Following is the transcript of the Chief Executive, Mr Tung Chee Hwa's remarks to the press after meeting members of the US Senate Foreign Relations Committee and members of its Sub-committee on East Asian and Pacific Affairs at the US Senate building in Washington D.C. on Tuesday, September 9, US time:

His remarks to Senator Craig Thomas (Republican), chairman of the Sub-committee, and Senator John Kerry (Democrat), Senior Democrat member of the sub-committee:

SENATOR THOMAS: We just wanted to take one minute, C.H., Senator Kerry and I, to welcome you here.

MR TUNG: Thank you very, very much.

SENATOR THOMAS: A young man on our staff has

put it in this form as well, so we wanted you to have

that.

MR TUNG: Thank you very, very much.

SENATOR THOMAS: You're more than welcome.

MR TUNG: Thank you. Thank you very much.

SENATOR THOMAS: You're more than welcome.

QUESTION: Can you say something about the meeting

with the Chief Executive of Hong Kong?

SENATOR THOMAS: Oh, well, of course, all of us

are familiar with the Chief Executive. We've known him

before. We're delighted that he's here. I was very impressed with his observations with regard to what has happened since the changeover. Things have gone smoothly. Certainly some of us hope that they continue that way and perhaps move a little faster than they probably will. Nevertheless, we were very impressed with what he had to say. Senator.

SENATOR KERRY: I think every member of the committee expressed considerable respect and admiration, even, for the way in which Chief Executive C. H. Tung has managed the transition, and I think that each of us also expressed some concerns which he is well aware of with respect to the election process, and we had a very good discussion about that. I think it's fair to say that the committee will be watching and continuing to be deeply involved in visits and in a continued dialogue, and that it's our hope that the major issues that the Chief Executive is very, very aware of will continue to be well-received in that discussion between us, but we did express those concerns today and I think received some very good explanations of what the next years in the process will bring.

QUESTION: What is the concern that you refer to?

SENATOR KERRY: I think there is a concern, obviously, that the electoral process is going to be one that moves as rapidly as possible towards universal suffrage, and that the constituencies will be adequately represented with a broad enough base of electoral support to give value to the democratic process, and I think that the Chief Executive expressed, obviously, a very keen awareness of our concerns about that, and I think is trying to approach this with a measured, balanced effort that both respects those concerns but at the same time meets some of the internal needs of the city.

QUESTION: We have the problems of the Basic Law which are already set out for us.

SENATOR KERRY: Yes.

QUESTION: So do you think this is a wise thing?

SENATOR THOMAS: I think certainly the Basic Law is there. I think one of the concerns is whether or not, over a period of time, the PRC, Beijing will have very subtle pressures to cause things to change. I don't think anyone expects Beijing to march down there and make changes next month, but over a period of time, will there continue to be movement towards democracy? We hope so. Will there continue to be open markets and the movement towards the market place? We hope so, and we want to help assist in causing that to happen. Thank you very much.

SENATOR KERRY: Thank you very much.

MR TUNG: (Chinese spoken.) Maybe I should say in English first, because we had a very useful discussion. I explained to the Senators about the transition, about what happened since the transition. It was a very useful discussion. Obviously, we also discuss about the election next year, and the concern that the Senators have about these elections. I have explained to them that we are moving forward in accordance to the Basic Law, and we are moving forward in what we think is very important to Hong Kong, and is in the long term interest of Hong Kong, and we believe what we are doing is in the long term interests of Hong Kong and that, while we appreciate the concern expressed by the Senators, at the end of the day we must do what is right for Hong Kong, in the interest of Hong Kong, and this we will always do. But we had a very useful discussion, a discussion where we all understand each other's position.

Obviously, you can understand that given this different history, different culture, we all have different beliefs.

QUESTION: Have you agreed to disagree, Mr. Tung? Is that essentially it?

MR TUNG: Well, the issue is not really that, because the issue is that this is an election in Hong Kong, and in Hong Kong we must make the right decision for Hong Kong people. It is our decision. Thank you very much.

QUESTION: Are you going to do anything more to

address their concerns?

MR TUNG: I think the issue is really for us to

do what needs to be done in Hong Kong, because it is a

Hong Kong issue, and we have to do what is right for Hong

Kong. (Q&A in Cantonese to follow).

* Photo: The Chief Executive, Mr Tung Chee Hwa, receiving a gift of a work of calligraphy from Senator Craig Thomas (right) and Senator John Kerry, leading members of the US Senate Foreign Relations Committee and its Sub-committee on East Asian and Pacific Affairs on Tuesday (September 9, US time).