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Following is the opening statement by the Chief Executive, Mr Tung Chee Hwa, at a media session today (Tuesday):

I have convened today's press conference to announce that I have invited Mrs Anson Chan to extend her service with the Hong Kong Special Administrative Region Government as the Chief Secretary for Administration until June 30, 2002. I am delighted that Anson has accepted this invitation.

After I was selected as the Chief Executive in the later part of 1996, in the process of forming the slate of principal officials for the HKSAR Government, one of my fundamental considerations was to work for the stability of the Government and our community. Hong Kong's reunification with China was a major historical development. "One Country Two Systems" was an entirely new endeavour, our ability to preserve stability was critical to Hong Kong's continued success and prosperity. On this basis, I decided then that all eligible serving principal officials should be appointed to their original posts. This was not a move of political expediency. It has always been my thinking that we should maintain stability at the top echelon of the HKSAR Government, so that we can keep a consistent direction for Hong Kong's future developments. Therefore, I had determined from the very outset that, unless there were exceptional circumstances, I would invite the Chief Secretary to serve for the five-year term of my office as Chief Executive.

Since 1st July 1997, Anson and I have worked well closely. The fact is that when we were faced with some really very difficult and tough challenges, she made some remarkable and important contributions. She was always there to support me, to give me the right advice for us to move forward together. The fact is that Anson's stay will, I know, be in the long-term overall interests of Hong Kong. I know my decision is supported by the Executive Council, by all the principal officials, and I know will be by all the civil servants. I believe this decision will also be welcomed by the community as a whole. We together will be able to serve the interests of the SAR as we move forward into the 21st century. Thank you very much.

END/Tuesday, March 23, 1999

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