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The Chief Executive, Mr Tung Chee Hwa, said today (Monday) that the Government will seek actively to improve Hong Kong's business environment and step up promotional activities overseas.

"Hong Kong must retain the special features of a cosmopolitan city in order to attract foreign investment as well as tourists," he said.

Mr Tung stressed that the Government would seek to improve the English standard of Hong Kong people, which was one of the prerequisites for Hong Kong to become the leading cosmopolitan city of Asia.

"I hope the business sector will take part in initiating and organising activities to encourage employees to improve their written and spoken English," he said.

The Chief Executive said the above at separate meetings with Legislative Councillors of the Liberal Party and the breakfast group this evening to exchange views with them on matters of concern.

On the business environment for small and medium enterprises (SMEs), Mr Tung said that he had kept a close watch on the progress of the special finance scheme for SMEs. Recently he met a group of SME operators, some of whom were successful in joining the scheme and some not, to collect their views on the scheme.

He said the Industry Department was reviewing the scheme. "SMEs are a major pillar of Hong Kong's economy. We hope to consider the future development of SMEs from a long term point of view.

"The effect of the financial turmoil is temporary. We have to resolve not only the short term problems of SMEs, but also consider how we can best utilise resources to assist them in the medium and longer term. The Government and the business sector should join hands to create an environment which is conducive to the further development of SMEs to meet the challenge of the new century," the Chief Executive said.

As for the CSSA review, Mr Tung said that public opinon generally agreed with the direction proposed. He said, "The Government will continue to explain our view to the public and will carefully consider the details for implementing the proposed measures to ensure that they will receive the general support of the community."

Responding to a question regarding discussion between the SAR and the Central Government on rendition arrangement, Mr Tung said he understood the community's concern about the issue.

"In view of the close economic relationship between the SAR and the Mainland, there is considerable urgency for us to discuss the issue with the Central authorities. Both sides will seek actively to arrive at the best arrangement. This will in turn help our efforts in law enforcement," he said.

The Chief Executive also discussed with the Legislators on ways to enhance cooperation between the Administration and the Legislative Council. Mr Tung said, "Government officials have always sought to foster mutual trust and step up communication with Legislative Councillors with a view to best serving the community."

End/Monday, January 4, 1999

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