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The Chief Secretary for Administration, Mrs Anson Chan, told German businessmen in Hamburg that German companies would do no better than to find themselves a Hong Kong partner or facilitator if they wanted to crack the China market.

Speaking at a business luncheon today (June 19, Hamburg time), Mrs Chan highlighted the economic interdependence between Hong Kong and the Mainland, and the vital link Hong Kong played as a springboard for international companies wanting to establish a foothold in China.

She dispelled the misconception that Hong Kong's role as a gateway to the Mainland would diminish once China joined the WTO. "We welcome China's accession and are anxiously awaiting the enormous opportunities it will bring," she said.

"There are forecasts that within six years, China's foreign trade and foreign investment will double. Its GDP was estimated to be 13% higher by 2010. These figures, point to enormous opportunities for Hong Kong and the entire trading world."

The cultural, commercial, and historical links with the Mainland and the knowledge and expertise the local entrepreneurs had built up over decades of trading and doing business with China gave Hong Kong an unrivalled advantage, Mrs Chan stressed.

"I believe this in-built advantage will be enhanced rather than diminished by China's accession to the WTO," she said.

The Chief Secretary also pointed out that Hong Kong was in the best position to facilitate the significant changes that would take place in the Mainland within the next decade or two.

"Hong Kong is the best example I can think of to highlight the benefits of free trade, open markets and ongoing liberalisation. As China embarks upon this profound economic transformation, which WTO access will bring, Hong Kong can act as an agent of change by helping to enhance professional standards in the legal and accounting sectors in the Mainland.

"This in turn will lead to greater transparency and openness in the Chinese market and bring our country even closer to the international community."

Mrs Chan, however, stressed that Hong Kong could only be of value in this process if it maintained its own unique identity under "One Country, Two Systems".

And on this subject, she told her audience that Hong Kong today continued to be the same free, open, tolerant and pluralistic society it was before the Handover.

"The Beijing leadership has scrupulously honoured the promises and commitment to Hong Kong. There has been no interference from the Mainland in the running of Hong Kong," she said.

"'One Country, Two Systems' has been transformed from a concept into a working reality. The ongoing and successful implementation has been acknowledged by various international agencies and governments, including the IMF, the British Government, the US Congress and your own European Commission."

Turning to the bonds between Hong Kong and Germany, the Chief Secretary pointed out that the two had a very strong and important trade and investment partnership. The strength and depth of the foundations which underpinned the existing trade, investment, business and people-to-people bonds between Hong Kong and Germany would make this relationship become even stronger and more important in the years ahead.

End/Monday, June 19, 2000

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