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"The free flow of information and ideas is fundamental to the function of a free

"That must continue if we are to enjoy our pre-eminence as an international, financial, trading and telecommunications hub in the region.

"The very presence of the world's media and its requirements to operate in an unfettered way is one important way of underwriting those guarantees," she stressed.

Hong Kong has a free and prolific press, one of the freest in Asia, with 59 daily newspapers and all of the great international news organisations having a presence in the territory.

On legislation, Mrs Chan noted that the Bill of Rights Ordinance protects the freedom of opinion and expression in Hong Kong.

Since its implementation of the ordinance in June 1991, the Government had comprehensively reviewed all existing laws and had repealed or amended those that inhibited press freedom or freedom of expression, Mrs Chan told the audience.

"Our objective is to ensure all our laws are fully compatible with the Bill of Rights Ordinance and the International Covenant on Civil and Political rights which will continue to apply to Hong Kong after 1997," she added.

However, Mrs Chan was quick to point out that a proper balance had to be struck between guaranteeing press and personal freedom on the one hand and protecting privacy, national security, public order, public health and morals on the other.

reform.

"We remain committed to tackling the remaining issues through legislative

"But bringing the law up to date and ridding it of bogeymen, as important as that is, cannot on it own solve the problem."

The Chief Secretary called upon all Hong Kong people, especially proprietors, publishers, editors and journalists, to have the courage and belief in themselves to stand up

for the freedoms which had been promised to them.

In her speech, Mrs Chan also highlighted the crucial and close links between Hong Kong and Australia and the importance of Hong Kong's successful transition to Australia.