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The Chief Executive, Mr Tung Chee Hwa, today (Tuesday) met representatives of the Democratic Alliance for the Betterment (DAB) of Hong Kong and exchanged views with them on issues of public concern such as the economy and people's livelihood.

On stepping up assistance for the Small and Medium Enterprises (SMEs), the Chief Executive said that recently he met groups of SME operators to learn more about their views on the Special Finance Scheme for SMEs.

He said the Government had already extended $500 million in loans from the $2,500 million-scheme to successful applicants. Mr Tung added that the Industry Department was reviewing the scheme and was considering, in conjunction with SMEs and the banking sector, ways to improve the long-term business environment for SMEs.

On the resumption of land auction, Mr Tung said, "The Government is actively reviewing the market condition and keeping a vigilant eye on developments in the property market. We will make a decision when the time is right."

"The Government's priority is to stabilise the property market and ensure that there will not be sharp fluctuations in property prices," he said.

The meeting also discussed the development of Chinese medicine. Mr Tung said, "Hong Kong is well-positioned to facilitate the commercialisation, standardisation and internationalisation of Chinese medicine. Of course, it will require people in the field to make a more conscious effort to advocate Chinese medicine to the community."

Turning to the quality of potable water, the Chief Executive said, "I fully appreciate the DAB's concern. The quality of potable water is of direct concern to residents. The Government has the responsibility to ensure that Hong Kong's potable water is safe for consumption."

"In order to improve water quality, the Guangdong authorities have moved the river intake on the Dongjiang River further upstream. Meanwhile, the construction of a closed aqueduct to prevent the current en-route pollution has already begun," he added.

Mr Tung said he understood that the Guangdong authorities had designated Dongjiang River as a major protected river in the Province and focused their efforts to maintain and improve the quality of Dongjinag water. There was at present no plan to allocate huge funds to develp a separate water intake system.

The Chief Executive said that he and the relevant Bureau Secretaries would follow up on the matters of concern raised by DAB.

End/Tuesday, January 5, 1999

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