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Following is the transcript of the Chief Executive,

Mr Tung Chee Hwa, at the press conference held after the third meeting of the Chief Executive's Council of International Advisers today (November 30):

Mr Tung: We have just completed the third meeting of the Council of International Advisers. We have had an extremely useful and constructive exchange of views about the international economic outlook, business prospects in the region, and the latest development of growth in the Hong Kong economy.

The international advisers consider that Hong Kong has coped very well with the financial turmoil of Asia. They welcome the reforms in the financial market and consider that this will enhance our international standing. The recovery of the Hong Kong economy is very much noted and welcomed. They noted that Hong Kong's GDP growth for the year 2000 will exceed that of the other economies in the region.

The economies in North America and Europe are expected to continue to grow in the year 2001, although for North America the growth is likely to moderate somewhat. The Japanese economy will also show positive growth. And these are very important to Hong Kong because they are major markets for our goods and services.

However, the advisers also cautioned us that there are factors that need to be watched very closely: the oil price volatility, the possibility of a downturn in the US economy, the exchange rate of the Euro, as well as the rapid movement of funds across regions around the world.

We have also taken the opportunity to explain to our advisers about development in IT, in innovation and technology, and also the education reforms that we are undertaking.

Finally, we also have had a chance to explain to our advisers about the establishment of 'Invest Hong Kong'. That organisation, as you know, is there to promote inward investment into Hong Kong.

To conclude, it was a very useful meeting. It is always good to talk to these top business leaders around the world about the global development, about what is happening in their markets, because these markets are very important to us. And also to be reminded how important it is for us to remain competitive in order for us to succeed in the future. Thank you very much.

Reporter: I just want to know, briefly, only about half of your advisers have come to Hong Kong today to take part in the meeting. Do you see any problems with this? How far can your discussions go with only half of your team turn out?

Mr Tung: Well, it's not exactly half. No, it's not; you know it's not half. Firstly is that there are a few more missing this time, but they are all very busy people and for different reasons, unfortunately they could not come.

Secondly is that many of them, I am on the phone with them from time to time to understand the trend and developments and to discuss a particular issue. You just don't wait for one year to have another meeting.

And thirdly is that the meeting itself, with 8 people out of 14 is very useful, very productive, and very constructive indeed.

Chief Executive's transcript (Chinese part)

End/Thursday, November 30, 2000

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