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Following is a transcript of the press conference by the Chief Executive, Mr Tung Chee Hwa, in Wellington, New Zealand, today (Thursday)
Introduction (Mr Don McKinnon, Minister of Foreign Affairs and Trade): Well ladies and gentlemen of the press gallery and other media that are here. I am very delighted to introduce to you the Chief Executive of the Hong Kong Special Administrative Region, Mr Tung Chee Hwa whom you have heard a lot about no doubt. Mr Tung Chee Hwa has had the opportunity of meeting with the Prime Minister and myself and others. We are very delighted to welcome him to New Zealand. We have had the opportunity to discuss what one would say is a wide range of issues covering bilateral arrangements, APEC arrangements, multi-lateral trade activities, various financial aspects between Hong Kong and New Zealand, the recognition of the number of Hong Kong people that are in New Zealand, of course the number of New Zealanders who work and live in Hong Kong. We have certainly followed very intimately, of course, the changeover, one of the more dramatic events which has occurred in this region for some time and just how successful it has been. We are delighted he's been able to come to New Zealand for a couple of days. It's him getting to know us, us getting to know him and the kind of things that are happening there. And of course, we have also been discussing aspects of the general turmoil in East Asia at the present time and all looking at crystal balls as to where it is all going. So I will invite the Chief Executive of the Special Administrative Region to say a few words to you and then I'm sure he will answer some questions. Mr Chief Executive.
Mr Tung: Thank you very much Minister. I am delighted to be here in Wellington. I've had a very useful and eventful visit so far. I'm grateful for the hospitality and warmth of the reception here in New Zealand. I have had the opportunity to meet the Prime Minister, to meet Mr McKinnon and a number of other senior ministers. The discussion has been useful. As Mr McKinnon said that Hong Kong and New Zealand does have a very important bilateral relationship. Three thousand New Zealanders live in Hong Kong, tens of thousands from Hong Kong have made New Zealand their home and thousands are studying here in New Zealand who are students from Hong Kong. So it is not just trade and investment which obviously is very important but also a very important people's relationship between Hong Kong and New Zealand. And I'm glad we have had a chance to discuss all these issues. I am particularly pleased with the announcement for visa-free arrangement for visitors from Hong Kong to New Zealand. This is a great help to Hong Kong, coming particularly soon after the return of Hong Kong. We also had an opportunity to discuss, to share our experiences about the Asian financial turmoil, what it is doing to Asia, what it is doing to us particularly in Hong Kong. I also had the opportunity to explain how well we are doing in Hong Kong in so far as the successful implementation of 'One Country, Two Systems'. It's been almost one year since Hong Kong returned to China and 'One Country, Two Systems' is being very successfully implemented in Hong Kong. So all in all, although it's a very short visit it's a very useful visit and I thoroughly enjoy the visit and I know my colleagues and I will take back fond memories of New Zealand as we go back to Hong Kong tomorrow. Thank you very much.
Reporter (Bloomberg): Do you think the rebound of the Yen is sustainable?.
Mr Tung: I think, obviously we are pleased with the rebound of the Yen. I think that there was a very serious statement which was issued yesterday by the Minister of Finance of Japan outlining the determination with which Japan is going to tackle reforms and so on and so forth and I would hope this would be a sustainable effort and the Yen should be stabilised. It will be a good thing for the whole region, thank you.
Reporter (Bloomberg): Including for your own currency?
Mr Tung: Obviously the stability of the Yen is important to Hong Kong. The stability of the Yen is important to every country around the world because after all it is the second-largest economy in the world.
Reporter (TVNZ): In reports coming out of Australia this week you were saying that Asia had not seen the worst of the economic crisis and the next few quarters would be a lot worse for the countries throughout the region. Is that still your view?
Mr Tung: I think the Asia financial turmoil, the impact of the turmoil is really quite serious so let's not underestimate the impact the difficulties that many of the nations and communities in the Asia-Pacific region will face. It will be difficult for a number of quarters to come, I've made reference to that particularly with regards to Hong Kong but let's not underestimate our own strengths because in Asia we have a lot of strengths. We have a very flexible and hard-working labour force, willing to accept new ideas, an indomitable spirit to succeed, very high savings rate, willingness to take on new technology and new ways of doing things. And yes, we are going through a difficult period but our strengths are still there but once our structural weaknesses are adjusted we will be able to rebound and rebound rather quickly.
Reporter (TVNZ): Can you give us a time frame for that rebound?
Mr Tung: I said the other day and economist wouldn't give you one time frame, nor would a politician. I'm sorry.
Reporter (Capital Chinese News): The democratic movement in Hong Kong and its relationship with Mainland China. Is there any likelihood that there may be some interference to water it down, or ideology that may tend to water down the development of the democratic movement?
Mr Tung: Well the political evolution, the process of political evolution in Hong Kong is very clearly defined in the Basic Law, defined very clearly by the Basic Law, which is our constitution which defines very clearly how a Chief Executive would be chosen and how a legislature would be chosen, and the number of directly-elected seats will increase every time there is a Legislative Council election. But these are very clearly defined and we will go by the Basic Law and the Basic Law does say that after 10 years the Hong Kong people will have the opportunity to look at it for ourselves as to how we want to go forward. The Central Government of the People's Republic of China is very accommodative and very determined to uphold the Basic Law so we will go forward in accordance with our Basic Law.
Reporter (NZ reporter): Hong Kong has decided to accelerate some of its infrastructure spending in response to the Asian crisis. Why have you decided to push ahead rather than to cut spending?
Mr Tung: It is not a question that we decided to accelerate the infrastructure spending. What we have done is looking ahead, in order to make our community more competitive, a better place to live. We will need to commit ourselves to massive infrastructure projects whether it's railways, highways, schools, information technology, projects that relate to making our society a better place to live, therefore involving environmental issues. So these are all the things we need to do make Hong Kong attractive and more competitive these have been planned out and we are moving ahead with these massive projects as we had planned them out. The good news is that we have the financial means to do it, despite the slowdown in the economy we have the financial means to do these things. Of course at the same time these projects will stimulate the economy as we invest more and more into these projects. But, no, we are going ahead despite our difficulties all around us, we are very focused on our future. We know what we want to do in the future, we are not being derailed by the financial turmoil.
Reporter (Dominion Newspaper): (Question on how severe the Asian backlash has been against Western triumphalism over the financial problems in East Asia).
Mr Tung: That's a very difficult question. I think the important thing for us to recognise is that, and the most important thing for us to recognise is that if you are referring to speculators coming to attack one's currencies, I think the important thing to remember is that we need to be structurally very sound and there are now weaknesses that's there for people to attack us. And I think that is the most important thing, so certainly in Hong Kong we are trying to address these issues. Over the last few years very high property prices and very high inflation have created a bubble economy which need to be corrected anyway, so as it is being corrected it is painful for us but we look at it this way - if there are weaknesses to be corrected there is no use to blame anybody else, just get on with it and we come out better and stronger.
Reporter (RTHK): Some of the legislators have expressed concern about a statement by the Financial Secretary yesterday that there is going to be less money available (inaudible) which will affect public spending. Can you tell us what sort of impact this is going to have on spending on medical and welfare services in Hong Kong?
Mr Tung: Well I think it is a very early stage of preparation of the next Budget. I think what want we want to do is to maintain, continue to maintain where is necessary a very prudent fiscal policy which has been a hallmark of our past success and we will not deviate from that. On the other hand, we have to balance the needs of our community and I am sure we will be able to come up with a sensible solution at the end of the day so let us not begin to speculate too early.
Reporter (NZ reporter): You've had some rave reviews abroad but at home some people, some legislators have criticised you for not leading from the front in Hong Kong. What's your reaction to that?
Mr Tung: Well Hong Kong is a very open community. Everybody can say their piece and I am delighted people constantly remind me what I should be doing. But I have to do what I think is right in the long-term interests of Hong Kong people and I will continue doing that. But at the same time I want to assure you I keep on listening to everybody.
Reporter (RTHK): What is your response to calls for land auctions to be halted because of lack of demand at the moment?
Mr Tung: As I have said earlier on in Chinese as the government we feel that price stability of the property market is very important at this stage. We do not wish to see further deterioration at all. As to what specific measures needs to be taken this is being very carefully studied by my colleagues in the government and at an appropriate time we will make it known to everybody. I do not wish to specifically comment on this particular issue at this time.
Transcript of Chief Executive's press conference (chinese part)
End/Thursday, June 18, 1998
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