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Following is the speech (translation) "Hand in Hand We Build a Better Hong Kong" by the Chief Executive, Mr Tung Chee Hwa, at the Bank of China (Hong Kong)'s seminar on CEPA this morning (September 19):
Ladies and gentlemen,
Good morning! The signing of the Closer Economic Partnership Arrangement (CEPA) between the Central Government and the Hong Kong Special Administrative Region (HKSAR) Government has roused an enthusiastic response and much discussion in this city. Today's seminar will look into the way forward for Hong Kong's economy to see how our overall interests and long-term development can benefit from the opportunities afforded by CEPA. I think this is a very worthwhile endeavour in the pursuit of consensus among the different sectors in Hong Kong.
Over the past six years, with the advent of globalisation and the bursting of the bubble economy, Hong Kong has had to reduce its costs, improve its efficiency and move up the value-added chain. Though we are undergoing a painful process of fundamental economic restructuring, the momentous economic advances in the Mainland are bringing us enormous opportunities. We must reposition ourselves for future development. Backed by the Mainland and engaged globally, Hong Kong must consolidate and enhance its position as an international financial and logistics centre, a preferred tourist destination and a trade and business services hub, moving up the value-added chain. Despite the fact that SARS affected our growth in the second and third quarters of this year, the trend of our economic figures since the third quarter of 2002, market sentiment after the signing of CEPA and the successful Hong Kong/Guangdong Cooperation Joint Conference all indicate that our repositioning and development strategies are on the right track.
The essence of CEPA lies in the institutionalisation of Hong Kong/Mainland economic cooperation. Notwithstanding our distinctive economies and markets, Hong Kong and the Mainland will foster further synergy and integration under the framework of "One Country, Two Systems". This new arrangement will help Hong Kong push through its economic restructuring and reinforce its position as an international centre for finance, logistics and producer services. It will also play a pivotal role in economic integration between Hong Kong and the Mainland, in particular the Pearl River Delta (PRD) region.
Speaking of Hong Kong/Guangdong synergy, the SAR Government has always attached great importance to this long-term relationship. Not long ago Guangdong Provincial Governor Huang Huahua and I reached consensus on a number of significant issues regarding cooperative and coordinated development. We share the view that to sharpen our competitive edge in globalisation and regionalisation, both sides must work in closer partnership to make the PRD even more prosperous and dynamic. Hong Kong and the PRD must have a long-term vision, strive to expand the frontiers of economic cooperation, speed up the construction of transportation and communications networks with neighbouring areas, and foster closer business ties with the vast midwest region and with Southeast Asia. In the advancement of regional synergy, Hong Kong, as an international financial centre and world city, will play an essential role in raising capital, pooling talent and developing market mechanisms and global networks for the PRD.
Our economy looks promising, and the mood of the people is improving too. The SAR Government is working on plans and initiatives to facilitate the implementation of CEPA and cater for Hong Kong's economic needs. And I would like to stress that with the unwavering support of the Central Government, what we seek is a competitive edge that can ensure sustained self-reliance. Hong Kong's future lies in our ability to bring our strengths and entrepreneurship into full play!
May I wish this seminar every success.
End/Friday, September 19, 2003
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