Speech by Secretary for Trade and Industry

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Following is a speech by the Secretary for Trade and Industry, Mr Chau Tak Hay, at the signing ceremony for the HKSAR/UK Agreement for the Promotion and Protection of Investments today (Thursday):

Sir Andrew, ladies and gentlemen,

I would like to thank our guests for attending the signing of the Agreement for the Promotion and Protection of Investments between the Hong Kong Special Administrative Region of the People's Republic of China and the United Kingdom.

Foreign investment has played an important part in Hong Kong's economic success. Hong Kong's attractions as a destination for foreign investment are manifold. For example, we offer a level playing field to all investors, regardless of origin; we provide a competitive and business-friendly environment in which local as well as foreign enterprises can prosper; and our well-established and impartial legal system ensures that all investments are protected by the rule of law.

Hong Kong entrepreneurs also invest substantially overseas. Our businessmen have extended their operations to almost every corner of the world. Despite our small size, we are in the top league as a source of foreign direct investment.

In the past few years, we have concluded a number of investment promotion and protection agreements with our major investment partners. Amongst other things, these agreements guarantee fair treatment for investors, proper compensation if investments are expropriated and the free transfer of investments and returns. They also provide for investment disputes to be settled in accordance with prescribed and equitable procedures.

The agreement which Sir Andrew and I will sign in a moment is the fourteenth one we have concluded so far. It is the first investment promotion and protection agreement concluded since our reunification with the Mainland. The United Kingdom has always been one of our major trading partners; and this agreement will further strengthen trade and economic ties between the Hong Kong Special Administrative Region and the United Kingdom.

Thank you.

End/Thursday, July 30, 1998

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