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The following is the transcript (English portion) of the Chief Executive, Mr Tung Chee Hwa, at the press conference today (Wednesday) after delivering his Policy Address to the Legislative Council:

Reporter: Talking about the environment, you were targeting motor vehicles in your effort to tackle this problem. Does it mean car owners will have to pay a lot of money? It will be very expensive to own a car and eventually you are basically trying to decrease car ownership in Hong Kong.

Mr Tung: Well, I think air pollution is a very serious problem, and I've also very specifically highlighted that air pollution comes mainly from diesel-driven vehicles. And as you know, private car owners -- your car probably though I'm sure is driven by petrol, it is not driven by diesel. So our objective now is how to control the increase in the number of diesel vehicles, how to reduce the number of diesel vehicles, how to make sure the new diesel vehicles which must be used in Hong Kong will have very good standard engine so that the emission of particulates is reduced to the minimum. So I hope you read very carefully my Policy Address because it went a long, long way to describe what we need to do, and the whole objective is by 2005, Hong Kong's air quality will be as good as London or New York. This is our objective. If you ask me today, do I have confidence to achieve this? And I would tell you, yes, I have and we would do it. We would work very hard to do it.

Reporter: I'd like to follow up on a question asked by my colleague from the China Daily, regarding the counter-balance between long term and short term economic stimulus measures. You mentioned that you're expecting two per cent growth in the second half of the year. Are you comfortable that you strike a balance? And the second question -- so many questions, so little time. Second question kind of -- you mentioned several times during the course of the Policy Address and a couple of times here so far that your goal is to -- the goal of your administration is to make Hong Kong into a world class city. To me, that sounds as if you don't think Hong Kong is a world class city right now. How come?

Mr Tung: Well, I'm very flattered that you think so, especially you're from America. If you think so, it's great. All I can tell you is that even if you think so, we will try to do better. Now, let me tell you this. Firstly, it's that we had the very severe hit --received a very severe hit from Asia financial turmoil, but we have now recovered from it. We are now moving forward. We have taken a lot of short term measures and now we are seeing the fruit of all the things we are doing, all the things we have done. I think it is important when you're hit like this, you try to respond to see what can be done. But on the other hand, especially when times are difficult, one should never lose sight of the long term, because sometimes you get lost in the battles for short term successes. So I have always reminded myself, you know, why we tackle the short term problem, we got to think of the long term, too. So yes, is the balance right? Is the balance wrong? Everyone can be entitled to his view, but if you ask me, the answer is very natural. I think our balance is very good. We're striking the right thing between the long term and the short term, but everything we do in the long term is to include the livelihood of people of Hong Kong, is to make sure Hong Kong continues to be a powerhouse in Asia. And to do that, we need to gather the best quality people in Hong Kong, and therefore we need to provide the best education. And to do that, we need to provide the best environment - living environment - in Hong Kong, and that's all we will do. Thank you.

Reporter: In your Address, you talk much about your government did much to improve and recover the economy of Hong Kong, but in comparison with the neighbouring countries and areas, the process of the recovering -- economy recovering of Hong Kong might be slower. The public opinion say there are many reasons but mainly due to the ineffective performance of the government officers. So what's your comment about this and what's the main shortcomings of the government officers in the past two years and how to improve it? Thank you.

Mr Tung: Let me tell you this. Obviously, we look at every country in the world, including those in Asia, how their economies are performing. Why some are performing better than us? Others are performing not so good.

The recovery of Korea, Singapore, Thailand are very, very impressive. Korea's foreign exchange reserve by the end of last month reached $65 billion in one year, and if you think not too long ago, they had nothing. Thailand, too, has come back very strongly. And the reason why is very simple. Firstly, it's that their economy is basically a manufacture-based economy. They're manufacturing -- in the western world, particularly United States of America is buying a lot because of the strength of their economy. And that has helped the economy to move forward very, very strongly. Secondly, it's that their currency has depreciated by 30 per cent or 20 per cent or 35 per cent. So therefore, their products are very, very cheap moving overseas. In the case of Hong Kong, our economy is overwhelmingly a service economy. It's not a manufacturing economy, okay? And in a service economy, especially with financial services, you know, your response to recovery will be much slower, and this is the principal reason why this is happening. I can stand here, talk to you about economic theory for the next hour but I think I better let other people ask questions.

Reporter: By 2005, we will see a shortening of length of the waiting time for public housing. And also by 2005, there will be almost full conversion for diesel taxis, diesel minibuses and diesel lightweight vehicles. Do you wish to see all this happening as the Chief Executive of Hong Kong in 2005 as a result of your hard efforts?

Mr Tung: Well, you're asking a question in a roundabout way. The answer is that I'm so busy with the work I'm doing, I haven't given this matter any thought whatsoever.

Reporter: ... the issue of universal suffrage you say that some people think that it is time start examining and discussing this. Is that also your view? Is there any reason why people should not begin discussing and examining an issue of such importance now?

Mr Tung: I have said, and this is the view which I have held for a long time, that firstly, let me put it this way. There are people in Hong Kong who think we should move towards universal suffrage now. There are people who say, 'No, no, no. You shouldn't do that because that will spell problems for Hong Kong.' My view is this: the Basic Law has given us ten years - very specifically ten years - to find our way forward, how to develop the universal suffrage democracy that you are referring to, and I think the ten years is very appropriate and we are moving forward in that direction. Thank you very much.

Chief Executive 's transcript at press conference (Chinese part)

Photo: The Chief Executive, Mr Tung Chee Hwa, attends a press conferenceafter delivering his Policy Address at Legislative Council.

End/Wednesday, October 6, 1999

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