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The Chief Executive, Mr Tung Chee Hwa, has today (Saturday) encouraged Australian investment in Hong Kong's information technology sector as part of the SAR's ongoing efforts to become a centre for innovation and technology in East Asia.

In a bilateral meeting with Australia's Prime Minister John Howard ahead of the annual APEC Economic Leaders Meeting (ELM), Mr Tung said that Hong Kong would welcome increased participation and inflow of expertise from Australia's high-tech and IT companies.

"Quite a few Silicon Valley companies have begun to invest in Hong Kong and of course we would welcome Australian participation in building up these industries," Mr Tung said.

The Chief Executive also explained that Hong Kong was making additional efforts to improve the environment and that Australian participation and experience in these efforts would be most welcome.

In a warm and cordial meeting, Mr Tung briefed the Australian Prime Minister on Hong Kong's current economic situation, pointing out that GDP had recorded positive growth of 0.5 per cent in the second quarter of 1999. He said the Hong Kong economy had turned the corner and real economic growth had resumed.

Mr Tung stressed that the Hong Kong Dollar link to the US Dollar had helped maintain economic stability since introduced in October 1983 and that there was every intention to maintain the link.

The Chief Executive and Mr Howard also exchanged views on China's entry into the WTO and the reform of international financial architecture.

"In regards to China's entry into the WTO Prime Minister Howard told me that Australia had struck a good deal with China," said Mr Tung.

"And we both hoped that China would gain accession to the WTO as early as possible."

Mr Howard briefed Mr Tung on Australia's perceptions about the civil unrest in East Timor and explained Australia's readiness to help stabilise the situation in conjunction with the United Nations and the international community.

During his meeting with the Sultan of Brunei, Mr Tung was briefed on preparations for the 2000 APEC Economic Leaders Meeting to be held in Brunei Darussalam.

The Sultan told Mr Tung that the focus of next year's meeting would be small and medium enterprises, human resources development and information and communications technology.

Tomorrow, Mr Tung is due to hold bilateral meetings with Singapore and Canada before attending the official welcome for APEC economic leaders by New Zealand's Prime Minster Jenny Shipley.

Photo 1: The Chief Executive, Mr Tung Chee Hwa, holds bilateral talks with Australian Prime Minister, Mr John Howard, in Auckland ahead of the annual APEC Economic Leaders Meetings.

Photo 2: The Chief Executive, Mr Tung Chee Hwa, holds bilateral talks with the Sultan of Brunei in Auckland ahead of the annual APEC Economic Leaders Meetings.

End/Saturday, September 11, 19999

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