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

The following is the full text of the Lunar New Year message delivered by the Chief Executive, Mr Tung Chee Hwa, today (Monday):

Spring has arrived ushering in a new year. During these Lunar New Year holidays, we should all take a break from our busy daily lives to spend time with our loved ones. Spring is a season of freshness, a season of hope. After the holidays, I am sure that in our typical Hong Kong way, we will all be back at work striving for a better tomorrow.

I remember when I first came to Hong Kong from Shanghai, just like other kids, I looked forward eagerly to the Lunar New Year. As a child, that meant new clothes, red packets and firecrackers. I remember those happy days with warm feelings.

Fifty years ago, Hong Kong was a much different place. Life was hard and jobs were not easy to come by. My parents and many of their contemporaries had to struggle to get their businesses started. I was too young then to understand the hardships they faced, and it was only much later that I came to appreciate the sacrifices they had made. However, with a firm belief in themselves, a strong drive and determination to succeed, many people overcame the challenges. This is the Hong Kong story. We have always learned from experience. Despite the present economic downturn, I am confident we will emerge in much better shape, provided we remember our strengths, build on them and focus on sharpening our competitive edge.

It has been 20 months since our reunification. For Hong Kong, the implementation of the principle of 'one country, two systems' and the fight against the financial turmoil are both unprecedented challenges. As a Government, we have done a good deal to address those challenges. The Central Government has always been fully supportive of Hong Kong. They are genuinely concerned about our stability and prosperity and we can always feel their care and concern for us. I have also been in close contact with international financial leaders and am pleased to learn they have remained positive about our economic prospects. They have been reassured by our actions during these hard times. The economy of the Mainland has been enjoying steady growth, which is beneficial to us. As well, in recent months, there have been positive signs of stability in some of the Asian economies. If this trend continues, it will help speed up our recovery.

As we approach the 21st century, we will all want our economy to show steady growth and to see our children enjoy a better quality of life. To achieve this, we must push ahead with education, innovation and technology to create a knowledge-based society. The Government is committed to investing in the improvement of our human resources. We will also continue with our efforts to fulfill our long-term goals in improving other social services.

With the challenges we face, we must remain united and work towards our common goals. With the undoubted drive, initiative and the talents of our people, I believe we can clear all obstacles and forge ahead into a brighter future.

Betty and I wish all of you good health, good luck and a prosperous new year.

END/Monday, February 15, 1999

NNNN