Following is the transcript of the Chief Executive, Mr Tung Chee Hwa's remarks to the media after visiting East New Territories today :

Question: Since Moody's is looking to downgrade Hongkong Bank and considering downgrading the credit rating of the Hongkong Bank, is this a blow to Hong Kong?

Mr Tung: I have not read the report of what you have just referred to, but as I have said, Hong Kong has very good economic fundamentals - one of the best in the world - in terms of our financial strength, in terms of our economic vitality, and in terms of the fact that the Chinese economy itself is doing so well. So, yes, we have a bit of a setback in the market places - the stock market and the housing. But in the longer term or in the medium term, I would think we would continue to do very, very well.

Question: How do you see the Washington Summit, and do you take any credit for how it has gone?

Mr Tung: I think I am very pleased that the Washington Summit has gone well. A relationship between the United States and the People's Republic of China which is constructive and strategic is very important to the two countries, is very important to Hong Kong, is important to the whole world. So I am very pleased it has gone very well. And in Hong Kong, we are certainly delighted. I am certainly delighted.