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

The Chief Executive, Mr Tung Chee Hwa issued the following statement today:

The Chief Executive, Mr Tung Chee Hwa was very concerned that a large number of citizens took part in the procession today (July 1). He expressed his understanding of the aspirations of the participants.

He said the SAR Government understood fully the importance the community attached to their rights and freedoms. On this, the Government and the public share the same position. "We shall continue to take active steps to maintain and safeguard rights and freedoms and develop democracy in a gradual and orderly manner according to the blueprint laid down in the Basic Law," he stressed.

He pointed out that enactment of the National Security (Legislative Provisions) Bill was a constitutional duty of the Hong Kong Special Administrative Region. Just like nationals of other places, Hong Kong citizens have a duty to protect national security. In discharging this obligation, the Government has pledged that the rights and freedoms which have been enjoyed by the people of Hong Kong will not be affected by enactment of the legislation.

"The Government appreciates the hardship suffered by the public in the process of economic restructuring in recent years. It is making every effort to promote successful restructuring as well as taking all necessary measures to relieve unemployment," he said.

The Government will listen more extensively and strive to strengthen communication with the public. Mr Tung hoped that the community would build on the spirit of solidarity developed in the fight against SARS and work together to relaunch Hong Kong and revitalise the economy as soon as possible.

End/Tuesday, July 1, 2003

NNNN