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Following is the full text of the speech delivered by the Chief Executive, Mr Tung Chee Hwa, at the "Pearl River Delta: Forging a New Force" Conference at the Hong Kong Convention and Exhibition Centre today (July 8):
Chris, Ted, Ean, distinguished guests, ladies and gentlemen,
It is my pleasure to open this conference this morning. I congratulate the Chamber and the South China Morning Post on organising this event and extend a very warm welcome to you all, and particularly to those who have come from the Pearl River Delta to take part in the discussion today.
I really think it is more appropriate to call this, not as a conference, but a family gathering. As you all know, a predominant proportion of Hong Kong people can trace their roots to the cities and townships of the Pearl River Delta, be it Guangzhou, Shunde, Dongguan, Zhongshan, Nanhai and in fact the list goes on and on. This relationship, the relationship between Hong Kong and the Pearl River Delta is not only just therefore neighbourly relationship but one of kinship and brotherhood, and it is this ethnic relationship that has provided the strongest foundation for co-operation between Hong Kong and the Pearl River Delta.
Perhaps I should open my talk today by looking at how Hong Kong has transformed from being a small entrepot 50 years ago to becoming a thriving metropolis, a successful world city of Asia today. Hong Kong's success in the past has been built upon the rule of law, efficient and clean Government, good corporate governance, level playing field, efficient infrastructure, clustering of professionals of all kinds providing all sorts of services and the list goes on and on. But much of the success of Hong Kong today is also due to the quality and the spirit of the people of Hong Kong. Entrepreneurial spirit, being very creative, quick at seizing opportunities, hard work, desire to improve oneself and perseverance in face of adversity and all these, what I call the Hong Kong spirit, had made what Hong Kong it is today. But let us also understand this, and Chris earlier on had mentioned this, Hong Kong's success due large part also to what is happening, what was happening on the Mainland, what will be happening on the Mainland. Up to until 1978, the Mainland was not open. Hong Kong was the bridge for the rest of the world to look at Mainland China and for Mainland China to connect to the rest of the world. Being that process, we Hong Kong correctly positioned ourselves, became successful and created wealth and prosperity for ourselves at the same time, and indeed at that same time we also contributed to China's development. After 1978, Mainland China became partially opened and our manufacturing base moved across the border, mostly to the Pearl River Delta. As a result of that we become a very successful service centre, providing financial services, logistic services and continued to play the role as a bridge between the rest of the world with Mainland China and vice versa. And in that process we continued to create wealth for Hong Kong while at the same time making contribution to China's development.
But now in the 21st century, China is totally opened up. China is becoming a member of WTO. China is not only the largest manufacturing and production centre for the world, but also potentially the largest, if not one of the largest consumer markets in the world. The whole world is competing to move into the Mainland of China and it is up to Hong Kong to seize this opportunity, to seize this moment by participating in the future development of our own country. Not just because we have the ethnic relationship but also because of the wealth of experience we have accumulated over the last 50 years and indeed because of the many competitive advantages we have.
Let us now also look at one other aspect - there were always questions asked of me: why can't Hong Kong just be Hong Kong? why do we have to do all these things? Well, I tried to explain just a few minutes ago why we need to do this because it is in Hong Kong's own interest to do so. My own view is that a city economy will never reach its full potential if it's developed in isolation, this is not possible. You look at San Francisco. San Francisco is not just about the beautiful waterfront or the Bay Area, but it is about the whole Silicon Valley. New York is not just about Staten Island, Brooklyn, Queens, Manhattan, etc, etc. But it is about what is beyond New York, what is the Tri-State, in fact beyond the Tri-State. London is not just about Greater London, it is about southeast of the United Kingdom, it is about Cambridge, Oxford, it is about the west of the United Kingdom, it is about almost more than half of the United Kingdom. So it is the regional economy which actually, eventually produces and develops the full potential of a city, and the Pearl River will help to develop Hong Kong's potential as it will help to develop Guangzhou's potential, Shenzhen's potential, Dongguan's potential and all the cities within the Pearl River Delta. I believe this strongly and I think experiences elsewhere tell us that we need to be working together and together closely.
We often ask ourselves, what are we? what is Hong Kong? And I have many times said Hong Kong is a world city of Asia and this is how we position ourselves. A World City of Asia, one of the major cities of China in the heart of the most dynamic region of the Chinese economy, the Pearl River Delta. Our competitive strength is many: what can we offer? what can we offer to the Pearl River Delta? We operate under strong rule of law, sound market principles and good corporate governance. We offer good, useful overseas markets contacts with them. We are a successful international financial centre for PRD companies if they so wish to raise foreign capital here in Hong Kong. We are a centre for trade, transport and logistics, we have an abundance of professionals whether they be accountants, lawyers, business professionals and the list goes on and on and on, and I don't need to mention any more than just these few. And what has the Pearl River Delta got to offer? The land -- abundance of land, good quality inexpensive labour force and indeed, like Hong Kong, excellent infrastructure which is by the day more and more well connected with Hong Kong. And mind you, land is not just for factories - but land for leisure, land for all the other purposes because we are short of land in Hong Kong. Well, the Pearl River Delta is recognised as one of the largest manufacturing and production centres in the world. It offers Hong Kong businesses the opportunity to invest and it is a huge consumer market. It is a consumer market of over 40 million people, a consumer market who is gaining wealth by the day, and the list goes on too. And indeed we have many complementary, competitive advantages, the total sum of which is a dynamic economic region.
Hong Kong and the PRD together actually have a population of over 50 million. The combined GDP of the Pearl River Delta and Hong Kong today is in the area of US$250 billion. If our economies continue to grow at the same rate, as in the past, in 10 years' time the combined GDP will be close to US$500 billion, a very large economy indeed and if you look down the list you will see this figure surpasses many and some of the OECD nations, so it is a very large economy. And what we need to do, what everyone sitting here I hope you will do, is let us talk through and think through what we can do. Seize this moment and try to work very hard to create wealth for all our citizens.
You may then say, Chief Executive, what can we do as Government? What do we need to do as Government? What the Government can do, what we can do in Hong Kong is really try to knock down the barriers for this to happen. Try to create the right environment for this to happen, and to build the physical infrastructure for all this to happen. Well, what are they? Let me tell you some of these things which we need to be doing as Government. Firstly, of course it is about how do we improve the flow of people and goods across the border and we need to do this within "one country, two systems" arrangement. We have actually streamlined border clearance procedures. The number of passengers cleared within 15 minutes at Lowu has increased from 84 per cent to 87 per cent since October 2001, despite an increase of daily passengers from 240,000 to 270,000. About 20 per cent of container trucks can now make more than two single trips a day at Lok Ma Chau. The completion of Western Corridor in 2006 and Lok Ma Chau Spur Line in 2007 will vastly improve the cross-boundary capacity of between Hong Kong and Shenzhen and therefore the Pearl River Delta. Further measures are being looked including the co-location of customs and immigration services, and enhancing 24-hour customs clearance service for goods vehicles. The Airport Authority is studying the feasibility of developing express cargo service and passenger ferry service connecting major ports in the Pearl River Delta and Hong Kong International Airport. We are also looking at the feasibility of building a regional express line linking Hong Kong with Guangzhou via Shenzhen within one hour by rail.
Let me emphasise, we know the congestion at Lowu and Lok Ma Chau is not only an irritation, not only inconvenience, but huge economic loss to both Hong Kong and the Pearl River Delta. We also know how much more needs to be done. Together with the Central Government and the Guangdong Authorities, we will do as much as we can, as quickly as we can. Relieving priority, making the flow of goods and people more smoothly is our priority work. You may even ask me, when will you be satisfied? When none of you complain to me again I will be satisfied. And only then I will be satisfied. One other piece of news I'd like to give to you because I think this has gone by largely unnoticed, is that since December last year, the Mainland authority have started issuing three-year multiple entry business visit endorsements to Mainland visitors. I think this part you have all noticed. The second part you probably have not noticed. Actually at our suggestion, several new measures were announced in May this year by Mainland authorities to further facilitate Mainland residents to visit Hong Kong including further relaxation of restrictions previously applicable to three months business visit endorsement. I encourage Hong Kong people and businessmen to make use of these new measures to invite your Mainland relatives, friends, business contacts to come and visit Hong Kong more often. These measures make it easier, for instance, for Hong Kong businesses to invite your business partners on the Mainland to attend numerous exhibitions we have here including the one, Chris you have today. And these arrangements make it easier for a multi-national buyer to invite suppliers from the Mainland to have meetings here in Hong Kong, and etc. and etc. And I just hope that we will all take full advantage of these new measures, and that if you have any queries about this please call the Immigration Department, or if you feel strongly urged to do so call Richard Yuen in my office.
But, yes we need to knock down the barriers, we need to make it easier for businesses between Hong Kong and the Mainland, particularly between Hong Kong and the Pearl River Delta. But we need to do more than this. We should encourage more Pearl River Delta companies to come to Hong Kong and do their listing here. Under our corporate governance it will be very good, but I think we also have to bear in mind the constant complaint from such potential candidates on the Mainland that Hong Kong is too expensive for their listing and we have to bear that in mind if we are to be competitive, if we are going to be successful.
For so long, Hong Kong industrialists have relied on Original Equipment Manufacturing(OEM)to produce profit, but as we move into the 21st century, as we compete with the rest of the world, we really need to move on our own branding, to promote our own branding around the world. And this is one theme which I've been encouraging our industrialists to move on. Branding of course needs strong design support and this Government will support the universities to provide even better facilities of teaching so that our design will always be in the forefront of the world needs and that branding of our own product can be successful, and this is necessary if we are going to upgrade all the production facilities in the Pearl River Delta. We need to move on that sort of basis and again Government is there to facilitate, Government is there to make sure that education is available for those in Hong Kong who wish to get involved in moving ahead.
I think the other thing we all need to do, both Hong Kong and the cities of the Pearl River Delta, and the Guangdong Province, what we all need to do is to make both ourselves, the Pearl River Delta, all the cities of the Pearl River Delta, much more business friendly than we are today. Whether it is about customs clearance, whether it is about better physical infrastructure, whether it is about better planning and use of land, whether it is about simplification of application or licensing for licences, or different procedures for business to get on. We need to do it whether separately or together. We need to make ourselves, Hong Kong and Pearl River Delta, much more competitive, compared with some of the other regional economies on the Mainland of China. So that when people from overseas want to invest, want to start businesses, they think first of the Pearl River Delta, and we need to be competitive from that point of view.
And finally, I would like to say as a Government, and some of our bodies whether it would be Chamber of Commerce, whether it would be Trade Development Council, when we go out to promote overseas about Hong Kong, we need to promote Hong Kong and the Pearl River Delta together because the future of Hong Kong and the Pearl River Delta is totally tied together, and because Hong Kong's potential can only be fully realised if we work together with the Pearl River Delta. So these are some of the things I think we must do, we need to do as a Government.
While movement of people and goods will be made more efficient, while we jointly promote together with the various cities of Guangdong Municipal Government, Hong Kong and Pearl River Delta, we will be at the same time, vigorously ensuring that "One Country, Two Systems" concept will continue to be an everyday reality here in Hong Kong. The practice of "One country, Two systems" is the firm policy of the Central Government. It is also the desire of the people of Hong Kong and desire of the entire nation. It is indeed in the national interest of China as a whole to do so. "One country, Two systems" will also give Hong Kong the necessary competitive advantage as we become Asia's World City and one of the major cities of China.
Ladies and gentlemen, at the dawn of the 21st century, Hong Kong and the Pearl River Delta have reached a new stage of development. China's accession to the WTO and the rapid progress of the many regions on the Mainland have provided us with new opportunities but also new challenges. There is no room for complacency. Hong Kong and the Pearl River Delta must work together, strengthen our co-operation and build on our complementary competitive advantages. Together we will scale new heights.
The conference today is most timely and very important. I look forward to you sharing your ideas and suggestions with us on how we can do better and how I wish we would do it as quickly as we can. I wish you a fruitful and rewarding conference.
Thank you very much.
End/Monday, July 8, 2002
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