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Following is the English translation of CE's speech at Labour Day Reception held at Government House this (May 1) afternoon:

Ladies and gentlemen,

First of all, I would like to welcome all of you to the Labour Day Reception held by the HKSAR Government. It is a great pleasure to join you at the celebration of the first Labour Day in the new millennium.

Today's reception is marked by the presence of many important guests, including leaders of local trade unions, representatives of business associations as well as representatives of employers and employees. Over the past year, you have all made a concerted effort to contribute to the recovery of Hong Kong's economy and to maintain the prosperity of our society. On behalf of the HKSAR Government, I would like to express our heartfelt appreciation to you all. I am particularly delighted to see that both employers and employees coming to celebrate Labour Day.

Ever since the 1950's, Hong Kong has developed from a small entrepot into a major manufacturing centre, an international city of repute, and a financial and business centre. Our per capita GDP ranks among the highest in the world. During this period, the people of Hong Kong created one miracle after another, with the labour sector making a tremendous contribution to our economy. Over the decades, the labour sector has supported our economic growth with dedication and determination, given full play to the traditional Chinese virtues of diligence and thrift, invested in the education of the next generations and nurtured new talent to establish a firm foundation for Hong Kong's long term development. It is thus very fitting for us to pay tribute on Labour Day to the labour sector for their invaluable contribution to Hong Kong's economic prosperity and to our social development.

Over the past year, we have overcome the many challenges posed by the Asian financial turmoil. Our economy has turned the corner and economic growth has resumed. Also, the employment situation is improving gradually. These would not have been possible without the concerted efforts of the community and your active contribution. We are confident that in the coming year, Hong Kong's economy will pick up steadily and that growth will be sustained. With China's imminent accession to the World Trade Organization(WTO), there will be a substantial increase in the foreign trade of China, which is expected to double in six to seven years' time. After joining the WTO, China will gradually open up its service industries, such as finance, telecommunications, transport, insurance and the retail sector. This will create new jobs and business opportunities for Hong Kong.

With the trend of globalization, interaction between the economies of the world is more prominent than ever. Rapid advances in technology and information are also constantly reshaping our society. In this new era, it is imperative that Hong Kong continue to make progress in developing the knowledge economy. Only by doing so can we turn high technology, new knowledge and innovative concepts effectively into elements which boost our productivity, and only in this way will we be able to grasp emerging opportunities, maintain our position as a leading economy, create more wealth for Hong Kong and enhance the quality of life for the people of Hong Kong.

In the face of changes brought about by economic restructuring, the business and industrial sector, the labour sector and the government must work hand in hand to turn challenges into new opportunities.

Our labour force must respond to the changes with courage and a readiness to undergo retraining. They should also actively upgrade themselves by acquiring better knowledge and skills and enhance their adaptability to a changing environment.

For the business and industrial sector, it is not sufficient to move towards enterprise development, to capitalise on innovation and high technology, to increase competitiveness, to launch their products in the international market or to establish their own brand names. They must also step up training for their employees, so that they are better equipped to raise productivity. An employer should be concerned about the needs of his employees. A harmonious relationship between employers and employees is very important to the stability of a company and the fostering of a sense of belonging among employees. A good relationship between the two parties would ensure the continued growth of an enterprise.

On our part, the government will, in the long term, make substantial investment in manpower training, educational reform and promotion of continuous learning. We are also very concerned about the adverse impact on the labour sector brought about by the recent economic restructuring. For the immediate future, we will provide more training and retraining opportunities and stimulate the economy to create more job opportunities. We will continue to safeguard the rights of the labour sector and promote constructive labour relations.

In the course of economic restructuring, it is of vital importance that employers and employees join forces and work together in an effective partnership towards a common goal. In Hong Kong, labour relations have always been harmonious, and both sides are able to resolve their differences and settle disputes in the spirit of mutual cooperation and goodwill. The new millennium brings with it boundless opportunities and great challenges. It is my earnest hope that we will maintain our fine tradition, that both employers and employees continue to show understanding for each other and that we strengthen open and direct communication, so as to contribute towards Hong Kong's sustained economic revival and long-term development. I am confident that with the collective effort of the government, employers and employees, Hong Kong will be able to scale new heights.

Thank you.

Photo: The Chief Executive, Mr Tung Chee Hwa, attends a Labour Day reception held by the Hong Kong Federation of Trade Unions. Picture shows Mr Tung proposing a toast together with other officiating guests at the reception.

End/Monday, May 1, 2000

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