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Hong Kong is determined to become the premier international city in Asia in the 21st Century, the Chief Executive, Mr Tung Chee Hwa, yesterday (Friday) told World Economic Forum (WEF) delegates in Davos.

Mr Tung said the foundations had been laid over the past 18 months to steer Hong Kong out of the current economic downturn and to position the SAR as the best place in Asia for business and trade.

He said Hong Kong must continue to build on its traditional strengths in financial services, tourism, manufacturing services, sea and air transport and as Asia's most important hub for multi-national corporations.

Speaking at a WEF session 'Hong Kong: Turning the Tide', the Chief Executive said: "We need to make sure that we attract the best talents and the best quality people to live and work in Hong Kong.

"We need to make sure the quality of life is as good as anywhere else.

"We will spare no efforts in lifting our skills to new levels, to improve our language skills in English and Chinese.

"We are determined to develop as a centre for the arts and culture. We will step up efforts to protect the environment.

"We will make sure that Hong Kong is truly an attractive place - that it will be the premier international city in Asia."

Mr Tung said Hong Kong would also build on its unique role as China's pre-eminent gateway for international investment, trade and business.

For example, Hong Kong could play an important role as a financial centre in issuing quality debt paper or raising capital as the Mainland economy continued to open up and expand.

Mr Tung said in the short-term, a raft of economic stimulus measures introduced by the HKSAR Government over the past year would start to work their way through in 1999.

He said the US$30 billion to be spent on major infrastructure programmes over the next five years was a 'huge commitment' to the future of Hong Kong.

"Such programmes are possible because of years and years of prudent fiscal management. We have got over US$50 billion in fiscal reserves and no debt," he said.

"All of this is paving the way for solid growth in the future and for a strong and robust recovery.

"No other economy in Asia has been able to do what Hong Kong has done."

Mr Tung said the significant drop in property prices, downward adjustments in wages, lower business costs, low inflation and a stable currency were enhancing Hong Kong's international competitiveness and making it a more attractive city in which to invest and do business.

He said that since Hong Kong was a free market economy, it would continue to allow market forces to determine wage and salary levels to enable the SAR to adjust to prevailing economic conditions.

Joining Mr Tung on the podium for the Hong Kong session were Hong Kong Trade Development Council chairman Dr Victor Fung and Citigroup Inc Vice-chairman Deryck Maughan.

The one-hour session covered a wide range of topics including the banking sector, Hong Kong's huge off-shore manufacturing base, the linked exchange rate, political development in the SAR, general aviation and the real estate market.

In a full day of engagements, the Chief Executive attended a World Economic Brainstorming session with other political leaders and more than 100 of the world's business elite.

At a Hong Kong 'networking' dinner attended by more than 130 people, Mr Tung reinforced his vision for Hong Kong as the most important world city in Asia.

Mr Tung also took part in a plenary meeting of the HK/EU - EU/HK Business Co-operation Committee meeting. He also attended a WEF reception hosted by Australian Foreign Minister Alexander Downer.

The Chief Executive held bilateral meetings with US Assistant Secretary of State for East Asian and Pacific Affairs Stanley Roth, former Speaker of the US Congress Newt Gingrich, US Deputy Secretary for the Treasury Larry Summers, and Governor of New Jersey Christine Whitman.

End/Saturday, January 30, 1999

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Photo caption: Caption: The Chief Executive, Mr Tung Chee Hwa, joins other speakers on the podium for a World Economic Forum session "Hong Kong: Turning the Tide" in Davos today (Friday).