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The Chief Executive, Mr Tung Chee Hwa, has tapped into the secrets of cyber success during a visit today (Friday, Hong Kong time) to Silicon Valley, the world's undisputed centre for innovation and technology.

And he also outlined his vision for Hong Kong's high-tech future to about 800 lunch guests, including many of Silicon Valley's top business executives as well as Californian political and government figures.

Mr Tung urged Silicon Valley corporations to consider Hong Kong as their base of operations for the Asia-Pacific region.

"If anyone here is looking for a stepping stone into the Asian market then all you need to do is key in the magic words 'Hong Kong'," he told lunch guests.

Mr Tung said Hong Kong had a lot to learn from Silicon Valley.

"In a way we all feel humbled what's happening here. In Hong Kong a US$1 billion dollar company is a very successful company but in Silicon Valley a US$1 billion dollar company may be a start-up company!," Mr Tung joked.

"I think what you have done is marvellous. You have created so much wealth for your people, you have made such a wonderful city for your citizens. So I am even more determined that we should move in this direction, we should follow your footsteps.

"And I should hope that a few years down the road, it won't be an easy, quick fix, but a few years down the road we will be able to proudly say: Look, we are like Silicon Valley in Asia. We hope we will be able to achieve a fraction of your success a few years down the road."

Mr Tung said he was delighted that a new non-profit organisation had been set up to enhance and strengthen ties between Hong Kong and Silicon Valley.

"This new group - HongKong-SV.com - will be very helpful," he said. "It is an important organisation for Hong Kong because it will provide a bridge between Hong Kong and Silicon Valley and I would hope that it will mean that we can really work very closely together.

"I look to Silicon Valley, not from the point of view being competitive, because we can't be, you are the very big brother and we are just beginning. So we hope you will come and help us."

Mr Tung's valley visit included a breakfast meeting with the business chiefs from 10 Silicon Valley corporations and visits to the headquarters of four leading IT companies - Cisco Systems, Yahoo!, Intel and D2M.

Joining Mr Tung in Silicon Valley were the Secretary for Trade and Industry, Mr Chau Tak Hay, the Director-General of Industry, Mr Francis Ho, the Deputy Secretary for Information, Technology and Broadcasting, Ms Eva Cheng, the Commissioner for Economic and Trade Affairs USA, Miss Jacqueline Willis, and the Director of the Hong Kong Economic and Trade Office in San Francisco, Mr Michael Lee.

During the breakfast meeting, Mr Tung told Silicon Valley business leaders that he was keen to hear their views on how Hong Kong could develop its own, unique role as a centre for technology and information technology.

Cisco, Yahoo!, Intel and D2M all have offices in Hong Kong. Cisco and Yahoo! have signed up as anchor tenants of Cyberport, while Intel will have a presence through a joint venture with the Pacific Century Group, which is developing the high-tech hub at Pok Fu Lam.

The visit to Cisco included the company's vision of the Internet economy, while the Yahoo! tour included a demonstration of the company's Chinese-language version of its Hong Kong website.

At Intel, the Chief Executive was briefed on Silicon Valley experiences as applicable to Hong Kong while the D2M tour touched on developing Hong Kong as a centre for software design and engineering.

Mr Tung will tomorrow (Saturday, Hong Kong time) meet with one of Silicon Valley's leading venture capital corporations Hambrecht & Quist, and be interviewed for national US television.

Mr Tung will stay in San Francisco for a holiday before returning to Hong Kong.

End/Friday, July 23, 1999

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