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Following is the transcript of a five-minute message on TV and radio by the Chief Executive, Mr Tung Chee Hwa, about his Policy Address today (Wednesday):

My Fellow Citizens,

I have just delivered my third Policy Address today. In it I gave a brief account of the progress made in the past two and a half years, and outlined my thinking on the way forward for Hong Kong in the 21st Century.

Since the reunification, we have successfully implemented the concept of "One Country, Two Systems". We have overcome the challenge to our economic well being in the face of the Asian financial turmoil. Such achievements have not come easily.

I am most sympathetic to the many people in Hong Kong who have been hit hard by the economic downturn. Many have to accept a much lower income than before. Some face tremendous hardship in making ends meet. My Administration is doing all that it can to stimulate economic growth and bring relief to those in hardship. We have put in place a whole package of measures to this end.

They include rebates on various taxes, and reduction in rates, as well as the freezing of many government charges. In total, we have returned over $40 billion to the community. We have introduced financial reforms such as strengthening the linked exchange rate regime and merging the two exchanges - these will further strengthen our position as an international financial centre.

To stimulate recovery and growth in our economy, we have introduced a number of key initiatives. These include giving greater support to Small and Medium-sized companies, accelerating our investment in major infrastructure projects, pushing ahead with measures to develop innovation and technology, and giving priority to promoting tourism. To help the unemployed, we are providing many more training and retraining opportunities. I believe that all these measures helped to create jobs and will provide a solid foundation for Hong Kong's long-term development.

Indeed, we are already beginning to see positive results. Our economy has improved. I am confident that our economic growth for the second half of this year will exceed 2%. The unemployment situation has stabilised.

As we enter into the 21st Century, we are facing much fiercer competition from cities in the Mainland and other parts of the world. We have no alternatives but to keep on improving, and reinventing our success story. As I explained in the Policy Address today, we must have long term strategies to turn Hong Kong into a world-class city. Our aim is simple: greater economic growth for Hong Kong and better lives for everyone who calls Hong Kong home.

Much needs to be done to achieve this. But the most urgent tasks are to educate and attract to Hong Kong a critical mass of quality people, and to create a first-class living environment for all. I have therefore chosen these as the central theme for this year's Policy Address.

The knowledge-based 21st Century requires us to produce more people of high calibre. My Administration is committed to providing the best education system possible, so that everyone will have access to quality education, and life-long learning. I have asked the Education Commission to conduct a thorough review and put forward specific proposals for reform. I am confident that this will result in welcome improvements. At the same time, we have also agreed with the Central Government detailed plans to admit people with talents and expertise from the Mainland to meet the needs of our economy.

The quality of our environment is another subject of great public concern. In today's Policy Address, I made it clear that my Administration was determined to put things right. I have announced a package of measures that will help us build a world-class home with the support of the community. I have set out long term targets for tasks such as tackling air pollution, sewage disposal, and waste reduction and recycling. Major investments will be made in many areas, and an effective administrative structure will be created to oversee these tasks. This is to make sure that our citizens will be able to enjoy a first-rate living environment within five to ten years' time. In addition to our own efforts, we also need the support and co-operation of our neighbours. I am happy to announce that we have reached agreement with the Governor of the Guangdong Province, on co-operation between Hong Kong and Guangdong on six important aspects of environmental protection. These include greater co-operation in improving the quality of water in Dongjiang river, as well as air quality in the region.

To vigorously tackle urban renewal, my Administration will be establishing a new authority to ensure that urban renewal will be carried out effectively. We plan to make better use of the Harbour waterfront, to turn these areas into attractive leisure zones where citizens and tourists alike will enjoy the spectacular views of our harbour and skyline.

All these efforts in improving the education system and our living environment are aimed at a better life for our citizens. Over the past two years, we have delivered on our pledges, despite the economic downturn. We have helped over 100,000 families purchase their own homes, provided low-cost public rental housing to another 73,000 families. We have increased the percentage of primary school students attending full-day schooling to over 30%, and have introduced systematic plans to improve the quality of our teachers. For the elderly, we have provided over 10,000 public housing units, improved the services in homes for the aged, and shortened the waiting time for these homes.

The world has just witnessed the vigour and confidence of our nation at the 50th anniversary celebration in Beijing last week. China's progress will continue to bring us fresh and abundant opportunities for further growth.

Hong Kong is a city of opportunities. I have come to know the aspirations of our citizens through my contacts with many people from many different walks of life. Many have achieved great things solely through their determination and hard work, and in the process, have helped make Hong Kong the great city that she is today. This is Hong Kong's success story. I call on all of us to greet the coming century and the new millennium with the will to succeed and the confidence that success will continue to be ours.

End/Wednesday, October 6, 1999

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