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Following is the speech by the Chief Executive, Mr Tung Chee Hwa, at a lunch hosted in honour of the President of the Federal Republic of Germany, His Excellency Johannes Rau, at Government House today (September 16):
President and Mrs Rau, distinguished guests, ladies and gentlemen,
It is our great honour to welcome you to Hong Kong, Mr President. We are delighted that your visit to Beijing and your meeting with President Hu Jintao have been very successful. Germany is an economic driving force in Europe, and China is increasingly becoming so in Asia. The people of China and the people of Germany have a longstanding friendship and enjoy close economic and social ties. I am sure your visit will help further enhance this very important relationship between our two great nations and foster ever more closer cooperation between our two peoples.
On July 1, 1997, China resumed sovereignty over Hong Kong after 156 years of separation. We began the process of implementing the "One Country, Two Systems" concept. I am pleased to tell you, Mr President, that with the unwavering support of the Central Government and the effort of the people of Hong Kong, the "One Country, Two Systems" concept has been turned into an everyday reality. The lifestyle and the freedoms enjoyed and cherished by Hong Kong people remain as strong as ever and protected under the Basic Law, our constitution.
However, during the past six years, we have also been confronted with unprecedented economic challenges. The Asian financial turmoil and the bursting of the asset bubble have brought us enormous damage from which we are still trying to recover. Globalisation and a rapid increase in productivity and in the quality of goods and services being produced on China's Mainland is forcing us in Hong Kong to reduce costs, improve efficiency and move up the value chain. The fact is, over the last six years, we have had to undergo difficult and painful economic restructuring which saw a substantial decline in asset prices, household income as well as a rise in unemployment.
Of course, China's rapid and orderly economic development in recent years is also bringing to us in Hong Kong unprecedented new opportunities. It is estimated by 2010 China's economy will be one of the largest in the world. We in Hong Kong are uniquely positioned to take advantage of this development.
The recent signing of the Closer Economic Partnership Arrangement ("CEPA"), the first free trade arrangement for both the Mainland and Hong Kong, creates enormous potential for Hong Kong to become a centre of production for higher value-added goods as well as a base for providing high-quality services for a vast domestic market of 1.3 billion people. In August this year, we also reached agreement with Guangdong Province to work even more closer together to develop the Pearl River Delta into the most dynamic economic region in the world. Today, this is a region of 60 million people and a GDP of US$250 billion which may well double over the next 10 years. With CEPA, with closer collaboration with Guangdong province over Pearl River Delta, there will not only be boundless new opportunities for Hong Kong citizens but also the international community who choose to use Hong Kong to conduct business with the Chinese Mainland.
Additionally, Hong Kong has many comparative advantages, including our rule of law; free flow of capital, goods and information; a level playing field; a cosmopolitan lifestyle; a transparent and efficient government; international standards and practices of doing business; and the list goes on and on. Our position as an international financial centre, a centre for trade and business, a centre for logistics and a premier tourist destination, together with our superb infrastructure and the pool of talent and professionals we possess make us a perfect gateway for multinational companies to enter the Mainland market.
Mr President, your visit signifies an important milestone in the friendship and cooperation between Hong Kong and Germany. Germany is Hong Kong's biggest trading partner among the EU member states. This year, the value of our bilateral trade grew by 22.5% in the first seven months, year on year. The German Chamber of Commerce is one of the largest chambers in Hong Kong. Over 50 German companies have established their regional headquarters here, and nearly 100 more have set up regional offices in Hong Kong. Germany is world renowned for its precision engineering, industrial prowess, and superb product design. Hong Kong enterprises are famous for their agility, versatility, and unrivalled knowledge and experience in doing business in the Mainland market. We have complementary strengths and I can see a lot of opportunities for cooperation, especially between our small and medium-sized enterprises. Mr President, I hope you enjoy your visit to Hong Kong and that with your visit, the friendship and partnership between Germany and Hong Kong will grow from strength to strength.
Now, I would like to propose a toast:
"To you, Mr President, and to the continuing friendship between the Federal Republic of Germany and the Hong Kong Special Administrative Region."
End/Tuesday, September 16, 2003
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