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A key issue amongst all the initiatives Hong Kong was pursuing to make itself a world class city in Asia was to clean up the environment, the Chief Secretary for Administration, Mrs Anson Chan, told the Dutch business community in Amsterdam.

Speaking at a business luncheon organised by the Hong Kong Trade Development Council, the Netherlands Foreign Trade Agency (EVD) and the Hong Kong Economic and Trade Office, Brussels, today (Amsterdam time June 20), Mrs Chan said Hong Kong had embarked first on an accelerated programme to clear the air.

"The raft of measures we are implementing should see an improvement in air quality within the next 18 months to two years as we switch to cleaner fuels," she noted.

"In the longer term, we have already embarked on a programme to increase the size of our more environmentally-friendly rail network by 70 per cent over the next 16 years."

The Chief Secretary pointed out that Hong Kong could learn from the Netherlands about protecting the environment and could draw on the experience of the country, Germany and France in dealing with cross-border pollution problems.

She also highlighted the bonds and similarities between Hong Kong and the Netherlands, which she said had nurtured a strong trade and investment partnership between the two. This relationship was poised to become even stronger and more important in the years ahead.

Turning to Hong Kong's political and economic developments since the handover, Mrs Chan reassured the guests that the 'One Country, Two Systems' principle and the high degree of autonomy provided for under the Basic Law had been strictly adhered to since the transition.

"There has been no interference from the Mainland in the running of Hong Kong. You will find no 'hotline' to Beijing in my office, nor in the Chief Executive's for that matter, that is ringing off the hook with instructions from the Central Government. It has been made abundantly clear - in word and deed - that the running of Hong Kong is entirely a matter for the people of Hong Kong," said Mrs Chan.

"Hong Kong's political transition was a seamless exercise although we still need to do more in the international community to explain just how successful that transition has been," she said.

The Chief Secretary noted that it was economic rather than political change that had occupied most of Hong Kong's energy in the past three years.

"And it soon became clear that we needed to reform and revitalise our economic and social fabric, across a spectrum of sectors, if we were to remain competitive in the knowledge-based, global economy of the 21st Century," she said, adding that the reforms and initiatives that had been set in train in Hong Kong were very comprehensive.

Mrs Chan also took the opportunity to dispell the misconception that Hong Kong's role as the pre-eminent international conduit for China would diminish once China joined the WTO.

"Hong Kong already has a very deep pool of experienced professionals who can be called upon as China's markets become more closely aligned with global practices," she said.

The Chief Secretary pointed out that Hong Kong, as the quintessence of free trade, open markets and ongoing liberalisation, was in the best position to facilitate the significant changes that would take place in the Mainland within the next decade or two.

Mrs Chan highlighted the far-reaching impact of China's becoming a member of the global economy. "China's accession is not just about business opportunities. It goes much deeper than that. It is about strengthening economic and social stability in the region. It is about ensuring that differences on trade issues are resolved sensibly. It is about developing the global economy on responsible, rules-based principles. It is about maintaining a steady momentum of growth for the betterment of people everywhere," she said.

Photo: Mrs Chan delivering a keynote speech at a business luncheon in Amsterdam.

End/Tuesday, June 20, 2000

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