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Australia's role in helping to maintain and promote stability in the Asian region has been praised by the Chief Executive of the Hong Kong Special Administrative Region, Mr Tung Chee Hwa, during his first official visit 'Down Under'.

In a keynote address to the Asia Australia Institute in Sydney tonight (Sunday), Mr Tung said Hong Kong placed a great deal of importance on its relationship with Australia.

"I know that in Australia, there has been much debate about your role and your identity in Asia," said Mr Tung.

"I look at it this way - Australia has its own unique position. You are a nation in the Asia Pacific community and you have your own special contributions to make in the region."

Mr Tung noted that Australia's trade mix had become closely aligned to the Asia Pacific region, with 70 per cent of its trade now within APEC and 50 per cent within East Asia.

"Your abundant natural resources - for example, coal, iron ore, non-ferrous metals - helped fuel the rapid industrial growth in countries such as Japan, South Korea and more recently in our own country," he said.

"Your excellent produce - beef and lamb, wheat and rice, sugar and fruit - is found in shops all over the region. Your wool - the first foundation of Australia's fortunes - is transformed into textiles and garments in mills and factories across the globe, but notably in China, Italy and Japan.

"Hong Kong is a big buyer of your gold, telecommunications equipment and transport equipment. So in terms of trade, Australia is firmly anchored as an important partner - and player - in the region."

Mr Tung said that besides forging close trade ties within the region, Australia had also developed a special role promoting regional stability.

"Australia, more than any other countries, has been effective in this regard," he said.

"This is particularly because of Australia's deep knowledge of Asia's different histories, cultures and beliefs and your respect for these histories, cultures and beliefs.

"You were among the first to initiate APEC, and this forum has not only helped bring down trade barriers but it has kept all of its members engaged in dialogue. It has unified economies despite their diversity."

Mr Tung said that although Hong Kong and Australia had developed a close relationship over the years he hoped to forge even closer ties during this visit.

He said Hong Kong and Australia shared the same commitment to the free market economy and trade liberalisation and had many times shared the same views in such important fora as the World Trade Organisation and APEC.

In a wide ranging speech, Mr Tung told guests how Hong Kong had been running smoothly since July 1 last year under the concepts of 'One Country, Two Systems' and 'Hong Kong people running Hong Kong' with 'a high degree of autonomy'.

He noted that two former Australian High Court Judges were among the pool of six overseas judges who have been invited to sit on cases ruled on by the Full Court of Hong Kong's Court of Final Appeal.

"The involvement of these experienced overseas judges in our Court of Final Appeal helps Hong Kong maintain its links with the rest of the common law world," he said.

"It underlines the importance we place on the rule of law by an independent judiciary."

Mr Tung spoke about the Asian Financial turmoil, possible reasons why it had been so devastating and the essential conditions necessary before the region would see a recovery.

He also spoke about how Hong Kong had coped with the turmoil through its strong financial position, the determination to defend the HK-US Dollar link and the Government's plans to press ahead with massive spending on infrastructure.

Ends/Sunday, June 14, 1998

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