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Follows is a transcript of remarks to reporters by the Chief Executive, Mr Tung Chee Hwa, after a luncheon in Toronto today (April 5, HK time).

Mr Tung : I will, by this evening, have concluded my visit to Canada. I must say I have had a wonderful visit, a very warm welcome. Discussions with the Prime Minister were very useful and productive. I also had the opportunity to see the Finance Minister and the Foreign Minister and an opportunity to discuss a wide range of issues. I will take back with me very warm memories of Canada, a country whose political leaders and leaders in commerce and industry, as well as ordinary people have so much warmth and regard for Hong Kong. I will take this very happy memory back with me to Hong Kong.

In our discussions we noted the prospect of China joining the WTO. I also explained how well Hong Kong's economy was recovering and with the recovery of the Asian economies it is time that Canadian companies should refocus their attention on Asia. There will be a great deal of opportunities out there and if you do come then you should continue to use Hong Kong as a base.

I made the point at lunch earlier that Canada was, for six years in a row, the most desirable country to live in chosen by the United Nations. I think in Hong Kong we have a lot to learn and I am determined to learn in this respect so we can make Hong Kong that much more attractive a place to live in.

So all in all it has been a wonderful visit for me and my colleagues.

Q : I would like to know whether you think that now Hong Kong has recovered somewhat, I'm wondering if you are concerned about what's happening in America's economy right now and do you think it will affect Hong Kong?

Mr Tung : You are quite right that we have noticed a major movement in the stock market in the US. But on the whole we remain confident that the US economy, the fundamentals, are sound and that after the corrections the economy will continue to move forward. As far as Hong Kong is concerned, the economy is going on rather more strongly. The Asian economies are all recovering. Mainland China is moving very well. So we continue to be very optimistic.

Q : Do you think this can be a lesson for all the Canadian companies that they should not put all their eggs in one basket?

Mr Tung : Well this is of course for Canadians to decide but let me tell you this : yesterday I visited Northern Telecom and they have some of the most advanced technologies. And as well Northern Telecom are doing things in Asia. They have 400 staff actually in Hong Kong. But what I am saying is that you have some of the best products and that the United States of America is too nearby to you, maybe Asia is a bit further away for you. But it is a big market out there and I really would urge Canadian companies to do more in Asia and don't forget to use Hong Kong as their base of operations.

Chief Executive's transcript in Toronto: media stand-up (Chinese part)

End/Wednesday, April 5, 2000

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