The Director of the Hong Kong Economic and Trade Office of the Hong Kong Special Administrative Region (SAR) Government, Mr Donald Tong, today (April 16) outlined the SAR Government's massive programme of infrastructure projects following the return of Hong Kong to China last July and a commitment to sustain the territory's vibrancy and status as an economic powerhouse of Asia.

In a luncheon address in Winnipeg, the capital of Manitoba Province in Canada, Mr Tong also projected a vivid picture of the latest developments in Hong Kong to the audience, comprising business and community leaders and academics.

He pointed out that despite the recent financial turmoil which took a heavy toll on many southeast Asian economies, Hong Kong's position as the key international, financial, business and trading centre in the region had been relatively unaffected.

"If you look around elsewhere in the region, I think you will agree that Hong Kong is in a much better shape than most of the economies whose currency has depreciated in double digit percentage figures, while our dollar depreciated by only 0.03 per cent," Mr Tong said.

He stressed that Hong Kong's solid economic foundation, strong fiscal reserves as well as sound banking and financial practices are the principle factors that will help Hong Kong recover sooner than most its neighbours.

Turning to recent speculation on US-HK dollar linked exchange rate, Mr. Tong told the audience that the 14-year link had weathered many financial crises in the past. It has become a symbol of economic stability and confidence in Hong Kong as a major international and financial centre.

"Delinking will damage Hong Kong, and cause further damage to the regional economy," he warned.

Mr. Tong also dismissed speculations that the Renminbi will be devalued because, he added, it is not in China's nor Hong Kong's economic interest to do so.

During his address, Mr. Tong also gave a wide-ranging account on Hong Kong's present and future developments, including:

� the opening of world's latest state-of-the-art airport at Chek Lap Kok on July 6;

� further expansion of the container port, already the world's busiest;

� major expansion programmes for the subway system and conventional rail system;

� upgrading the teaching of English in schools with plans to recruit 700 additional native-speaking English teachers from overseas, including Canada, by September 1998;

� the first SAR elections to the Legislative Council will be held on May 24; and

� Hong Kong remains one of the safest cities in the world with the 1997 crime figures being the lowest in 24 years.