Following is the transcript of the media session (English part) by the Chief Executive, Mr Tung Chee Hwa, after visiting two housing estates in East Kowloon this afternoon:

Question: Why don't the Government take concrete steps to tackle the property speculation in Hong Kong?

CE: We are, of course, looking at the issue all the time. As you know, I have made housing the number one issue for the SAR Government. The fundamental solution to housing is to supply more land, to build more houses. And as you know, the long-term objective is to provide 85,000 units every year for the next 10 years, to have 70 per cent of Hong Kong's population live in units they own themselves. And this are, of course, very lofty goals. I have every confidence and every determination to make sure they come about. If you get achieved this goals and I know we will, I believe the quality of housing will be then much better. The price of housing will be then much more affordable.

Question: Mr Tung, what do you think about the houses that you have visited today?

CE: I've visited two flats. They are, one of them, is about 180 square feet, it's Mark Four, and the other is about 600 square feet. Of course, as I said earlier on that, we are undertaking tremendous programme of renewal here in this district. And to have seen the 600 square feet apartment which is in really good condition, makes one realise how important this programme is and how massive the programme is. And we are determined to push this ahead. But I think it is also very interesting to talk to the occupants of these units and to find out many of them come from mainland China and their second generation are all doing rather well here in Hong Kong. And as we now become part of China, we are one country, we are really moving forward with a great deal of confidence and I am sure the third generation will even have a better future.

Question: In the rules that you put forward for the next legislature elections that many functional constituencies to be chosen for ... any companies controlled by you and members of your family have votes?

CE: I have not been involved in the running of my business. The business I was running for a long time already fall out these months already. I am not involved, I am not going to be involved at all in these things.

Question: It is still possible that they will have to vote.

CE: I have absolutely no idea whether they are part of it, they are not part of it. I am really not interested.

Question: Mr Tung, my question is any strategy for tackling the remaining VBP problems, and what challenges...?

CE: I just answered this.

Question: In English. But we want in English, otherwise I wouldn't be here, right?

CE: Well, as you know the number of Vietnamese remaining in Hong Kong has declined quite dramatically over the last number of years. On the other hand, we all note with concern the recent influx of refugees. And we are taking a very serious look at the whole issue and we hope to be in a position to tell you what we intend to do in the very near future.