Constitutional duty: The Chief Executive said Hong Kong has a responsibility to enact laws to protect national security. He appealed to the community to work together towards rebuilding the economy.

After extensive consultations and special meetings of the Executive Council, the Government has decided to amend three controversial provisions from the proposed National Security Bill.

Flanked by his Executive Council members, Chief Executive Tung Chee Hwa told a press briefing today that he had watched the July 1 march on television from early afternoon until the evening.

"I fully understand the community's sentiments," he said, noting that the protesters had expressed their concern over the legislative proposals to implement Article 23 of the Basic Law, their dissatisfaction with Government policies, and over his governance in particular. "I will respond to them in the coming days," he said.

The community's concerns over the legislative proposals mainly focus on three provisions, he noted.

Three controversial provisions to be amended

"In the special ExCo meetings held over these past few days, we have reviewed the issues in great detail. In order to further allay the concerns of the public, we have now decided to introduce further amendments.

"We will delete the provision regarding a local organisation subordinate to a mainland organisation which has been proscribed by the Central Authorities.

"We will introduce "public interest" as a defence for unlawful disclosure of certain official information, in order to protect and alleviate the concerns of the public, particularly those of the media.

"We will delete the provision which confers on the police a power to search without court warrant in the exercise of their emergency investigation powers," Mr Tung said.

In answer to a reporter's query, he said there was no intention to push the Bill through now and then introduce these provisions later.

Security Bill will resume second, third readings on July 9

The Government will press ahead with the legislative process to enact the Bill now that the controversial provisions have been amended.

"The National Security Bill will resume second and third reading on July 9, as originally scheduled," Mr Tung said.

"The Government must press ahead with the legislative process as scheduled because everybody clearly knows that we have a responsiblility and a constitutional duty to enact laws to protect national security."

The community will be further divided if we remain undecided on the issue, he stressed.

"Division is damaging to Hong Kong. Stability is the cornerstone of our success in the past. I suggest that everybody should reflect rationally about how to maintain the stability of Hong Kong and to properly manage some of the fundamental relationships that help maintain our stability, including our relationships with the Mainland and the international community."

Responding to a reporter's query, Mr Tung said he had scheduled a meeting with the Democratic Party for Monday. The Democrats have said they would vote against the Security Bill, particularly in the wake of the July 1 rally.

He claimed that the citizens who took part in the march "showed their mettle in a rational and orderly manner. Indeed, this is a prerequisite for the stability of Hong Kong."

Revitalising economy most important issue

The most pressing issue for Hong Kong now, the Chief Executive said, was to revitalise the economy, and he called on all citizens to pitch in.

He noted that 86% of Hong Kong's Gross Domestic Product comes from the service sector, and its four pillars are finance, logistics, tourism and commerce and trade.

"Each of these pillars is closely linked with the Mainland," he said. The source of most of our goods is mainly from the Pearl River Delta. About 40% of tourists come from the Mainland. In the financial sector, about 100 companies will list in Hong Kong in the next year, and most of them are from the Mainland.

"We need to maintain a good relationship with the Mainland," he said, noting that officials there were doing all they could to shore up Hong Kong's economy, including signing the Closer Economic Partnership Arrangement.

"It's one of the largest markets around the world. The better the mother country develops, the better it will be for us," the Chief Executive said.