*********************************************************

The Chief Executive, Mr Tung Chee Hwa, has today (Sunday) joined APEC Economic Leaders in Auckland for their last major session of meetings before the end of the century.

In a busy day, Mr Tung and the 20 other economic leaders discussed the agenda for tomorrow's ELM, which will focus on three themes: APEC's response to the economic crisis; APEC and the wider world; and communicating the importance and benefits of APEC issues.

The Chief Executive attended the leaders' summit breakfast with CEOs' from some of the biggest and most influential companies within the APEC realm, and took part in the leaders' annual dialogue with the APEC Business Advisory Council (ABAC).

Mr Tung said that leaders were encouraged by the ABAC initiatives put forward this year to enhance and facilitate business and trade within APEC.

Following the annual APEC Ministerial Meeting last week, Hong Kong has agreed to play a key role in developing a set of APEC principles on trade facilitation.

A set of standard principles could help business save time and money by reducing red tape, simplifying procedures, provide easier access to information and through greater certainty in legal and regulatory frameworks.

Topics covered during the 75-minute ABAC session included lessons from the Asian financial crisis, sustainable economic growth, accelerated trade liberalisation, APEC's contribution to the WTO, the development of a policy framework to cope with a competitive global economy, the abolition of subsidies on food products within APEC and Y2K readiness.

Mr Tung pointed out that the Y2K problem was not confined to individual sectors and that it was very important to adopt a cross-sectoral approach in tackling the implications of the millennium bug.

He said, for example, that a power failure would have serious implications for telecommunications and transport services which meant that governments had an important role to play in co-ordinating the cross-sectoral approach.

Mr Tung pointed out that Hong Kong had been doing a lot to ensure Y2K compliance and urged governments to step up their monitoring role to ensure that the Y2K problem was given due attention.

The Chief Executive also joined APEC economic leaders for the 'official' welcome to the APEC meeting by New Zealand Prime Minister Jenny Shipley, and as an honoured guest in the Maori welcome ceremony, the 'powhiri'.

During the elaborate ceremony, Maori leaders spoke in their native language to welcome the VIP visitors, who were described as 'giants from the deep around this great ocean' who had been 'guided by the stars and borne by the currents of the ocean god' to the meeting in Auckland.

The ceremony ended with leaders taking part in the traditional Maori gesture of welcome, the rubbing of noses, or 'hongi', which symbolises the acceptance of a guest into a community through the 'sharing of air'.

Before the start of his official programme, the Chief Executive this morning held bilateral meetings with Singapore and Canada.

During the meeting with Singapore Prime Minister, Mr Goh Chok Tong, the two leaders reviewed the impact of the Asian financial crisis on Hong Kong, Singapore and the other Asian economies.

"Both leaders noted with some satisfaction that Hong Kong, Singapore and other Asian economies are coming back to the fore and that the economic downturn appears to have passed its worst time," said Information Co-ordinator Stephen Lam of the meeting.

"They also very much welcomed further co-operation between Hong Kong and Singapore to promote business revival and further economic development in Asia.

"For example, Hong Kong and Singapore both believe that they can co-operate, through the APEC and WTO mechanisms, the push forward for free trade in the Asia-Pacific area.

"We should use both avenues to promote this sort of international co-operation. And of course both Hong Kong and Singapore are basically tariff-free economies and it is very important for both our governments to continue to promote this sort of philosophy with our major trading partners."

In his bilateral meeting with Canadian Prime Minister Jean Chertien, the Chief Executive explained Hong Kong's new initiatives in the areas of environmental protection and information technology.

Mr Tung said that he hoped that Canadian companies and Canadian expertise could come to Hong Kong to partake in initiatives in these two areas.

Mr Tung said that Prime Minster Goh and Prime Minister Chretien joined him in supporting continued international efforts and discussions in regard to the reform of the international financial architecture.

He said that both the leaders, and he himself, believed it was important for these discussions to continue, so Asian and other global economies would be better prepared in future to withstand the pressures of similar financial difficulties.

Tomorrow (Monday), Mr Tung will spend the entire day at the annual leaders' retreat, which will be held at the Auckland Museum.

Ends/Sunday, September 12, 1999

NNNN