The Chief Executive, Mr Tung Chee Hwa, said today (Wednesday) that unlimited economic opportunities will present themselves in the coming decades as Asia's economy continues to grow and as China becomes one of the largest economies in the world.

Addressing the sixth Annual World Economic Development Congress this morning, Mr Tung called on the international business community to take advantage of these opportunities.

And to do this, where else should the international business community be located but right here in Hong Kong, he said.

Mr Tung noted that the east Asia region which includes China, Japan, Korea, Taiwan, Hong Kong and ASEAN countries could have an economy larger than that of NAFTA or the European Union soon in the 21st century.

"This region, already well known for its high savings rate, could produce US$1,200 to US$1,300 billion in additional annual savings than it does today; thereby becoming one of the largest capital markets in the world.

"At the same time, the region will serve as the largest user of capital in the world. Asia Development Bank estimates that by the year 2000, the region will have spent almost US$1,000 billion in investments in infrastructure projects alone," he said.

Mr Tung said that this meant that Asia might well emerge as the world's largest producer, capital lender, and capital borrower, as well as the world's largest consumer market.

As for Hong Kong, the SAR will continue to provide a friendly business environment and a world-class service to back up international corporations doing businesses in Hong Kong, in China or throughout Asia.

"Our Chinese heritage, western management style, and ability to speak English and Chinese have placed Hong Kong in the best position to provide the international business community with the people, the knowledge, and the skills necessary to run successful business in China and the rest of Asia," he said.

Mr Tung said that his vision of Hong Kong would guide the Special Administrative Region Government in the next five years and that the international business community would have an active role to play in turning this vision into a reality.

Looking into the 21st century, he sees Hong Kong as a leading financial and services centre, remaining at the forefront of the new age with cutting-edge new technology and new industries, and being a truly international and cosmospolitan city which combines the strengths of the east and the west.

Mr Tung also sees Hong Kong, as a Special Administrative Region, making significant contributions to the modernisation of China and moving forward with China as she emerges as a leader among the community of nations. He also wants to see an increasingly affluent and well-educated population here, proud of its Chinese heritage and confident in its destiny and global outlook.

The Chief Executive said that in his first policy address, to be delivered on October 8, he would be setting out a programme to tackle a wide range of matters close to the hearts of Hong Kong people.

To meet challenges which lie ahead, Mr Tung said Hong Kong would be sticking to the free market approach that had brought it prosperity in the past and aiming to improve the competitiveness of its business environment.

"We will be investing heavily in our information infrastructure, our education and our expertise in this field. We aim to give every child in Hong Kong an education of the highest quality, to improve their language skills and their ability to use new technologies.

"We will be speeding up land formation, extending our mass transit railway system and other infrastructure, and increasing the pace of home construction to 85,000 units per annum to achieve a home ownership rate of 70 per cent within ten years.

"We are setting up provident funds and extending care for the elderly in order that our old people are provided with a sense of security, worthiness, and belonging," he said.

On Hong Kong's political development, Mr Tung pointed out that the progress to be achieved in ten years from 1997 in terms of democratic process would be far more comprehensive and far-reaching than what it had received under 156 years of colonial rule.

"We as a community is very much committed to a democratic process and we are moving forward. We are moving forward in accordance to the Basic Law, which is our constitution.

"And I have every confidence that if we move forward in this way, the society in Hong Kong will continue to sustain its economic development, its fundamental rights of freedom and the rights that are accorded to us. We are very confident that this structure is particularly suited for us here in Hong Kong," he stressed.

Conceding that the international community's perception of China is important to the future of Hong Kong, Mr Tung noted that many in the West tend to define China through specific human rights issues while others feel a sense of threat in China's rising prosperity.

He said : "What is happening in China is not a change to a monolithic giant, but a transformation of the lives of millions of men and women. They are being lifted out of poverty, given education and homes, and given opportunities that they have never had before.

"China's life expectancy rate, child mortality rate as well as adult literacy rate have improved significantly. The percentage of people living at or below subsistence level in China decreased from 33 per cent in 1979 to single digit today."

Mr Tung said that this transformation process is one that "warms the heart of everyone concerned for basic human condition".

He went on to say that from a practical point of view, with a population of 1.2 billion people and a commitment to vastly improve the standard of living of people through a market economy, China needs social stability as well as stability and peace in Asia and around the world.

"Like many other developing nations, the strengthening of the military is not a tool for expansion but a declaration of independence and a political statement to the international audience," he said.

"This is particularly important bearing in mind the 156 years of humiliation China has gone through in her recent history," he added.