Contents (This speech is also available in MS Word 97 and Adobe Acrobat formats) 　 　 Paragraph I.Introduction 1-3 II.Looking Back on the Past Two Years 4 A.Two Major Challenges 5 　Implementing "One Country, Two Systems” 6-8 　Riding Out the Storm 9-11 B.Relieving Hardship and Accelerating Recovery 　 　Relief Measures 12-13 　Economic Recovery 14-16 C.Medium to Long Range Initiatives 17 　Investing in Education 18 　Caring for the Elderly 19 　Meeting Housing Needs 20-21 D.Expanding the Economic Base and Promoting Employment 22 　Supporting Small and Medium-sized Enterprises 23-24 　Training People for Jobs 25-29 　Investing in Infrastructure 30 　Air Cargo Hub 31 　Promoting Tourism 32 　Promoting Innovation and Technology 33 　Changes in Mindset 34 E.Summing Up 35 III.Clear Positioning 　 A.Long-term Strategy 36-37 B.Three Momentous Changes 38 　Globalisation of the World's Economy 39 　Rapid Economic Development on the Mainland 40 　Economic Restructuring 41-42 C.A World-class City 43-45 D.Unique Advantages 　 　Strengthening Ties with the Mainland 46-47 　Joint Development of the Pearl River Delta Region 48-49 　Multitude of Tasks 50-51 IV.Cultivating Talents for a Knowledge-based Society 52 A.The Need for Education Reform 53-60 B.Progress of Improvement Measures 61 　Basic Education 　 　　Introducing Administrative Reforms 62 　　Kindergarten Education 63 　　Improving the Learning Environment 64 　　Quality Education 65 　　Promoting Information Technology in Education 66 　　Upgrading the Quality of Teachers 67-68 　　Improving Language Ability 69-72 　　Greater Diversity in Schools 73 　Tertiary Education 　　Pursuit of Excellence 74 　　Reforming the Admission System 75 　　Life-long Learning 76-77 　　Collective Commitment to Education Development 78 C.Young People 79-83 D.Admission of Talented People 84 E.Summing Up 85 V.Making Hong Kong an Ideal Home 86-88 A.Air Pollution 89-93 　Comprehensive Control on Diesel Vehicles 94-101 　Stronger Actions against Smoky Vehicles 102 　Pedestrianisation 103 　New Comprehensive Transport Strategy 104-105 B.Water Pollution 106 　Drinking Water 107-109 　Sewage Treatment 110-111 　　Strategic Sewage Disposal Scheme 112-114 　　Increasing Expenditure on Sewerage Works 115 C.Solid Waste 116 　Waste Reduction 117 　Recycling 118 　Waste to Energy 119 D.Co-operation with the Mainland 120-121 E.Adhering to the Principle of Sustainable Development 122 　Institutional Framework 123 　Shared Commitment 124-125 　Environmental Protection Industry 126 F.A Quality Living Environment 127 　Urban Renewal and Protection of Our Heritage 128 　　The Urban Renewal Authority 129 　　Comprehensive Redevelopment of Old Urban Areas 130-132 　　Preserving Our Heritage 133 　Nature Conservation 134 　A More Beautiful Harbour 135-137 G.Summing Up 138-140 VI.The Foundation of Prosperity and Progress 141 A.Our Institutions 　 　Promoting the Basic Law 142 　Rule of Law 143-145 　Constitutional Development 146-150 　Introducing Reforms while Maintaining Stability 151-157 B.Government's Role in the Economy 158 C.Our Society and Culture 159 　Helping the New Arrivals 160-163 　Hong Kong's Culture and Creativity 164 　Protecting Intellectual Property Rights 165 　Sports 166 　Moral Values 167 　Media Ethics 168-169 VII.Conclusion 170-174