2
She said as the interest in Hong Kong mounted, so did scepticism in some quarters.
"The heightened interest in Hong Kong is both a reflection of what is happening in Hong Kong and a growing realisation that Hong Kong matters a great deal to the world.
"I am neither starry-eyed about Hong Kong's future nor do I believe in total despair. We have to recognise the problems and face up to them.
"My message to you is that one can do that and still be positive about the future," said Mrs Chan.
To back up her faith in Hong Kong, she highlighted the guarantees given in the Joint Declaration and the Basic Law and the issues that had been resolved through the shared commitment by Britain and China.
In addition, she also noted the well-established institutions of Hong Kong, including the rule of law, the open economy of the territory, its legal and judicial system and the highly professional, loyal and corruption-free civil service, which are fundamental to maintaining Hong Kong's way of life.
She said the most difficult issue facing Hong Kong in the remaining days of the transition was the legislature because of the fundamental difference in the position of the British and Chinese sides.
"All eyes will be on China in the coming months - on how it will go about ensuring that Hong Kong has a credible truly representative legislature after 1997, consistent with the Basic Law and which will command the support of the Hong Kong community and of the international investing public," she said.
The Chief Secretary expressed her wish that Hong Kong could rely on the British business sector's support to maintain its unique formula for economic success far into the next century and to make a success of the remaining period of transition to 1997.
Above all, she added, it was the support needed for Hong Kong to respond positively to the new opportunities which China's modernisation was creating, not just for the Chinese people but for the entire world economy.
End