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The Chief Executive, Mr Tung Chee Hwa, had a useful and in-depth exchange of views with his Council of International Advisers at its second meeting today (Wednesday).
The Chief Executive extended a warm welcome to the distinguished business and corporate leaders who were visiting Hong Kong specially to share with us their insights and to advise us on Hong Kong's strategic developments.
"It was extremely useful that we could meet with top business leaders today to assess the global economic outlook and the long-term development strategy for Hong Kong. We reviewed economic prospects in North America, Europe, Japan and East Asia," he said.
The meeting also covered the latest economic performance of Hong Kong, our international positioning as a world class city and international tourist destination, as well as our close economic ties with the Mainland particularly the Pearl River Delta Region.
Looking ahead, the Advisers considered that while the Asian economies had improved, reform measures must continue. They considered that growth in Western economies would be sustained. Hong Kong would stand to benefit and our economy should continue to achieve positive growth in real terms in 2000.
On China's accession to the World Trade Organisation, the Advisers believed this would be very beneficial to world trade, and would be good for China, good for the world, and good for Hong Kong.
"Overall trade with China will increase and the pie will get larger. Hong Kong stands to gain, particularly our service industries which will gain access to a much larger market," Mr Tung said.
The Advisers noted that last year's intervention in the stock market was effective and that Hong Kong had adopted a range of initiatives to improve its monetary and financial markets.
"The Advisers consider that the linked exchange rate has served Hong Kong well and plays a key role in underpinning Hong Kong's economic stability," Mr Tung said.
The Chief Executive said the Advisers believed that Hong Kong need to continue its efforts to enhance its competitiveness, to continue to adjust its cost structure and to maintain its attractiveness as an international business centre.
"The Advisers support our policy initiatives to upgrade our quality of life by improving the environment, and to improve education and the standard of English. These measures will attract investments and quality personnel to Hong Kong.
"The Advisers believe that Hong Kong is well placed to capitalise on its position as a global financial centre, given our strengths, quality physical infrastructure, resourcefulness of human capital and unique economic links with the Mainland," he said.
To sustain our economic development, the Advisers proposed that Hong Kong should :
* make full and practical preparations to maximise the opportunities flowing from China's entry into the World Trade Organisation ;
* continuously look for ways to improve the business environment and to strengthen our competitiveness;
* keep up our efforts in developing information technology and innovation and technology to keep pace with rapid developments in these areas ;
* continue our efforts to provide world class and multifarious attractions for tourists;
* map out a master strategy to further strengthen our ties with the Mainland and in particular to capitalise on the development of the Pearl River Delta Region; and
* market Hong Kong internationally both to potential inward investors and to international tourists to reinforce Hong Kong's image as a World City.
During the full-day meeting at the Hong Kong University of Science and Technology, the Advisers were briefed on Hong Kong's economic outlook by the Financial Secretary, and on the strategy for Hong Kong's development by Head of the Central Policy Unit, the Secretary for Transport and the Secretary for Planning, Environment and Lands.
After lunch, they took the opportunity to tour the campus. They visited the Nuclear Magnetic Resonance Facility, the Materials Characterisation and Preparation Facility, the academic concourse and the Artrium before ending the tour at the Centre for Coastal and Atmospheric Research where presentations on several projects were arranged for them.
The demonstrations were on biosensor applications in a rapid test to detect heart infarction, liquid crystal display technology and a Pearl River Estuary Pollution Project.
The Advisers who attended today's meeting were : Dr Karl-Hermann Baumann, Chairman of Supervisory Board, Siemens AG; Mr Maarten van den Bergh, President of Royal Dutch Petroleum and Vice-Chairman fo the Committee of Managing Directors of the Royal Dutch/Shell Group; Mr Cor Boonstra, President of Royal Philips Electronics; Mr Andre Desmarais, President and Co-Chief Executive Officer of Power Corporation of Canada; Mr Christopher B Galvin, Chief Executive Officer of Motorola Inc; Mr Hilmar Kopper, Chairman of Supervisory Board, Deutsche Bank AG; Mr Jerome Monod, Chairman of Supervisory Board, Suez Lyonnaise des Eaux; Sir William Purves, Ex-Chairman of HSBC Holdings; Mr Tasuku Takagaki, Chairman of the Board, The Bank of Tokyo-Mitsubishi, Ltd; Dr Shoichiro Toyoda, Honorary Chairman of Toyota Motor Corporation; and Mr Paul A Volcker, Ex-Chairman, Board of Governors of the U.S. Federal Reserve System.
Ex-officio members of the Council are the Chief Secretary for Administration, the Financial Secretary, the Secretary for Trade and Industry and Head of the Central Policy Unit.
Photo:Photo shows Mr Tung and CECIA members posing for a group photograph before the meeting.
End/Wednesday, November 17, 1999
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