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The HKSAR Government issued the following statement today (June 1):

The Chief Executive has contacted the Director of the Central People's Government Liaison Office regarding comments made by a colleague of the Liaison Office yesterday. The Director has indicated to Mr Tung that the Liaison Office will continue to operate according to the Basic Law and will not interfere with Hong Kong's commercial activities.

Under the Basic Law and the principle of "One Country, Two Systems", Hong Kong has autonomy in conducting its economic and trade affairs.

Hong Kong is a well established international financial and commercial centre. Investors and businessmen operating in Hong Kong are free to choose their business partners.

The HKSAR Government will continue to protect firmly the principles of economic freedom and free trade. This is a pillar of our success and will not change.

Hong Kong has very close economic and trade relations with the Mainland and Taiwan. The Mainland is our largest trading partner and Taiwan is our fourth largest trading partner. Maintaining and developing these trade and economic relations is important to our prosperity and the interest of Hong Kong's business community.

End/Thursday, June 1, 2000

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