Hong Kong's institutions of civil society have remained not just intact but vibrant since its return to Chinese sovereignty 18 months ago, according to Mr Donald Tong, Director of Hong Kong Economic & Trade Office in Canada.

Speaking to journalism students at the Regina University in Regina, Saskatchewan today (Friday), the representative of the Hong Kong Special Administrative Region Government said Hong Kong's political transition "has simply been plain sailing."

He said the principle of "One Country, Two Systems" developed by China is working extremely well. "Hong Kong people are running Hong Kong, and we are exercising our rights and freedoms as we have always been before the handover."

"I know you must be particularly concerned about the preservation of freedom of press in Hong Kong," Mr Tong said to the students. "I can assure you that the press is very much alive, indeed in my own view much more vibrant than before in Hong Kong. You can hardly come across a day without criticism of our Government. The administration is under as much scrutiny now as it ever was, perhaps more so today."

Mr Tong said the media in Hong Kong continues to report developments in China and "sometimes taking a very critical or negative view" on Chinese Government without fear. Developments in Taiwan continue to be reported without intervention.

"There is much talk about self-censorship but this is something that we disapprove and we will do everything possible to preserve an environment conducive to maintaining a free press in Hong Kong," he said. "We also understand just too well that some foreign investors have chosen Hong Kong as their regional offices because they enjoy free flow of information and various sort of freedoms in Hong Kong."

The European Commission in its first annual report on Hong Kong found "basic right, freedoms and autonomy have been broadly upheld." The report concluded that a high degree of freedom had been maintained in human rights, political freedoms and public order. The United Kingdom and the United States Governments in their reports on Hong Kong also concluded that China has given Hong Kong autonomy and freedoms as promised in the Basic Law, Hong Kong's mini constitution.

Updating the journalism students on Hong Kong's economy after the Asian financial crisis, Mr Tong said even though the economic adjustments will continue in 1999 which remains a difficult year, there are some positive signs recently, including the lowering of interest rates and stabilization of property and stock prices.

"The Asian financial turmoil has merely hastened the pace of the much-needed adjustments," he said. "These economic adjustments are certainly a very welcome sign to overseas investors who previously have avoided Hong Kong because of the high operating cost."

Mr Tong said that Hong Kong has maintained its position as the second most competitive economy by the World Economic Forum, and the freest economy by the Heritage Foundation, and a group of economic institutes from 54 economies, including Canada's Fraser Institute.

Hong Kong's GDP for 1998 as a whole is forecast to contract by 5 per cent in real term, but Mr Tong is quite sure that Hong Kong could sail across the rough waters again.

• Hong Kong is China's major entreport for world trade and a pre-eminent source of debt financing and market capital for Mainland ventures. With the reunification, Hong Kong obviously stands to gain even further advantages from the continuous growth of China.

• Hong Kong continues to invest in its physical and human infrastructure so as to keep pace with projected population growth and economic development. Hong Kong is now investing C$47 billion over the next four years in railways, highways, schools and residential developments. More than C$50 billion will also be spent on education, especially on primary education and language training in the next five years to ensure that the territory's workforce remain competitive and efficient.

• Hong Kong will increase the diversity of its economy by encouraging the development and application of technology and innovation in all sectors, with particular emphasis in information technology and telecommunications. These would help broaden the base of the territory's economy.

For further information, please contact Mr Frank Chuan, Chief Information Officer, or Mr Stephen Siu, Senior Information Officer, at Tel: (416)924-5544.