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Following is the speech by the Chief Executive, Mr Tung Chee Hwa, at the luncheon for the President of the Czech Republic, H E Vaclav Klaus, at Government House today (April 16):
Mr President, Mrs Klausova, ladies and gentlemen,
It's a great honour to welcome you to Hong Kong. We are also delighted that you have chosen Hong Kong as the first stop of your state visit to our great nation.
Since the reform and opening of the People's Republic of China more than 25 years ago, there have been enormous changes on the Mainland. Indeed, we have seen dramatic and breathtaking progress in the social, political and economic fronts in our country. A progress that we are all very proud of. I would like to take this opportunity to talk more about the trade and economic prospects. The economy of China has grown at a steady pace of more than 7% a year, and external investments continue to flow in. The World Bank predicts that by 2020, China will be the world's second or third largest economy. China's success is not just manufacturing, but also an extremely attractive market for international companies. China's accession to the World Trade Organisation in 2001 marked another milestone in our nation's road to becoming a major player in the global economy.
At the same time, Hong Kong's own economic recovery is gaining steam after several years of painful restructuring. Our economy is forecast to grow by 6% this year. Property and stock markets have redoubled and rebounded, and unemployment is slowly but surely declining. The Central Government has been strongly supportive of our efforts to restructure our economy. Also, we are working ever more closely with the Central Government, under the "One Country, Two Systems" concept, which has proven highly successful since the reunification in 1997.
Mr President, Hong Kong is determined to maintain its position as the premier business platform for the world to enter the Mainland market, and for Mainland companies to reach out to the world. Recently, we have made significant progress in enhancing our co-operation with the Mainland. The implementation this year of the Closer Economic Partnership Arrangement (CEPA), a free trade agreement between Hong Kong and the Mainland, will give Hong Kong companies and professionals greater access to the huge and growing Mainland market. This arrangement is equally applicable to international businesses, including Czech companies operating in Hong Kong, irrespective of their country of origin.
With further co-operation with our neighbouring Guangdong Province, Hong Kong is best positioned to serve as the business and logistical hubs of the Pearl River Delta region, which houses one of the most advanced manufacturing bases in the world.
As the first among the new European Union member states to establish an investment promotion agency in Hong Kong, I am confident that Czech companies will take advantage of the opportunities brought about by CEPA and the developing Mainland market. Mr President, I look forward to the deepening of our bilateral trade relationship, which has already seen a healthy growth of 10% a year over the last five years.
Mr President, the Czech Republic has successfully transformed itself into a vibrant market economy, which now attracts more foreign direct investment per capita than any other countries within the Central and Eastern Europe. Hong Kong will certainly benefit from closer trade and economic relations with your country. I would also like to congratulate you, Mr President, and the Czech Republic, on your formal accession to the European Union on May 1, which I am sure will bring more prosperity to both the Republic and the EU as a whole.
Mr President, it is a great honour for me to have you with us today. Now, I would like to ask everyone to stand and raise your glasses with me in a toast:
"To you, Mr President, Mrs Klausova, and to the increasingly friendly and prosperous relationship between the Czech Republic and the Hong Kong Special Administrative Region of China."
Ends/Friday, April 16, 2004
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