Despite the recent financial and economic crises which swept many southeast Asian economies, Hong Kong's position as the key international financial, trading and business centre in the region has been strengthened, the Director of the Hong Kong Economic and Trade Office of the Hong Kong Special Administrative Region (SAR) Government, Mr Donald Tong, said on Febraury 26.

Speaking at a luncheon organised by the Mount Royal College in Calgary, a major Canadian City in Alberta province, Mr Tong said Hong Kong's political stability, sound economy and dependable and freely convertible currency have provided a measure of certainty in a region beset by uncertainties.

Those attending the luncheon included the President of the Hong Kong Canada Business Association, Mr Richard Gotfried;

"Hong Kong's unique position is bolstered by the fact that we have the mainland of China as our economic hinterland -- an economy which grew by around nine per cent in real terms in 1997 and with little spillover effect from the regional crises, China's economy is expected to grow by about eight per cent per annum up to the year 2000," Mr Tong said.

He gave an assurance that the SAR ,which has been administering its own affairs since the return of sovereignty to China last July , will continue to improve on its premier position as the gateway to China.

"We have absolute confidence in managing our future under the "One Country, Two Systems" concept," he said, noting also that recently the US Heritage Foundation has named Hong Kong as the freest economy for the fourth consecutive year.

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 said.

"The peg has been the key factor in the stability of the Hong Kong dollar since 1983, and coupled with our greatly improved market regulation and supervision, it has enabled us to become one of the world's leading financial centres.

Mr. Tong admitted that the unwavering stance taken to protect the peg had brought about short term problems, such as increases in interest rates, but with a solid economic foundation, a huge fiscal reserve and a sound financial and monitoring system, Hong Kong is confident that it will be among the first - if not the first - to rebound.

Mr. Tong dismissed speculations that the Renminbi will be devalued because, he added, it is not in China'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 underground railway and conventional rail system;
� upgrading the teaching of English in schools with plans to recruit 700 additional native speaking English teachers from overseas;
� 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 two decades.