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Following is the English portion of the transcript of the media session by the Chief Executive, Mr Tung Chee Hwa, at the Central Government Offices this (Friday) afternoon.

Mr Tung : I will begin my summer holidays tomorrow. On 20th of July, I will be spending a few days in San Francisco and also in Silicon Valley. When I am there, I will be meeting leaders in field of politics, commerce and industry. We will be exchanging views about the possibility of increasing trade and investment. I will also be able to explain to them the latest development of Hong Kong. One of the main focus of my visit will be the visit to Silicon Valley where I hope to be able to introduce to technology companies and to those people who are involved in innovation and technology what we are doing in Hong Kong and the completion of work by the Commission of Innovation and Technology. Because the Commission had mapped out a new direction for Hong Kong and this new direction has gained wide degree of acceptance both in Hong Kong and overseas particularly by the people who are involved in innovation and technology. Hong Kong has been affected obviously by the Asian financial turmoil and our economy structure is going through some restructuring. We will be relying on the traditional areas of our strength to drive our economy forward but this may not be enough and we believe very much that innovation and technology will be a new driver for our economy as we move forward. The fact is that if you look at America, the economy is moving very well. And one of the reasons is that they have moved very successfully in the area of innovation and technology. Eighty per cent of Americans' growth in GDP is attributable to innovation and technology. I'm very much confident and the whole Government know that innovation and technology will be a new driving force for our economy as we move forward. While on the subject of the economy, I also want to mention that our IT industry is really moving very fast - growing at about 23% per annum. In fact employment opportunity in that area is very good and the remuneration package is also quite attractive. It proves the point that innovation and technology is really moving forward very well. Talking about the economy I do want to say that the latest figures all indicate that the economy is settling down. Recovery seems to be on the horizon and I hope these figures will bear out in coming months and that beginning next year our economy will be really in a growth path. After I complete the visit, I will be spending a few more days as holidays in Northern California and I will come back to Hong Kong in early August.

Thank you very much.

Reporter : You talked about the cross-Straits relations and what would be the impact on Hong Kong?

Mr Tung : I have said this in Chinese already but I would repeat that. I think a one-China policy is the very foundation of discussion moving forward between the parties involved. And that this particular one-China policy is actually very much accepted internationally as well as by Chinese people everywhere, on the mainland, in Taiwan, overseas and in Hong Kong. That's why what Mr Lee Teng Hui said the other day was unfortunate, unwise, because I believe the reunification of the entire country is something that is going to happen and that cannot be stopped. Obviously the tension is worrying for all of us, but I think it is important to bear in mind that reunification of our country, ultimately, is very very important to all of us.

Chief Executive's transcript at CGO (Chinese)

End/Friday, July 16, 1999

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