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Following is the transcript of the media session by the Chief Executive, Mr Tung Chee Hwa, this (Friday) afternoon:

The Court of Final Appeal has made a very important decision today. The SAR Government welcomes and respects that judgment. Today's judgment will enable all parties concerned to come to a fuller understanding of the original judgment. This judgment fully reflects that we have the ability to make "Hong Kong people ruling Hong Kong" and "one country, two systems" a great success. Our system of rule of law is complete and intact.

I wish to emphasise once again the Government has decided that it should apply to the court for clarification of certain parts of its decision given on 29 January 1999, because of these very exceptional circumstances and public interest that has been generated in the relevant issues and their constitutional importance. We were not applying for a rehearing or seeking to overturn the original judgment. The original judgment remains intact. In this exceptional situation, the Court has taken the exceptional course under their inherent jurisdiction.

The SAR Government firmly believes that all parties concerned, including SAR courts, will always abide by the Basic Law in exercising their powers and discharging their functions. The Court of Final Appeal's decision today has made that position very clear.

In dealing with this issue, the Secretary for Justice has provided very useful and important advice to the Government.

The SAR Government fully respects the judicial independence. We remain confident that under the Basic Law and "one country, two systems", our constitutional system is sound and well established.

Earlier on today this afternoon I met the chief executives of seven international companies who have announced plans to expand their operations in Hong Kong. These companies are all involved in the field of science and technology.

The Hong Kong SAR Government has been very determined to push ahead with innovation and with technology, very determined to make Hong Kong into a knowledge-based city. Our aim is to promote economic and value-added activities and to strengthen Hong Kong's competitiveness. The Commission on Innovation and Technology, under the leadership of Professor Chang-lin Tien, has done a lot in these areas and has really made very very good proposals.

I am pleased to learn that these seven companies have decided to expand their operations here. I believe their new commitment shows that our effort is now paying off. Let me tell you, this is only the first step because I firmly believe many other companies will respond and some may respond very shortly.

We will continue to create a favourable investment environment, build up a critical mass of technological experts and venture capitalists, and encourage the development of a significant cluster of technology-based businesses.

We will also seek to help our traditional industries to upgrade their products and services through technology application.

Finally, I would like to take this opportunity to thank Professor Tien for his valuable efforts and contributions.

Thank you very much. I am really very very late. I am afraid we are not going to be able to answer any questions, but I know my colleagues will be ready later on.

END/Friday, February 26, 1999

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