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

The Financial Secretary, Mr Donald Tsang, today (November 1) welcomed the news that Hong Kong has retained its rating as the world's freest economy in the 2001 Index of Economic Freedom released by The Heritage Foundation and The Wall Street Journal.

Hong Kong has topped the rankings since The Heritage Foundation first published its Index in 1995.

"I am delighted that we are still number one. It recognises our continuing commitment to free enterprises, free trade and free competition," Mr Tsang said. "And the people of Hong Kong, more than anyone else, should take a bow for this achievement."

"As the report noted - 'the rule of law, a free press and an independent academic community are the oxygen of a free society'. We will continue to ensure an uninterrupted flow of oxygen."

According to The Heritage Foundation, Hong Kong ranks number one out of 161 economies. On a best-to-worst scale of 1 to 5, Hong Kong scores 1.30. Taking the 10 broad criteria used by the Foundation, Hong Kong scores a best possible 1 in trade policy, monetary policy, foreign investment, banking and finance, property rights, regulation and black market. It scores 2 in the remaining categories - wages and prices, fiscal burden of government and government intervention.

"We appreciate that the Foundation recognises government intervention in the economy is low and it feels encouraged by the on-going orderly disposal of assets acquired in the market operation in August 1998 to counter speculative attacks," Mr Tsang said.

He said the government would study the Report to see where there may be areas for further enhancing Hong Kong's economic freedom.

"One thing is clear, we will not depart from our free market principles and policies which have underpinned Hong Kong's success," the Financial Secretary added.

Other highly reputed institutions - like the Canada's Fraser Institute, the Harvard Institute for International Development, World Economic Forum, The International Institute of Management Development and the Economist Intelligence Unit - also identify Hong Kong as one of the world's highly competitive business environments.

Information on Hong Kong's economic freedom with links to various sites can be found on the website "Hong Kong and the pursuit of Economic Freedom". The site is located at http://www.freeconomy.org.

End/Wednesday, November 1, 2000

NNNN