Mr Ambassador, Your Excellencies, Distinguished Guests, Ladies and Gentlemen,

I am delighted to be here. I'm grateful for the very warm reception Ambassador and Mrs Qian has accorded to me and my wife. I am also greatly honoured by the reception, the very warm reception, the Malaysian Government has accorded to me today.

This is my first overseas trip as Chief Executive of the Special Administrative Region. I am very grateful for the support and encouragement of the Central Government when I began to plan this trip.

July 1, to all of us in Hong Kong, was a very special day. It was a day which filled our hearts with pride and with confidence. Pride, that after 156 years, Hong Kong was at last reunited with her family, with China, to become a member of a large family. Confidence in the sense that being masters of our own destiny we know Hong Kong will be better tomorrow for our children and for our grandchildren.

Since July 1, all branches of our Government - Judiciary, Legislative and Executive - are functioning normally. Lifestyle to which we are very accustomed to in Hong Kong has not changed. Economy continues to expand. Indeed, Hong Kong is moving forward with confidence into the 21st Century.

The fact is the very foundations of "One Country, Two Systems", Hong Kong people governing Hong Kong with a high degree of autonomy is laid as we move forward during the last two months.

I have come to Malaysia with a view to explain to my friends what has happened after July 1, 1997. I have also come to strengthen a very important relationship between Hong Kong and Malaysia, to compare notes as we move forward, indeed there are areas where we can learn from Malaysia.

My visit is very short but already this afternoon having talking with the Prime Minister, the Deputy Prime Minister and the Minister of Transport we have had very useful exchanges.

Mr Ambassador, I am grateful once more for your warm hospitality and I look forward to welcoming to Hong Kong one of these days.

May I propose a toast to Malaysia, to China and to Hong Kong.