As a result of globalization, the advent of the knowledge-based economy and rapid economic development in the mainland, Hong Kong is undergoing economic restructuring, Tung said, adding that the slowdown of the external economy makes this an even greater challenge.

The immediate priority of the Hong Kong SAR government is to promote economic growth, to create job opportunities and to look after those who are less privileged, he said.

Tung called on Hong Kong people to have confidence in facing challenges. He noted that Hong Kong's confidence stems from its unique advantages such as its strategic location, business-friendly environment, well-established pool of professional services and talents, rapid development of the country.

Other advantages include Hong Kong's position as an international financial center and a center for trade, logistics and tourism. "Our task is to strengthen and to realize the full potential of all these advantages," he said.

Tung stressed that Hong Kong's greatest advantage comes from the strong support of Chinese mainland and the new opportunities brought by the rapid developments in the mainland.

With the Central Government acceding to Hong Kong's request to relax the Hong Kong Group Tour Scheme, the number of mainland visitors traveling to Hong Kong has increased very significantly, he said.

Admitting that economic restructuring will take time, Tung asked citizens not to lose heart. Hong Kong has all the prerequisites necessary for its success, such as political stability, a sound legal system, well developed social and economic systems and a business-friendly environment, he said.

Tung asked Hong Kong citizens to strengthen and realize the city's potentials, maintaining confidence in themselves and in Hong Kong.

(China Daily February 12, 2002)