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The following is the speech (English only) by the Chief Executive, Tung Chee Hwa, at a banquet in honour of the President of the Government of Spain, Mr. Jose Maria Aznar, at Government House today (June 29):

Mr. President,distinguished guests,ladies and gentlemen,

I am delighted, and honoured, to welcome you Mr. President to Hong Kong. I understand you just had a very successful visit to the Mainland of China and I am sure your visit will bring closer ties and co-operation between the people of China and the people of Spain. I sincerely hope that you also have an equally enjoyable visit to Hong Kong. I know this is your first visit to Hong Kong, but I hope it signals the first of many more to come. You and members of your very important delegation are assured of a warm welcome any time you choose to visit our home.

I have read with admiration the process of gradual and steady reform that you have been setting in train over the past four years in Spain. Your philosophy to 'liberalise, privatise and deregularise' certainly strikes a familiar chord in Hong Kong. And it has certainly hit the right note in Spain judging by the overwhelming success of your recent election victory. I would like to wish you all the best, and ongoing success with your reform agenda, during your second term as President.

Mr. President, in two days' time Hong Kong will celebrate its third anniversary as a Special Administrative Region of China. In the three years since Hong Kong's return to the motherland, Hong Kong people have been successfully running Hong Kong under the unprecedented concept of "One Country, Two Systems" with a high degree of autonomy as stipulated in our constitution the Basic Law. "One Country, Two Systems" is working very well in Hong Kong. And I hope that during your visit, Mr. President, you and your delegation will be able to see, first hand, how Hong Kong is moving ahead confidently and proudly under this unique concept.

Mr. President, your visit to the Mainland of China earlier this week, and to Hong Kong today, comes at an opportune time for this part of the world. China's economy is already the seventh largest in the world and in the very early stage of the 21st century will surely become one of the largest. China will soon be entering the World Trade Organisation and we in Hong Kong believe this will open up significant opportunities for local and international business.

Bilateral trade between Spain and Hong Kong amounted to 1.8 billion US dollars in 1999. I am sure there is a lot more room for expansion. I would particularly welcome more Spanish companies to invest or locate their operations in Hong Kong. With our ideal location and wealth of experience of doing business in this region, Hong Kong is happy to provide a gateway for Spanish companies to showcase their products and access to the hugh Mainland market and Asian markets as a whole. I would like to mention that Spanish companies that are already here are doing well. They were involved in the construction of now one of our landmarks, the Ting Kau Bridge, and they were also involved in the work on the Kowloon Station as well as providing rolling stock for the Airport Express Railway.

This Spanish experience serves as an excellent example of the opportunities that await good quality companies willing to make a commitment to this region. With the globalisation of trade, we hope to see and would like to help to bring about a much stronger presence of Spanish companies and enterprises in this part of the world. Mr. President, we welcome visits such as yours. Such a high-level delegation will reinforce and strengthen the bonds that already exist between our two communities. But it will also help highlight the untapped potential of this region for Spanish companies and investors, and those from the wider European market.

Mr. President, just a few moments ago we were exchanging notes about the importance in the role, the unique role of Spain, vis-a-vis its relationship with South America and Latin America. And indeed Spain can play an equally effective role for Hong Kong buisnesses who are interested to enter that huge market, the South America and Latin America market, and these are indeed areas where our two communities should be able to explore together.

Mr President, distinguished guests, once again it is my great privilege and honour to welcome you all to Hong Kong. I look forward to building an even stronger relationship between Hong Kong and Spain in the future. And I hope that you take back to your country fond memories of your visit to Hong Kong and to China.

Ladies and gentlement, I would ask you to join me in a toast to President and Mrs Aznar, and to the people of Spain.

Photo : The Chief Executive, Mr Tung Chee Hwa, and the President of the Government of Spain, Mr Jose Maria Aznar, pictured before the bilateral meeting.

End/Thursday, June 29, 2000

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