Following is the transcript of remarks by the Chief Executive, Mr Tung Chee Hwa, after a meeting with the German Chancellor Helmut Kohl in Bonn today (Monday, HK time).

I spent a very useful morning in Bonn. I just had a very engaging and interesting discussion with Chancellor Kohl.

We talked about how the 21st Century world would be like. The Chancellor emphasised the importance of a strong relationship between China and Germany and also emphasised the importance of the relationship, a good relationship, between Hong Kong and Germany.

We also discussed the current financial turmoil in Asia, how it has impacted on Hong Kong. I have explained to him my confidence, first that the linked exchange rate will stay and that we continue to march forward into the future with a great deal of confidence.

We have also discussed a number of issues as to how to strengthen further the commercial relationship between Hong Kong and Germany. Both of us were particularly pleased to note a very high degree of confidence of the German businesses in Hong Kong after July 1st.

We also took the opportunity to discuss the issue of visa-free entry, and the Chancellor said he would look into it further.

All in all it was a very useful discussion.

Earlier on in the morning I had an opportunity to meet two leading think-tanks in Bonn and we had a very extensive discussion on the issue of the currency turmoil in Asia as well as how Hong Kong is coping with it, how well Hong Kong is coping with it. I also expressed a very strong belief that the Renminbi will not be devalued as I said that Hong Kong's linked exchange rate to the United States Dollar will stay.

We find all these discussions very, very useful particularly since it is the first time we are in Germany after the return of Hong Kong.

Reporter (RTHK): Can I just follow up on that comment that you made before your departure from Hong Kong on the question of subversion. I want to ask very specifically whether the government has yet started work on the Basic Law Article 23 laws, when you intend to bring these laws to LegCo and whether you intend to consult the public on them.

Mr Tung: First of all let me say this, that for any territory, national security is an issue that has to be considered. Secondly, that Article 23 of the Basic Law will, after consultation with the people of Hong Kong, be introduced in to the legislature to be enacted into law. And thirdly this will be done after the election of May 24th, after the first legislature has come into being. As to the precise time, I don't have it yet.

Thank you very much.

Transcript of the Chief Executive (Chinese part)