Following is the transcript of remarks by the Chief Executive, Mr Tung Chee Hwa, to reporters at Okura Hotel, Tokyo, today :

Reporter (TVB): First of all, why are you not bringing up the question of the Diaoyu Islands and war reparations with the Japanese and secondly how can Japan help in the privatisation of State Enterprises in China ?

Mr Tung: As I said earlier on in Chinese that this question was not brought up and as I told you in Hong Kong I do not intend to bring the subject up but if it is brought up I will be happy to discuss it. My position is well know, that Diaoyu Islands belong to China and that this is a very strong personal feeling and I also emphasise that while the sentiments of many people in Hong Kong are well known, these are the subjects that best be left to be discussed by the two governments involved, the Central Government in Beijing and also the Japanese Government and I think it would be a more productive way and a better way to proceed with this issue.

Reporter (TVB): State owned enterprises?

Mr Tung: With regards to the State Owned Enterprises, obviously this is a tremendous undertaking by the People's Republic of China and that there will be requirement from the point of view of fresh capital, expertise and Hong Kong certainly will look forward in participating in those and I imagine that the Japanese companies will be very interested.

Reporter (Reuters TV, Tokyo): Of the many places you have been visiting since the Handover, what's most critical about visiting Japan and have you noticed any change, particularly in mind of the way Japan and the United States are renegotiating their defence agreement, any difference in the way they are looking at Hong Kong?

Mr Tung: Well this is the fourth country I have visited and I think, as the days go by since I have visited the United States and Singapore-Malaysia, of course we held the World Bank and IMF meetings in Hong Kong, and since that time people see more and more of what's happening in Hong Kong, they are growing more and more confident and I think, I get the feeling in Japan is that more and more confidence is building up that Hong Kong will go well, one country, two systems will be implemented as it is now being implemented. So my job is relatively easier every country I go, I hope.

Photo 1: The Chief Executive, Mr Tung Chee Hwa, calls on Japanese Minister of Finance Mr Hiroshi Mitsuzuka this (Thursday) morning. On Mr Tung's left is the Secretary for Trade and Industry, Miss Denise Yue.

Photo 2: The Chief Executive, Mr Tung Chee Hwa, meeting with Japanese Minister for International Trade and Industry, Mr Mitsuo Horiuchi (left) this morning.

Photo 3: The Chief Executive, Mr Tung Chee Hwa, shaking hands with the Prime Minister of Japan, Mr Ryutaro Hashimoto today. Accompanying were Principal Hong Kong Economic and Trade Representative, Tokyo, Mr Paul Leung (first from left); Secretary for Trade and Industry, Miss Denise Yue, and Private Secretary to the Chief Executive, Mr Joshua Law (first from right).