XN000022-1996-11-25 — Page 2

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FS's statement at APEC Economic Leaders Meeting

Following is a statement (English only) by the Financial Secretary, Mr Donald Tsang, on the inclusion in a time capsule sealed at the meeting of APEC Economic Leaders in Subic, Philippines today (Monday):

Three and half centuries ago, the philosopher Francis Bacon declared there were four pillars of government: religion, justice, counsel and treasure.

Hong Kong treasures four pillars, too: the rule of law, level playing field, corruption free government, and the free flow of information.

The rule of law means simply that our society operates under laws that are published for all to see and understand. People know pretty well what they can and cannot do in all spheres of life. They also know that these rules apply equally to everyone in the community. That was what Bacon meant by "justice" in the early 17th century and it remains so as I write late in the 20th.

Free enterprise on a level playing field forms the second pillar. That means the freedom to do business, protected by fair and equitable laws, and in an open market. Under the terms of the Basic Law that will pertain in Hong Kong. China recognises the importance for business of clear, reliable laws, especially the law of contract that helps to ensure people keep their word.

These activities take place under and within a civil administration that is honest, efficient, and the minimum practicable size. Hong Kong's public sector spending is about 18 per cent of its GDP - a remarkably low figure in the world's eight largest trading economy. Our civil service is generally untainted by corruption and we work hard to keep it that way. Economies in this part of the world are booming, and some people may be tempted to seek more than their fair share of the wealth we are creating. Corruption, like cancer, destroys the body from within, eating away unseen until it is too late.

That is what makes the fourth pillar so important: freedom of speech and a free flow of information. This is often described as "freedom of the press" but it relates to most business activities as well, since it is impossible to plan confidently when information is deliberately withheld from the market. A free and active news media operates like chemotherapy against the cancer of corruption. Sometimes there may be side effects that we do not welcome but these must be endured to achieve the aim of restoring a whole, well body.