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Following is the remarks by the Financial Secretary, Mr Donald Tsang, at the official opening of the Bank for International Settlements, Representative Office for Asia and the Pacific today (Saturday):

President Verplaetse, Mr Crockett, Governors, distinguished guests, ladies and gentlemen,

It is a great honour for me to be here today at the opening ceremony of the Bank for International Settlements Representative Office for Asia and the Pacific. On behalf of the Government of the Hong Kong Special Administrative Region, let me first extend a very warm welcome to all of you. I would also like to take this opportunity to congratulate the BIS on its decision to open its first overseas office in Asia. This is a timely and significant move as 25% of the BIS's bank deposits comes from Asia. Notwithstanding the turmoil in the financial markets in this region, the basic fundamentals of Asia * high savings, flexible labour force, entrepreneurial spirit, pragmatic governments and openness to innovation - have not changed. I am confident that Asia will adjust to its problems and begin, with the help of the rest of the world, the painful but necessary process of recovery and growth. If I may be as bold to speak on behalf of our Asian members, we are proud and honoured that the BIS has decided to open its first regional office in Asia.

Established in 1930 and now with a membership of 45, the BIS has proved to be a very effective forum for international monetary co-operation. Over the years, BIS has made remarkable contribution to the promotion of international standards and best practices among the international financial community. These have enhanced the transparency of banking operations and asset quality, and reinforced global financial and monetary stability. Hong Kong is proud to be a member of the BIS and extremely honoured to be the location of the BIS Representative Office.

Our association with the BIS is a long one. Back in the 1970's, Hong Kong already took part in the Bank's statistics collection activities. Since the Hong Kong Monetary Authority became a BIS member in November 1996, we have stepped up our participation in the Bank's wide range of activities, fostering a close relationship between us. The establishment of the Representative Office in Hong Kong is an important milestone in the development of this relationship. It places the BIS at the right time and the right place to meet the needs in Asia and the Pacific. It also underlines our strategic location in the region and the attractions in telecommunication and financial infrastructure we can offer as an international financial centre.

The past 12 months have been a difficult period for Asia. I can see a challenging and crucial role for the BIS in helping to provide sound policy advice and bring into Asia valuable international experience and expertise. This would help Asia strengthen its financial sectors, develop the financial infrastructure, and restore financial stability in this region. At the same time, the BIS Office would through its international meetings held here improve global understanding of Asia and forge the bonds of global monetary cooperation and friendship. We look forward to greater and even more fruitful co-operation with the BIS and other central banks in achieving this task.

In recent years, the central banks and monetary authorities in this region have, with support from our Japanese colleague, been enhancing their technical cooperation. I trust that the BIS activities in this region will complement such endeavours and help to achieve closer monetary and technical cooperation among the central banking institutions in this part of the world.

Before I conclude, I want to give a very warm welcome to the Chief Representative George Pickering and his staff, and also all the central bank governors who have come especially to witness this historic occasion. I want also to acknowledge with thanks the great work that the BIS management, the Chinese Ministry of Foreign Affairs, the People's Bank of China and staff of HKMA and members of the HKSAR Government who have worked so hard to make this opening possible. I wish them all the best.

Thank you very much.

END/Saturday, July 11, 1998

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