Following is the translation of the full text of the letter from the Chief Executive, Mr Tung Chee Hwa, broadcast on RTHK's Radio 1 this morning :

Dear Mary,

Thank you for your letter. I really appreciate your care and concern for me and Hong Kong.

As you have mentioned, the Asian financial turmoil has dealt a hard blow to Hong Kong's economy recently, putting Hong Kong to the severest test it has ever experienced. Hence, deriving measures to cope with this unexpected challenge has been a task of utmost priority for me and my colleagues over the past few months.

People tend to become pessimistic and lose confidence in adverse circumstances. As you know, I always say that it is important to cast your worries aside and be positive at times of adversity. Once the storm is over, we will become stronger and more capable. This enterprising spirit is what Hong Kong needs at the moment. In fact, we have upheld this spirit all along. By bringing the enterprising spirit into play, we will surely be able to weather the storm and enjoy blue skies.

Recently, although the development of events in Indonesia has yet to become clear, the financial situations of other Asian countries have gradually stabilized. I very much hope that the most difficult time is over. Our economy has a truly solid foundation. Hence, once the financial situations of our neighbouring economies become stable, our economy will recuperate very quickly.

Over the years, our economy has been plagued by problems such as soaring property prices, high inflation and negative interest rates. Unless we take steps to rectify them, the growth of our economy will be seriously impeded. When the present readjustment of our economy is completed, Hong Kong will stand even stronger than before and will scale new heights at a steady pace.

The Government is duty-bound to relieve the public of their plight at times of economic depression. In the next four and a half years, we will invest $235 billion in infrastructural development, with a view to stimulating economic growth, raising the competitiveness of Hong Kong, increasing land supply and providing more job opportunities. This amount exceeds by a huge margin the sum of $155 billion which we have invested in the new airport over the past seven years, indicating that infrastructural projects to be taken up in future will be of a much larger scale.

We will definitely hold fast to the principle of prudent financial management. However, we will also take all possible steps to help pull the public out of their present plight. In the next financial year, we will adopt appropriate measures, where possible, to ease to varying degrees the burdens of the people.

The financial turmoil has dealt a great blow to our property market, causing property prices to drop abruptly. Should this phenomenon continue, our banking system will be affected. In such circumstances, stabilizing property prices is of utmost importance to our economy. We have recently reiterated to the public that the Government is determined to implement the long term housing policy. For private sector housing development, the Government will launch the land sales programme flexibly. On the other hand, we will certainly secure a sufficient supply of public sector flats and provide financial assistance to potential home buyers, with a view to meeting the demand of the general public. In addition, we will strive to develop and form more land and to boost our land reserves in a proactive manner so as to ensure that property prices remain stable. By doing so, we can look after the long term interests of the general public as well as reduce the volatility of the property market, thus ensuring a steady development of our economy.

When you last came back from New York to see us, I told you I was particularly concerned about the housing problem in Hong Kong. 'A comfortable home and a satisfactory job' is what we, the Chinese, always long for. On the first day of the Lunar New Year, I visited two families, the Chans and the Lams in the public housing estates in Ma On Shan. Each of the families has two lovely daughters and lives in a flat of 400-odd square feet. They told me they were happy with the Government's proposed sale arrangements under the 'Tenant Purchase Scheme' and intended to purchase their units from the Housing Authority. It has taken my colleagues much effort to draw up this Scheme. I am very pleased to experience such an enthusiastic response from the public.

I remember that I sought your advice before making the decision to contest the office of Chief Executive. You gave me great support. You know I am a person who adheres to principles and I also have my own belief. Since assuming office, I have held firmly to three values. Firstly, Hong Kong must be a caring society and the Government must work for the long term benefits of the people. Secondly, our policies should give more weight to enhancing the competitiveness of Hong Kong so as to ensure sustained economic growth and create more wealth for the community. Thirdly, we must be fair and reasonable. In fact, I consult all parties concerned and discuss thoroughly with my colleagues before making any decision. I always stick to these three values when the final decision is made.

I am in good health and I practise tai chi every day. Sometimes, Betty and I and other members of the family spend a nice weekend together at Fanling Lodge.

Tonight, Betty and I are going to see an opera organized by the Hong Kong Arts Festival. I can squeeze time from my tight schedule for entertainment. So, please put your mind at ease about my well-being. I hope that you and your family will come to visit us again this summer.

All the best to you and your family .

Yours ever

Chee Hwa