The following is the transcript of remarks to reporters by the Chief Executive, Mr Tung Chee Hwa, after meetings with Malaysian Prime Minister Dr Mahathir bin Mohamad and Malaysian Deputy Prime Minister Anwar Ibrahim in Kuala Lumpur today :

I arrived in Malaysia at noon time today and was very warmly welcomed by the Malaysian Government.

I was able to have discussions with the Deputy Prime Minister and also just now with the Prime Minister. It was a very useful discussion. I explained to the Prime Minister the transition, the fact that the transition has been very smooth, that all the three branches of our government in Hong Kong - the Executive, the Legislative and the Judiciary - are all working very well and moving forward with pride and confidence. Hong Kong is moving forward very well.

As you know, Hong Kong has a very important trade relationship with Malaysia which has been growing at about 25 per cent per annum. It is an important relationship which we want to strengthen.

The fact that, that we also have a very important relationship with the ASEAN nations. Trade growing at 21 per cent over the last five years and Malaysia this year takes the chair of ASEAN so it is appropriate for me to be here as the first stop of my overseas trip and to have the opportunity to talk to the Prime Minister and the Deputy Prime Minister.

It was a very useful discussion.