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Following is the English translation of a speech by the Chief Executive, Mr Tung Chee Hwa, at the Shanghai-Hong Kong Metropolis Development Conference today (June 2):
Mayor Xu, ladies and gentlemen,
The opening of the Shanghai-Hong Kong Metropolis Development Conference today offers a valuable opportunity for the academics, experts, entrepreneurs and stakeholders of both cities to come together for direct exchange of views and ideas. The theme of this Conference highlights the long-term positioning of Shanghai and Hong Kong. The forthcoming discussions will enable participants from both cities to share their views on the future trends of development, identify each other's strengths and weaknesses and explore ways to cooperate on a complementary basis. This helps not only promote the development of both cities but also make a greater contribution towards the development of our mother country in the 21st century.
I would like to congratulate on the success of the Conference. We owe special thanks to Mr Hu of the Hong Kong-Shanghai Economic Development Association and Mr Huang of the Shanghai Chinese Overseas Friendship Association. They have made constructive efforts in enhancing the interflow between Shanghai and Hong Kong through detailed planning and thorough preparation for the Conference. I would like to take this opportunity to share with you some of my views.
Shanghai has long been a premier city with considerable economic strength. Since China carried out reforms and opened up, Shanghai has been developing rapidly. In 1990, the Central Government put forward the idea of opening up Pudong of Shanghai as an economic locomotive to spearhead the economic development of the delta of and the area along the Yangtze River. To tie in with the planning of the Central Government, the Municipal Government of Shanghai set a strategic goal of developing Shanghai as a new international economic centre in the new century. We are pleased to note that tremendous achievements have already been made. In April this year, Pudong celebrated the tenth anniversary of its opening up. The total economic value of Pudong last year was comparable to the 1990 level of the whole of Shanghai. That is to say, another Shanghai was born over a span of ten years. For many years, considerable investments have been put on housing, amenities, cultural and sports facilities to make continual improvement in the quality of life of the Shanghai people. For a row of eight years, the whole of Shanghai has maintained double-digit economic growth, with indicators of economic and social development among the highest of the whole country. Such remarkable achievement is something that the people of Shanghai all take pride in. It is attributable to the wisdom and determination of the leaders of Shanghai as well as the hard work of the people.
I would also like to talk briefly about the situation of Hong Kong. On 1 July 1997, we established a special administrative region with high degree of autonomy under the sovereignty of our mother country. After more than a hundred years of colonial rule, it is a historic change for Hong Kong to establish a government to implement the principles of "Hong Kong people administering Hong Kong" and "one country, two systems". The transition has been very stable and smooth. The HKSAR Government has been operating effectively since its establishment. For almost three years, we have adhered strictly to the Basic Law of Hong Kong and fully implemented the unprecedented concept of "one country, two systems". With the staunch support of the Central Government, we have solved the practical problems we have encountered one by one. The authority embodied in the Basic Law is well received by the people of Hong Kong. The Basic Law has also underpinned the rule of law in Hong Kong, enhanced the stability of the entire community and safeguarded the rights of the Hong Kong people.
Despite the fact that Hong Kong was hit by the Asian financial turmoil soon after the Reunification and the economy of Hong Kong slackened together with other Southeast Asian economies, we were able to stand the test and prove the robustness of our financial system. We have taken proactive measures to further consolidate our system. The international financing activities of Hong Kong at present are more active than ever. Last week, a financial institute of the Group of Seven rated Hong Kong as a first class international financial centre, both in terms of regulatory and monitoring systems.
With the exercise of a wide range of measures to stimulate economic recovery, continuous economic growth on the mainland and the overall recovery of the Southeast Asian economies, Hong Kong recorded a GDP growth of 14.3% in the first quarter of this year. The growth was mainly driven by external trade. Further growth has been recorded in investment and consumption. The sign of economic recovery is now evident. It is estimated that our annual economic growth can be adjusted upward to 6% this year.
While implementing the "one country, two systems" concept and coping with the challenges brought about by the Asian financial turmoil, we have remained active in identifying the way forward for Hong Kong. We have set up the Commission on Strategic Development to carry out extensive consultation and conduct in-depth research. The findings point to the long-term vision of Hong Kong: Hong Kong should not only be a major Chinese city, but also develop as the most cosmopolitan city in Asia. The assessment made by the Commission on the basis of a set of criteria reveals that Hong Kong has already possessed the key features common to major cosmopolitan cities in the world. Hong Kong people are known for their enterprising spirit, free access to information, international outlook and advantageous position to profit from the Mainland for overseas expansion. These are all favorable qualities that help to realise Hong Kong's long-term vision.
To realise this long-term vision, we have started with the education and environmental protection of Hong Kong. With economic restructuring and the advent of knowledge economy, Hong Kong must set new demands of investment on education and human resources in order to maintain our long-term competitiveness. Besides, economic expansion and population growth have led to the deterioration of our environment. This has become one of the major problems that we need to address if Hong Kong is to be upgraded as a world city. We understand that long-term efforts are required to reform our education and improve our environment without delay. We have therefore started to plan and act at an early stage.
With the smooth return of Hong Kong to China, the society of Hong Kong remains stable and the way of life unchanged. The economy of Hong Kong is gradually improving under a well-defined climate. All these favourable developments of Hong Kong have prompted continually many Hong Kong people who have emigrated overseas to return to rebuild their home and career in Hong Kong. Today, the "one country, two systems" concept has been proven practicable and won worldwide recognition. This would not have been possible without the efforts of the Hong Kong people and the strong support of the Central Government.
Shanghai has been working towards its strategic objective of developing itself into an international economic centre. We also want to make Hong Kong a world city. Obviously, both cities have something in common and can certainly share experience in many aspects. Shanghai is now the biggest economic centre of China while Hong Kong is a cosmopolitan city under the "one country, two systems". Such a dissimilarity, which has long been in existence, reflects the unique but different functions the two cities can play. What Hong Kong and Shanghai have in common and in difference exemplify what experience we can draw on from each other. Such a complementary relationship is beneficial to the future development of both cities.
With the gradual removal of the obstacles on its way, China will soon gain access to the World Trade Organisation. The successful entry into the WTO will bring China's practices and regulations in alignment with world markets and systems. China will move into a new stage of opening up and play a part in the economic globalisation at a higher level. As we know, Shanghai will play an increasingly important role as an economic centre as a result of globalisation. China's admission to the WTO will add momentum to the metropolis development of both Shanghai and Hong Kong, and give us more opportunities for cooperation.
The entrepreneurs of both cities will surely make the best use of opportunities opened up for them. They will explore new areas for development and seek partnership in the field they excel in. I would like to point out to you that one of the great advantages of Hong Kong is our early alignment with world markets and systems. We have sound regulatory systems in various financial services including banking, insurance and our securities market, relatively well-developed intermediary services provided by the legal and accounting professions as well as other professional consultants, and well-established external networks in trading, communications and transportation. All add greatly to the opportunities for cooperation with Shanghai mutually beneficial to both cities.
On the financial front, it is envisaged that trading, financing and all kinds of investments will grow after China's accession to the WTO. Being major windows of financing for businesses on the Mainland, Shanghai and Hong Kong can strengthen their complementary relationship. With the advancement in information technology, global securities markets are now undergoing major adjustment together. The exchange houses in Hong Kong and Shanghai should have much chance of cooperation in this aspect. The Hong Kong Securities and Futures Commission and the authorities concerned of the HKSAR Government will play an active and supportive role towards this end.
As for professional services, an expert has pointed out that intermediary services provided by the legal professions, accountants, surveyors and other professional consultants are in great demand in Shanghai for the improvement of its market management and alignment with world markets. The Hong Kong professionals are in a better position to assist as they have longer-time exposure in international businesses and have a good knowledge of international practices.
Both Shanghai and Hong Kong have competitive edges on the trading and transportation fronts. In recent years, the Shanghai port has developed rapidly and recorded a sharp increase in its throughput. Hong Kong is now putting great efforts in the development of logistic centres. We are pleased to share our experience in this area with Shanghai. Besides, many of Shanghai leading enterprises possess the strengths for "coming out" to establish multi-national businesses. They can make good use of the international experience and wide connections of many enterprises in Hong Kong. The entrepreneurial cooperation of both cities helps Chinese enterprises to establish and strengthen multi-national businesses, and be better equipped for international economic cooperation and competition.
There is also much room for cooperation between Shanghai and Hong Kong in high technology, especially the advances in information technology. The development of the "Information Harbour" is placed on the very top of Shanghai's agenda this year. The leaders of the "Zhang Jiang High-tech Park" at Pudong have paid a visit to Hong Kong recently. Both cities still have much to share in this aspect. Many areas of e-commerce, for instance, are open for development.
Our country is now pushing forward major developments in its extensive western part. Both Shanghai and Hong Kong can play an important role by providing a wide range of services including skills, management, information, human resources as well as financing. Giving full play to our individual strengths, we can work together on a number of development projects and achieve better results.
We are glad to have many entrepreneurs and experts from various professions to join us in this Conference. I am sure your views will enlighten us further on the direction of Shanghai-Hong Kong cooperation in the long run and how to make good use of business opportunities for further cooperation.
Talented people are the keys to the metropolis development in Shanghai and Hong Kong. Exchange of talents is also essential to our cooperation. Being developed under different conditions, Shanghai and Hong Kong have cultivated their own talents, and possess their own strengths and advantages. The governments of both places have attached great importance to the exchange of talents and their officials have exchanged visits frequently. The tertiary institutions of both places have forged close ties and joined efforts in organising courses. Research centres have also been set up to undertake studies together. Greater efforts should be made to boost exchanges between Shanghai and Hong Kong. We have a common need in strengthening our cooperation. Let us work in concerted efforts and forge ahead together.
Finally, I sincerely wish the Conference a great success!
Photo: The Chief Executive, Mr Tung Chee Hwa, had a packed schedule in Shanghai. In the morning, Mr Tung officiated at the opening ceremony of the Shanghai-Hong Kong Metropolis Development Conference, followed by a meeting with the Mayor of the Shanghai Municipal People's Government, Mr Xu Kuang-di. Mr Tung then visited the Shanghai Urban Planning Exhibition Centre, Shanghai Stock Exchange, Shanghai Museum and Shanghai Library. Photo shows Mr Tung giving a speech at the opening ceremony of the Shanghai-Hong Kong Metropolis Development Conference.
End/Friday, June 2, 2000
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