************************

Following is the English portion of the transcript of the media session by the Chief Executive, Mr Tung Chee Hwa, at the Government House this (April 17) afternoon:

After my visit to North America, I took four days holiday there and just came back yesterday. I am very glad to be back in Hong Kong.

I would like to discuss with you two issues. First is about press freedom and the other is about the issue of the move of Taiwan's independence.

Recently, the question of media reports on Taiwan has led to concern among certain quarters of the community about press freedom. In reality, Hong Kong's press freedom, freedom of speech and freedom of publication are protected by the Basic Law. Media can continue to act in accordance to the laws of Hong Kong.

Ever since the transition, press freedom has been fully protected and respected in Hong Kong. As Chief Executive, I shall continue to implement the Basic Law which protects the freedom of the press.

About Taiwan's independence, the HKSAR Government has consistently supported reunification according to the principle of "One China" and "One Country, Two Systems". As a Chinese, it is my strong desire to see the early reunification of the country. I believe this is also the hope of the majority of the Hong Kong people.

What we really need to understand is what effect "Taiwan's independence" might have on cross-strait relationship, on Mainland and Taiwanese economies, on Sino-US relations and on the stability of Asia-Pacific generally, and if these impacts are adverse, what would the effect be on the investment environment in Hong Kong and also on our economic recovery.

Therefore, in the months and years ahead, we must realise that the issue of "Taiwan's independence" is closely related to our own self interest in Hong Kong.

In conclusion, I have every confidence that we will continue to successfully implement "One Country, Two Systems" and that in itself is the best way in contributing towards the reunification of the country.

Chief Executive's transcript (Chinese part)

End/Monday, April 17, 2000

NNNN