Economic growth in the Hong Kong Special Administrative Region (SAR) of China will not be severely stunted despite the financial turmoil which took a heavy toll on many southeast Asian countries, the Director of the Hong Kong Economic and Trade Office of the SAR Government, Mr Donald Tong, said today (April 23).

Speaking to businessmen, community leaders and academics at a dinner in Vancouver organised by the Hong Kong Canada Business Association, Mr Tong said the territory's growth rate in the 1998-99 financial year is expected to be 3.5 per cent.

"We are not denying that times are difficult, but Hong Kong is better placed than other Asian countries to weather the present downturn," he said.

"In 1997/98 financial year which ended on March 31, we had a record budget surplus of C$14 billion, more than double the surplus forecast at the beginning of 1997.

"As for the current financial year, our Financial Secretary has forecast a surplus of C$2 billion.

"Our solid economic foundation, strong fiscal reserves, no government debt as well as sound banking and financial practices are the principle factors that will help us to sustain our growth forecast," he said.

Citing another example of Hong Kong's confidence in its economic future, Mr Tong pointed out that the territory is embarking on a massive infrastructural development in the next four-and-a-half years.

Costing an estimated C$43.5 billion, these projects which include new highways, subway extensions and a complete new railway to serve west Kowloon, port development and housing estates, will stimulate economic growth and create more jobs.

"These developments will be of a much larger scale and far exceeds the C$29 billion invested on our new international airport and its related Airport Core Programme projects," he said, adding that the state-of-the-art airport will be opened on July 6 and operate round-the-clock.

Mr Tong gave an assurance that the SAR Government will not backout from its commitment in spite of the uncertainty in the region. There are ample opportunities for Canadian companies wishing to take part in these projects, he said.

Apart from infrastructural development, there are also prospects for Canadian businessmen to participate in projects involving information technology, biotechnology, environmental technology, telecommunications and in the supply of building materials.

Stressing that Hong Kong SAR practises level-playing field in assessing and awarding of contracts, he cited the new airport projects as an example, pointing out that 77 per cent by value of the C$17 billion construction contracts were awarded to overseas firms. "All our actions are transparent, open and fair to both local and overseas players."

During his address, Mr Tong also gave a wide-ranging account of Hong Kong's other developments, including upgrading the standard of English with the recruitment of 750 native-speaking English teachers from overseas, and the first SAR elections to be held on May 24.

He added that in the 10 months since the return of Hong Kong to China nothing much has changed because the SAR continues to run its own affairs. "Our lifestyle remains the same, the media are not silenced and protests in streets are daily occurrences just like before July 1997. These are guaranteed and enshrined in the Basic Law," he said.