XN000022-1996-07-29 — Page 4

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He said economic development in the past three decades had dramatically improved the welfare of hundreds of millions of Asian men, women and children.

"This record of sustained economic growth and close to full employment for most of this period have been essence of our rising standard of living."

Mr Tsang said improved public services in the form of subsidised housing, health care and education, as well as improving social welfare provision, had helped improve Hong Kong people's quality of life.

"In the past five years, we have increased expenditure on social welfare by 65 per cent in real terms.

"We are specially fortunate that we can afford to devote additional resources to our social welfare services without putting a strain on our budget or pressure on the

taxpayer.

"I believe we have struck a constructive balance between helping those in need and doing so in a way that we can afford, in a way which supports rather than undermines the dignity of the people receiving help, and in a way which discourages any long-term dependency on public assistance.

"Hong Kong is certainly not a welfare state. Nor is it slipping and sliding in that direction. Our public expenditure controls will make sure that never happens."

He said in social work as in all else it does, Hong Kong is forward looking and optimistic in its approach.

"Our society continues to change at a quite breathtaking rate, we are constantly reviewing what we have done and what we will need to do. None of this will stop in 1997 when sovereignty changes."

Mr Tsang said the Joint Declaration provides for the continuation of Hong Kong's present free market, free speech and way of life.

"I, and the people of Hong Kong know that we shall have to rise to the challenge of the Joint Declaration and the Basic Law.

"This community continues to have faith in its ability to shape its own future and its government has gone on governing and making massive long-term investments upon which Hong Kong's future success will depend.

"This is not a community which has lost faith in itself or in its future. Ours is not a government which has been paralysed by doubt or indecision."

End