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

Following is the transcript of the question and answer session given by the Chief Executive, Mr Tung Chee Hwa, (English portion) after visiting a garment factory in To Kwa Wan and the Hong Kong Air Cargo Terminals Limited (HACTL) at the Hong Kong International Airport:

Reporter: How do you see the economic development this year, and how will the Government help the clothing industry to have further developments?

Chief Executive: Earlier today, I had the chance to visit one of the clothing makers in Hong Kong. It has very good production facilities. As you know, the clothing and textile industry has always been a major employer in Hong Kong. Much of the industry has moved up north or to other parts of Southeast Asia. Today, the industry still employs over seventy thousand people. It is a very important industry and I was delighted to hear that the business is doing very good. In fact, you will be surprised to know that one out of every eight shirts wore by men in the United States is made by that particular firm. It is a very successful firm and it is doing a wonderful job. By 2005, when the quota system comes to an end, there will be new challenges as well as new opportunities for Hong Kong. I am sure Hong Kong industrialists and businessmen will seize these new opportunities. The Government will certainly stand ready to help.

Chief Executive's transcript (Chinese part)

End/Thursday, August 17, 2000

NNNN