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The following is the transcript of the media session given by the Chief Executive, Mr Tung Chee Hwa, at Government House this (Wednesday) afternoon:

Mr Tung: I came back from a visit to Northern California, as well as a few holidays there, yesterday. I began to work this morning. It was a wonderful holiday. I also had an opportunity, while there, to meet many leaders in the field of commerce and industry, particularly those in the Silicon Valley who are involved in the technology and venture capital, and also in areas of information technology. All of them have a great deal of confidence in Hong Kong's future economic activities and particularly they feel Hong Kong has tremendous potential in the development of hi-technology, particularly in the areas of information technology.

They also recognise the huge potential market on the mainland of China, because that market is also developing very fast. It was a very useful visit, and I think in the months and the years ahead you will see Hong Kong moving in that direction, in the direction of information technology, and I think you will find us quite successful as we move forward.

As a matter of fact, most of them have said to me: You know, in Hong Kong you have really got good people, people who are creative and who have this ability to create businesses, and these are the qualities that we need when we go for innovation and go for technology.

Just now I also had attended a ceremony marking the beginning of an arrangement involving some 80 students from different parts of the world. These students all have one thing in common, they all have Chinese ancestry, and they are going to visit Beijing, Shanghai and Guangzhou. And the purpose of the visit, really, is to understand the development of China, and also to understand the Chinese culture and to look at their roots where they originally came from. I am sure the visit will leave with them a very deep impression and I think they will probably agree with me that in the 21st century you will see a China which is strong and open and successful, and one which all Chinese people will be very proud of.

Reporter: Regarding the land auction today, why is the government putting out small plots of land? In the last several auctions they didn't seem to attract the big developers.

Mr Tung: We have a programme which was laid out a few months ago, outlining the land we are going to sell to the public, and we are continuing with this particular plan. And don't forget, there is also a list of land which is available, they are bigger lots, and those people who are interested to buy these bigger lots, all they have to do is to write in and submit their proposals and we will be very delighted to look at them. What we want to be sure of is that there is ample supply of land and that is very, very important for everyone.

Reporter: Could you comment on the result of the land auction and do you think that property prices have been rising quite rapidly?

Mr Tung: I've just answered that.

Reporter: There's another aspect of the matter.

Mr Tung: I think the lots that were being sold were smaller lots and they do not really represent the market value as such. But I think what is important here is for us to really focus on the fact that we would like to see stable property prices. That is very, very important.

Chief Executive's transcript (Chinese Part).

End/Wednesday, August 4, 1999

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