The Director of Hong Kong Economic and Trade Office of the Hong Kong Special Administrative Region (SAR) Government, Mr Donald Tong, today (March 11) said that civil liberties in Hong Kong, including freedom of speech, assembly and the press continue to flourish without any restriction.

Speaking to students of journalism at the Carlton University in Ottawa, Mr Tong said, these liberties are enshrined in the Basic Law.

He pointed out that criticism of the Hong Kong SAR Government by the media and public demonstrations in the streets still take place daily, like before July 1997.

"What is encouraging is that China, although not a signatory to the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights, has agreed to forward Hong Kong's reports on the implementation of these two covenants to the United Nations in August 1998," Mr Tong said.

"This is a clear gesture by China to prove to the international community that the freedoms and rights of Hong Kong people will be protected.

"Also, a recent report by the US House Task Force on Hong Kong Transition concluded that the press and media continue to be open, free and full of criticism and analysis of both the Hong Kong and Beijing governments, and that journalists continue to cover the news much as they did before July 1, and have no hesitancy in voicing views not welcome by Beijing.

"In a six-monthly report to the UK Parliament in January 1998, the UK Foreign Secretary Robin Cook also admitted that developments in Hong Kong have been encouraging and that the people of Hong Kong retain a free and dynamic press.

"Another proof of Hong Kong's way of life has been preserved comes from a US State Department Report on Human Rights in Hong Kong issued at the end of January 1998, which also reaffirmed that there has been no substantial change in Hong Kong since the transition."

During his discussion with the students some of whom are post-graduates and working journalists, Mr Tong stressed that Hong Kong continues to manage its own affairs, including complete financial autonomy, independence of its monetary system and maintenance of direct links with international community on matters concerning trade and bilateral issues.

As an example, the Director pointed out that the Hong Kong administration --without any interference or advice from China -- fought off speculations on the Hong Kong dollar which is firmly linked to the US dollar under the currency board system.

He reiterated that Hong Kong will not abandon the HK-US dollar link because it will cause grave uncertainty, undermine investment sentiments and confidence, damage Hong Kong and cause further regional turmoil. Hong Kong has a hugh reserve of US$98.1 billion - the third largest in the world and no foreign debt. And Hong Kong is fully capable of maintaining the link.

"The linked exchange rate 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," he added.

Mr Tong said despite uncertainties in Southeast Asia, the 1998/99 Budget released recently by Hong Kong's Financial Secretary, Mr Donald Tsang, revealed that there was still a 5.2 per cent real growth last year while inflation stood at 5.8 per cent during the same period. Unemployment was about 2.5 per cent.

Despite the financial turmoil, Hong Kong expects a real growth of 3.5% and a reduced inflation rate of 5% this year. To sharpen our competitive edge and to bring relief to Hong Kong citizens who are affected by the upheavals, the budget proposed tax concessions (e.g. reduction of corporate profits tax to 16%) and a series of measures such as continuing to invest in housing, education and infrastructural development.

"With the economic growth in the Mainland of China expected at eight per cent this year, and the ongoing economic reform, Hong Kong which serves as a gateway to doing business with or in China will certainly stand to benefit. This will in turn help us ride out the storm much quicker than our neighbours," he said.