stablishing good personal relations with Chinese leaders, and to visiting Peking before long.

In tackling the challenges of the next five years, I

believe that the Executive Authorities should give a clear lead. I shall rely heavily on the wisdom of the Executive

and Legislative Councils, and on the support of Hong Kong's

outstanding Civil Service. But if policies are to serve the

interests of the whole community, they must take account of

the widest possible range of views. The Government I lead will be open to the whole community, and accountable to their representatives.

I am very conscious of the hard work done by those who represent the people of Hong Kong in the District Boards, the Municipal Councils and the Legislative Council. These representative bodies have grown up gradually, reflecting the society they serve. It is very much in Hong Kong's

interests that they should remain vigorous, respected

because they are effective, and capable of evolving

further in the decades ahead.

It is

Hong Kong has built itself into a great and thriving city through openness to the markets of the world: quick to respond to changes in demand, quick to innovate. vital that we preserve that spirit. Hong Kong's businessmen

and industrialists create the wealth which has made Hong

Kong a centre of excellence and enterprise in Asia. The policies of the Government should encourage them and the interlocking with the economy of Guangdong Province which they have pioneered. We should press ahead with the new airport project, in the most cost-effective way possible. We should also continue the fight against inflation, which could otherwise price Hong Kong's goods and services out of

world markets.

Amid the affluence of the Central District, we should

also bear in mind the needs of the less successful.

BE1AAN/2

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