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The Chief Executive, Mr Tung Chee Hwa, says his visit to Israel this week has given him many ideas and a better understanding of how to develop policies which could help promote the development of a high-tech and high value-added economic sector in Hong Kong.

Speaking today (Thursday, HK time) after a three-day visit which focused on learning the secrets of Israel's high-tech success, Mr Tung said: "We have learnt a great deal during our visit especially about how the government plays a role in creating the right environment for high-tech industries to develop and flourish.

"They are very strong in bringing together the three sectors of business, academia and government to facilitate the rapid development of communications and technology.

"Of course, not everything applies to Hong Kong and there are many conditions in Israel which are completely different. But we have seen a lot and learnt a lot and now we have to go back to Hong Kong to talk our way through everything and to identify those areas which may apply or be helpful to Hong Kong."

Mr Tung said he had been impressed at how Israel had moved forward since the country was established in 1948, noting that technology-related products now accounted for about 65 per cent of all Israel's exports.

During his final day in Israel, Mr Tung had a full day of site visits, including a briefing at the world-renowned Weizman Institute of Science, which concentrates heavily on scientific research and accepts only graduate students for masters or doctorate degrees.

Institute President Professor Haim Harari told Mr Tung there were about 1,000 research projects being carried out by the Institute's 2,000 scientists, students and post-doctoral fellows. Of those, 200 were foreign scientists, including 25 from the Mainland.

Mr Tung and the Hong Kong delegation, which includes Secretary for Trade and Industry Chau Tak Hay and the Director-General of Industry Francis Ho, also visited a technology 'incubator' where 'new ideas are baked into commercial products'.

Mr Tung was told that Israel had 26 'incubator' facilities dealing with more than 200 projects - mainly funded by government grants and additional private sector involvement.

People with new ideas or technology are given grants of up to US$300,000 over two years to develop their ideas into a commercial product. Since the incubator programme was started seven years ago new products developed have generated business worth US$285 million, Mr Tung was told.

Earlier yesterday, Mr Tung visited companies dealing in satellite, telephone and network communications systems.

Mr Tung visited leading satellite company Gilat Satellite Networks Ltd, which was started in 1987 by five men and now has a market capitalisation of more than US$1 billion on North America's NASDAQ.

The company develops, manufactures and markets the hardware and software - known as VSATs - needed to receive satellite signals carrying phone or data transmissions.

The company invests heavily in research and development and is involved in a wide range of communications applications for television, phones, data transmission, faxes and multi-media.

Mr Tung was told that China's Ministry of Water Resources uses Gilat's VSAT technology to monitor water levels around the country and to communicate effectively during floods to help with evacuation or mobilising relief efforts.

The Chief Executive was also briefed about the MOST Consortium, Israel's biggest collaborative effort in communications involving 22 companies and two research institutes and investment of US$150 million over three years.

The consortium is developing cutting edge Internet technology for such applications as security, video, internet phone, interactive shopping and entertainment, on-line learning, medical information and other advanced media services.

Mr Tung left Israel early today and will arrive in Hong Kong later this afternoon.

End/Thursday, February 4, 1999

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Photo caption: The Chief Executive, Mr Tung Chee Hwa, creates a whirlpool during a visit yesterday (Wednesday) to a hands-on science garden for school children at the world-renowned Weizman Institute of Science near Tel Aviv, Israel.

Photo caption: The Chief Executive, Mr Tung Chee Hwa, attends an in-depth briefing session today (Tuesday) at the DA'AT Consortium, which combines academic, government and private industry sectors to develop drug design technology.

Photo caption: The Chief Executive, Mr Tung Chee Hwa, meets Mainland students who are conducting research at the prestigious Weizman Institute of Science near Tel Aviv, Israel.