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

The Chief Executive, Mr Tung Chee Hwa, today (April 29) called for support from the US Congress to approve the granting of Permanent Normal Trade Relations (PNTR) status to China.

Mr Tung told a visiting US Presidential Delegation that China's accession to the World Trade Organisation would definitely benefit world trade, including the United States, China and Hong Kong.

"According to various forecasts, following accession to WTO, China's external trade and foreign direct investment in China will double within six to seven years.

"The opportunities in the years ahead would be enormous. This will definitely benefit U.S., China and Hong Kong," Mr Tung said.

At a lunch he hosted at Government House for the visiting delegation led by US Secretary of Agriculture Dan Glickman, Mr Tung stressed that it was in American business interest for the U.S. Congress to approve the PNTR legislation.

"By approving PNTR legislation, U.S. Congress would secure very significant market access in the Mainland Chinese market. The United States would not have to make any concession.

"Otherwise, a significant portion of the business opportunities in the mainland of China may go to European and Japanese companies," he said.

Mr Tung said that as the Mainland and the US were Hong Kong's two largest trading partners, a stable trade relations between them would be very important to Hong Kong.

He added that senior colleagues at the Hong Kong Economic and Trade Office in Washington would maintain close contacts with Members of Congress to put Hong Kong's case for PNTR to be approved.

"In coming weeks, we will continue to work hard to put to Congress the case for PNTR to be approved and to explain Hong Kong's interest in the matter," Mr Tung said.

The Chief Executive also updated the delegation on the economic recovery as well as the successful implementation of "One Country, Two Systems" in Hong Kong.

Other Government officials attending the luncheon were the Secretary for Trade and Industry, Mr Chau Tak Hay; the Information Coordinator, Mr Stephen Lam; and the Director General of Trade, Mr Joshua Law.

Photo: The Chief Executive, Mr Tung Chee Hwa, hosted a lunch for the visiting US Congressional Delegation led by US Secretary of Agriculture Dan Glickman at Government House. Picture shows Mr Tung chatting with Mr Glickman (second from the right) and other members of the Delegation before lunch.

End/Saturday, April 29, 2000

NNNN