WHAT HE ANNOUNCED IN 1997 A rise in recurrent spending of $7.7 billion to $18.6 billion and an $88 billion capital expenditure injection over five years on education, welfare, housing and infrastructure. A target of 85,000 flats a year, 70 per cent home ownership by 2007. At least 250,000 families in public rental housing to buy their flats. Build more subsidised home ownership flats. Home starter loan of $600,000 for first-time buyers. Inject $5 billion for a quality education development fund. Education Commission review. Set up new bureau on information technology. A $100 million loan to the Hong Kong Tourist Association to boost tourism. Welfare benefits to rise by $380 a month. QUOTES: 'Hong Kong has finally broken free from the psychological constraints of the colonial era. We should have the courage to set aside past modes of thought and plan Hong Kong's future with vision.' 'We must work to build Hong Kong for ourselves and for future generations: a Hong Kong that is civilised, prosperous, stable and democratic, filled with a new vitality.' AND LAST YEAR Strategy to prepare for knowledge-based economy, with emphasis on information technology, tourism and film industry. Set up an applied science and technology research institute and a $5 billion fund to promote innovation and technology. Set up a Council of International Advisers. Play down the 85,000-unit housing target. Building of sandwich-class flats suspended. Scrap the municipal councils and revamp structure on food and environmental hygiene. Appoint a Commissioner for Tourism. A $100 million Film Development Fund set up. Urban Renewal Authority to ensure speedier renewal of buildings. QUOTES: 'The most crucial factor now is our own confidence.' 'Images kept flashing through my mind of our countrymen fighting the terrible floods . . . As we in Hong Kong face one of the most severe challenges in recent history, I deeply believe that, if we can show the same spirit of strength, courage, solidarity and concern for our fellow citizens, we will be able to overcome our present difficulties and build a brighter future.'