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Following is the English portion of the transcript of the question-and-answer session by the Chief Executive, Mr Tung Chee Hwa, after delivering his speech at the luncheon jointly organised by chambers of commerce at Hong Kong Convention and Exhibition Centre today (Friday):

Question: Chief Executive, just speaking as a person who has grown up here, swam in Hong Kong waters, never drank distilled water before, looked forward to October and November as being our sunniest and bluest sky days, never had to cross the road covering my mouth against the fumes, I'd just like to say thank you personally although it was politically suicidal that you have come up with very concrete plans to improve our environment and bring back the Hong Kong that I remember. Thank you.

Mr Tung: We will work very hard not to disappoint you.

Question: Mr Tung, if I could amend that there has been some criticism after the speech that perhaps the cost will have to be borne by some of the people who are not doing as well. What do you have to say about that in terms of -- do you think that this is not really helping in a time of very poor economy?

Mr Tung: Well, the capital cost for the various environmental projects is about $30 billion. It's the capital cost. This will be spent over a period of about 10 years, and I know from affordability point of view we can afford it. And there's also a recurring cost which right now is $1.1 billion a year, rising to over $3 billion in about 10 years' time, and the question is that how should this recurring cost be borne. And I think it is important to move forward towards a principle of polluters pay basis because that is a way to discourage more pollution. Now, having said that, yes, as we are slowly recovering from a difficult economic situation, there are always these worries and anxieties. As a government, we have to look forward very carefully, how we move forward on this, making sure, on the one hand, the tender recovery continues and, on the other hand, polluters pay principle is applied. And on the other side, of course, there are all these many ordinary people there who have gone through an even tougher time, and we have to look at those, too, but I think we should not, as a principle, deviate from a polluters pay principle.

Question: Good afternoon, Chief Executive. I think you must have read all the headline stories today about the Democratic Party, alleging that you have asked one of their core members, Mr Szeto Wah, not to organise any functions for the June 4th event this year. I also notice from Ming Pao that Mr Szeto himself actually denied this. Can you confirm this to us?

Mr Tung: Questions like this reminds me of yesterday afternoon. Over a period of the last two and a half years, I have to tell you I have been engaged in discussions with certain members of the Democratic Party, in the hope that there will be better communication, better dialogue, creating a more harmonious society, and also in the hope that there will be greater recognition of what China is doing. I do or I did all this because I wanted the return to be smooth and successful, and I want 'One country, Two systems' to work well here in Hong Kong. I have told them that over the last 50 years, China has undergone some unbelievable changes and that the society on a whole is very stable, economy is growing, people's livelihood is improving, and that its international position is also being recognised and being increasingly respected, and that those and all of us who are Chinese should be very proud of this and that I believe they should really understand more as to what's happening in China. I've also told them that it is time to put down the baggage of June 4th and move forward; construct and build a better Hong Kong together and contribute to China's further development. Throughout these discussions, I did not - I have to say - I did not ask them to stop demonstrating on June 4th, some suggest, in return for visits to Beijing. I mean, it is not real. What I did was to encourage them to understand what is happening in China. I would like to emphasise that it was all good intention and that unfortunately, I failed in my duty so far but I'd like to emphasise and I think you can see that this has not affected people from demonstrating. It has not affected people from speaking out because these are all guaranteed by the Basic Law and it's also my personal belief and the belief of this government.

You know, the matter of entry into China or exit is a matter for the Central Government. It is not something I personally or this government can make decision on. And under 'One country, Two systems', it is not something I can interfere on. But as Chief Executive, I think what I wanted to do was really to ask many people in Hong Kong, democrats included, and the others I have talked to in the same vein, to understand what's happening in China, and it is purely with good intentions. As Chief Executive, I will continue to work hard in this area and hopefully the gap will be narrowed and that the understanding would be further improved. So I'm sorry it's a long-winded answer but I thought it's important I give a comprehensive answer to that.

Question: Mr Tung, those of us in the Chambers of Commerce and in the business college and for the environment that have worked so hard to bring about some of the changes that you addressed yesterday, we would like to thank you for putting that high on your agenda. At the same time, as a matter of policy, I might ask, would you take advantage of this opportunity to introduce new building standards and building practices in the Central reclamation project, in urban renewal and in the north-east Kowloon development that will raise our gain in the environment sphere for a sustainable development, for a sustainable community? And will those processes include transparency in brining the community into the development process here?

Mr Tung: Well, first of all, let me say this. That sustainable development is very important to Hong Kong, and I'd like to state again what I said yesterday, defining what is sustainable development. I define it as finding ways to increase prosperity and improve the quality of life by reducing overall pollution and waste, meeting our own needs and aspirations without doing damage to the prospects of future generations, reducing the environmental burden we put on our neighbours and helping to preserve common resources. So it is not just about air and water. It is about all these things together and, you know, it's going to take a huge change of culture for the community as a whole, the government - really, everybody - to move forward on this and I hope in the months and years ahead, we all work very hard to make sure we all move in the same direction. But to answer you, yes. Obviously, we have to be very conscious of environmental-friendly buildings of having new specifications, new standards. And yes, obviously, we need to go through public consultation to move ahead in all these things. We would do all these. You can be assured.

Question: When you have a lunch speech like that, I asked a question about the housing and last year, I couldn't have the time -- the chance to ask the question. I'm prepared to ask question today, so I spent one and a half hours reading your policy speech, the English version, last night. To be honest, I'm really -- I tried to find some fault or I tried to raise some questions. I really could not find any more question to ask. This means, Mr Tung, that in case you don't have any more many questions or many people ask you question today, don't be disappointed. This means we are all satisfied with your speech, we are all satisfied with your concrete proposals. Thank you.

Mr Tung: Thank you very much. I said earlier on I know I'm amongst friends. Thank you very much.

End/Friday, October 8, 1999

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