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

The following is the transcript of the English part of the media session given by the acting Chief Executive, Mrs Anson Chan, at the Kai Tak Airport this (Wednesday) evening after returning from her visits to Japan and the United States:

Mrs Chan: I've been away for two weeks, as you know. I've been to Tokyo, to New York, Washington and Seattle. In all these places, I had an opportunity to meet with senior officials, particularly in Washington I met with Secretary of States Albright, Secretary of Treasury, Mr Rubin, and the House Speaker, Mr Gingrich. These visits are very useful even though at this difficult time, it's personally very difficult for me to be away from Hong Kong but I think it's necessary particularly in these uncertain times for myself and other senior officials and, as you know, the Chief Executive is currently in Australia, for all of us to explain to our trading partners how Hong Kong is faring and what we are doing to provide a stabilising factor in the current Asian financial turmoil. There is genuine appreciation and pleasure both for our sake and for their own sake that the transition has gone so well. There is a great deal of admiration for the role that Hong Kong has played in the current economic crisis and there remains overall optimism in Hong Kong's longer-term future both on the part of Government officials and on the part of business people. As I said, it's been difficult for me to be away personally from Hong Kong but during these past two weeks, I've kept in very close touch with everything that has happened in Hong Kong. I know that these are very difficult times for all of us, particularly for certain sectors of the community. But we must share the overall confidence that our overseas friends have in Hong Kong's longer-term future. I can assure you that the Government will do everything we can to relieve hardship and at the same time, we must be careful to avoid taking short-term action that will affect our longer-term prospect or in any way undermine our investors' confidence in Hong Kong. That's crucially important.

Reporter: Do you think there is any understanding in North America of just how bad the crisis or what one might call depression is coming up?

Mrs Chan: Yes, I think there is a very clear understanding. There is, of course, a great deal of concern and I was asked on several occasions whether the US-Hong Kong dollar link will remain or whether the Reminbi will be devalued. And I think these visits gave me a very good opportunity to explain our resolve and our total commitment to maintaining the US-Hong Kong dollar link and to explain that leaders in Beijing have reiterated time and time again that despite the current financial instability that Reminbi will not be devalued. I think there is a clear appreciation of the role that Hong Kong has played in providing a degree of stability. But clearly, we look to Japanese leadership to lead a revival in the Japanese economy and it is only on the basis of that that we will see Asian economy including Hong Kong's economy picking up again.

Acting Chief Executive's media session (chinese part)

End/Wednesday, June 17, 1998

NNNN