My child,

My vocal cord operation has been successful, and I am confident that I will fully recover. The support of friends and colleagues has given me great comfort recently. I am not worried at all : after all, there are ups and downs in life.

Since I assumed the responsibility for formulating housing policy and overseeing housing development three years ago, I have been under no illusions about the complexity of the job. I have faced numerous challenges as housing is everyone's concern. On the one hand, the Government has to strike the right balance between the interests of various sections of the community. On the other, our priority is to look after those who are most in need. This is no easy task. We are the subject of different kinds of criticism at different times.

I have never been disheartened, however. As an old saying goes, "Keep one's composure whether the situation is good or bad." We should not mind our own gains or losses. What is more important is having peace of mind and being unashamed of one's actions. Over the years, I have adhered to the belief that a responsible government should insist on doing what is right and refrain from doing what is wrong. If we cast aside our principles easily in the face of pressure or unreasonable demands, how can we uphold social justice? How can we work for the overall and long-term interests of the community?

One of my main wishes has materialised recently. The White Paper on Long Term Housing Strategy in Hong Kong has been published. Our goal is to build "Homes for Hong Kong People into the 21st Century". In the White Paper, we have set out the future direction and strategy, as follows:

(a) We will establish a fairer and more equitable system for allocating scarce public housing resources. In order to be able to offer public rental housing to families in genuine need as quickly as possible, we will increase the supply of public housing flats and encourage existing public rental households with the necessary financial ability to buy their own homes. As a number of families still live in over- crowded or poor accommodation, the Government is determined to improve the quality of their accommodation. Our target is to reduce gradually the average waiting time for public rental housing to three years.

(b) We will help more families, including the sandwich class, to fulfil their aspirations to home ownership. The Government is offering the public more opportunities and choices, such as the newly introduced Tenants Purchase Scheme and the Home Starter Loan Scheme. People can take their own "calculated decision". Naturally, families intending to buy flats will think carefully before doing so, taking into consideration their own needs and financial situation. What the Government does is to offer a helping hand so that people can fulfil their aspirations to home ownership earlier.

(c) We encourage stability in the property market. As it is linked to many other businesses, the property market is a pillar of Hong Kong's economy. Many people invest life-long savings in their flats. Sharp fluctuations in prices are therefore not desirable. We will monitor the market closely.

(d) We intend to achieve our long-term housing production target. As the population keeps increasing and the community's aspirations to better accommodation are rising, there is a growing demand for housing. In projecting housing demand, we have already taken into account all relevant circumstances. However, we will still review housing demand regularly, provide a sufficient supply of land together with supporting infrastructure, and fully utilise the capacity of the private sector in helping us to achieve the housing production target. Despite the inherent difficulties, such as shortage of land, we have a comprehensive plan to overcome the problems.

As you know, Hong Kong is my home. Like many people, I have deep feelings for it. Since July 1, 1997, we are the masters of this home. The White Paper on Long Term Housing Strategy is one of the most important policy documents of the Government of the Hong Kong Special Administrative Region. The White Paper demonstrates our ability and confidence to solve the housing problem in Hong Kong. I am very glad to have accomplished this important task at this historic time. Henceforth, all families, whether they are in the lower income group or the middle income group, will share the fruits of their hard work. We will build on and develop the foundation we have laid into the 21st Century. Our determination to accelerate housing production and to improve the living conditions of the community is clear and firm.

My child, you must continue to study hard. Read more and think deeply. Zeng Guo-fan once encouraged his son in a letter: "It is not my wish that you will one day become a prominent official. I just want you to study hard, and become a man of integrity who is diligent and frugal, who exercises self-discipline, who works hard and who can adapt to times of poverty and prosperity." You must grow up to be a man of integrity. This is what I expect of you.

Father

21st March 1998