Following is the transcript of the Chief Executive, Mr Tung Chee Hwa's remarks to the media in Beijing today:

Reporter: ....will they provide assistance should there be another financial turmoil?

Mr Tung: I think these financial turmoils as has been proven in the past, we can handle it more than adequately. Of the many times, the leadership in Beijing -- the Central Government -- has expressed support that if there is a need, of course, the whole country will be behind us.

Reporter: Could you speak briefly about Hong Kong dollar peg...?

Mr Tung: Let me first take this opportunity to emphasise again that the linked exchange rate policy is here to stay. There will not be any changes. This has served us very well. It continues to be the most important fundamental policy of our government. We had the full capability of defending the Hong Kong dollar in the past and we will do so successfully in the future also. What has happened in the last couple of days is, I think, as a result of fallout of what is happening around us. I trust this will be long over. Hong Kong will be able to handle the situation very well because our fundamentals are very strong in every respect. I also said that in this process interest rate has gone up and sectors of our economy have been hurt. We are very conscious of this. But it has also brought some positive aspects with it. Property prices have adjusted. Stock market has adjusted. It will enable us to move a lot faster in our path of recovery which should be coming in due course.

Reporter: (about Hong Kong office in Beijing)

Mr Tung: We are planning to have an office in Beijing. The planning process is beginning and should be completed in the first quarter of next year. The office here is really for co-ordination, for better communication, for co-ordination of all the activities. I think it is a very natural thing for us to do. Certainly, one country two systems. You made a point about why there is a need for an office here. Well, this is really for the purpose of communication, for the purpose of co-ordination. "One country, two systems" is being practised in Hong Kong every day. I don't know whether any one of you knows this or not. Hong Kong as a delegation part of China participated in over 20 conferences internationally already. Hong Kong as Hong Kong, China has participated in over 300 international conferences and meetings. This really symbolises "one country, two systems" really at work.