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Reporter: Mr Tsang, what is your administration going to do to make the elections of 2007 more democratic?

Chief Executive: We have a task force which is headed by the Chief Secretary. The task force has prepared four reports and they are going to make a fifth report which will outline the improvements made to the present arrangements for the election of the Chief Executive in 2007 and the election of the Legislative Council in 2008. I am sure the arrangements proposed would be more inclusive, more open, more democratic than the present arrangements. These will be outlined in this report and it will be open for public consultation in the autumn.

Reporter: Would you assess the current state of Hong Kong's economy and outline the toughest economic challenges for Hong Kong moving ahead?

Chief Executive: How much time are you going to give me to answer that question? Hong Kong is doing reasonably well. We are now in a stage of broad-based economic recovery, reflected in our volume of trade, in our internal consumption, in tourism and in practically all aspects of our financial activities. Furthermore, our property market and our securities market are stable. Those are also reflecting the attractiveness of Hong Kong. Liquidity remains strong, so I believe that our forecast of economic growth between 4.5% and 5.5% for this year is a reasonable one. Our challenges are many, of course. We are in a globalised economy. We face competition from all around the world both in terms of the areas in which we can do best like financial services, in areas in which we have engaged heavily on the Mainland, like manufacturing. I am sure that Hong Kong people and Hong Kong investors and Hong Kong businessmen will do their very best to take on that challenge and we are going to show our abilities in the process.

Reporter: Mr Tsang, how exactly do you intend to organise your dialogue with the Central Government?

Chief Executive: There are the usual channels we have with the Hong Kong and Macao Affairs Office. There are various ministries with whom we work and again through the Hong Kong and Macao Affairs Office, and occasionally when I visit Beijing, I will have a chance to see the national leaders. Our channels are open, our transactions are quite transparent and I will continue to develop those channels. I am sure that by the end of my present term I will know more Central People's Government personalities than I do know now.

Reporter: Congratulations Mr Tsang on your appointment. You said that you were very careful. You weighed every word when speaking with EC members because you knew those words would be translated into pledges that you would have to fulfil. So what are the pledges that you have to fulfil that you have made in exchange for support for the election?

Chief Executive: As far as the pledges are concerned, they have all been reported clearly in the media. Because every meeting I have with them, have been fully accounted for and reported fully. What is important is that I have stuck quite firmly to the manifesto which I published for all to see. Most pledges are stemming from the statements, the undertakings I made in the manifesto itself. As regards individual undertakings, I am sure I will be able to consult my colleagues, the principal officials, senior civil service, and I will be discussing with the Legislative Council to set out what I believe should be Hong Kong's priorities in tackling all these pledges. I will account for them in my Policy Address to be delivered in October.

Reporter: Mr Tsang, as a man of the people and as you seek to consolidate your support base in society, would you consider marching on July 1 and if not, why not?

Chief Executive: Marching in the street to demonstrate feeling is a prerogative of Hong Kong people. I am a Hong Kong person and I can exercise my right to do it and I can exercise my right not to do it. And that's the reason. I want to exercise my right whatever I want to do. I have not got any particular grievance about Hong Kong. I love this place. I have no grounds myself to march or demonstrate my anger. In fact I am a very happy man today.

(Please also refer to the Chinese portion of the transcript.)

Ends/Tuesday, June 21, 2005
Issued at HKT 20:23

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