facilitating sustainable economic growth. I am particularly pleased with calls for urgent work to examine the questions of appropriate transparency and disclosure standards for hedge funds and other private sector financial institutions involved in international capital flows. It is also heartening to note a common understanding that we must move forward in many of the economies that have been affected with a reform of the banking system, better banking supervision, of better corporate governance, and of well thought-through macro-economic policies.

Mr President, your visit to Beijing and Shanghai last week was a great success. Korea and China are committed to turn a very important relationship into a bilateral cooperative partnership geared to the 21st century. I hope that Hong Kong will continue to play an important role in your trade and investment with the Mainland.

Mr President, Hong Kong and the Republic of Korea have many close ties upon which to build an even more prosperous relationship in the next century. The Republic of Korea is one of our most important trading partners - in 1997, Korea was our seventh-largest, while we were your fourth-largest. I am happy to note that the Hong Kong-Korea relationship has recently taken another step forward with the signing of a Mutual Legal Assistance Agreement and the mutual extension of visa-free period. The Mutual Legal Assistance Agreement signifies our joint commitment to fighting international crime and to continued close cooperation in matters of criminal justice and international law enforcement. The mutual extension of visa-free period will surely be beneficial to trade, business, investment and tourism between our two places.

Mr President, while Asia has suffered substantial economic and social pain over the past 16 months, it has not been pain in vain. In fact it marks a new beginning, a new opportunity, for us all to divest ourselves of inefficiencies, to rebuild and restructure as we approach the dawning of a new century. Asia's success since the Second World War has been built on hardwork, on thrift and on the sheer determination of all of our people to move ahead. These same qualities are still here. Together with the vast market potential and high savings, I am sure Asia will soon resume its march towards prosperity.

Thank you very much.

End/Thursday, November 19, 1998

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Photo caption: The Chief Executive, Mr Tung Chee Hwa, hosted a banquet in honour of the visiting President of the Republic of Korea, Mr Kim Dae-jung at Government House this (Thursday) evening. Photograph shows Mr Tung (left) welcoming Mr Kim at Government House.

Photo caption: Mr Kim Dae-jung, flanked by Mr and Mrs Tung and Mrs Kim (third from right), signing the visitors' book after arrival.