*****************************************************

Following is a transcript of the remarks by the Chief Executive, Mr Tung Chee Hwa, to reporters in Melbourne today (Tuesday):

Reporter (RTHK): How concerned are you about the drop in the stock market and is it something you talked about with the Prime Minister (John Howard)?

Mr Tung: Obviously, the continued currency turmoil in Asia is a concern for all of us. I did have a chance to exchange views with the Prime Minister, Mr John Howard, on those and other issues and we all recognise the importance of the stability of the yen and that as long as this major currency is unstable it will have a direct impact on the Hong Kong stock market and Hong Kong interest rates and we all look forward as soon as possible to a more stable exchange rate.

Thank you.

Transcript of remarks by Chief Executive to reporters in Melbourne (chinese part)

End/Tuesday, June 16, 1998

NNNN