The Director of the Hong Kong Economic and Trade Office of the Hong Kong Special Administrative Region (SAR) Government, Mr Donald Tong, today hosted two major receptions in Toronto and Vancouver to celebrate the first anniversary of the establishment of the Hong Kong Special Administrative Region of the People's Republic of China.

About 1,200 wellwishers in total attended the two receptions at the Royal York Hotel in Toronto and the Waterfront Hotel in Vancouver.

During the receptions, a special message from the Chief Executive, Mr Tung Chee Hwa, was played on giant screens at both venues.

Mr Tung said that during the past year the SAR had experienced many challenges, chief amongst the unexpected was the financial crisis in Asia. "Nonetheless, Hong Kong has the strengths to ride out the storm with our established institutions of free market, rule of law, prudent fiscal management and robust regulatory systems."

"Hong Kong has experienced years of high property prices, high inflation and high wage increases. We are going through a period of economic adjustment which is painful but necessary if we are to remain competitive. There is an up-side to this challenge," he said.

"The downward adjustments to asset prices have led to a drop in housing and office rentals, which will ultimately help improve our competitive edge. Indeed, despite the turmoil around us, our strong financial reserve has enabled us to press ahead with our massive plan of investment in infrastructure, housing and education as we have originally planned."

Mr. Tung added: "While we in Hong Kong are moving forward with confidence, we are also mindful of the difficulties, and opportunities as well which lie ahead. Our community is working wholeheartedly together to turn our vision into reality and make our city an even better place as the new century unfolds."

In his welcoming remarks at the receptions, Mr Tong reiterated Mr Tung's message of confidence in the SAR's ability to recover from the economic downturn, adding that with the support of the motherland the territory will recover in future.

"Hong Kong has a resilient community which manages crises well. It is through experience in making regulatory changes and adjustments swiftly that we have been resoundingly successful."

Mr Tong also pointed out the package of measures announced recently by the Hong Kong SAR Government to smoothen the recovery of the economy, including the bringing forward of infrastructure developments to create 100,000 new jobs within the next 18 months.

Mr Tong told the gatherings that, apart from the financial turmoil, Hong Kong's transition was carried out smoothly under the "One country, two systems" concept. He said China has kept its promise by not interfering in the affairs of the SAR and it is business as usual in Hong Kong.

The anniversary celebrations first kicked off in Toronto during the afternoon. Among the dignitaries were Member of Parliament, Mr. Tony Ianno; Ontario's Education Minister, Mr David Johnson; Mayor of Toronto, Mr. Mel Lastman; the Consul General of the People's Republic of China in Toronto, Mr Zhou Xingbao; and Ontario's Police Commissioner, Mr David Boothby.

Later in the evening at the Vancouver reception, Mr Tong was joined by hundreds of prominent VIPs, including the the Secretary of State for Asia Pacific, Mr Raymond Chan; Premier of British Columbia, Mr Glen Clark; Mayor of Vancouver, Mr Philip Owen; Mayor of Richmond, Mr Greg Halsey-Brandt; and Consul General of China in Vancouver, Mr. Song Youming.

On Thursday (July 2), Mr Tong will host a reception to mark the anniversary at the Palliser Hotel in Calgary where more than 300 guests, including Senator Hayes, Minister of Education, Mr. Gary Mar; and Mayor Al Duerr, will be attending.

Apart from the receptions to mark the anniversary, the Hong Kong and Economic and Trade Office is holding three photo exhibitions at various major locations in Toronto, Vancouver and Calgary.

The one-month long exhibitions will highlight Hong Kong SAR's smooth transition under the "One country, two systems" principle, its achievements as an economic powerhouse in the region and the vibrancy of the metropolis. Photographs of the new Hong Kong International Airport at Chek Lap Kok, to be opened on July 6, will also be prominently displayed.