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Following is the speech by the Chief Executive, Mr Tung Chee Hwa, at the luncheon for the President of Latvia, Her Excellency Mrs Vaira Vike-Freiberga, at Government House this afternoon (April 17):
Madam President, Professor Freibergs, ladies and gentlemen,
It is a great honour to welcome you Madam President here today. I am pleased that we can spend a few days here together in Hong Kong after your official visit to Beijing, Shanghai and Xian. I congratulate you on your very successful state visit.
Since the reform and opening of the People's Republic of China some 25 years ago, there have been enormous changes on the Mainland. You would have seen first-hand during your visit to the Mainland the dramatic and breathtaking progress in the social, political and economic fronts in our country, the progress that we are all very proud of. The achievements on the economic front are also impressive. The economy has been growing at a steady pace of more than seven per cent per annum, and external investments continue to flow in strongly. The World Bank predicts that by 2020, China will be the world's second or third largest economy. China is becoming not just a manufacturing powerhouse 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 very painful restructuring. Our economy is forecast to grow by six per cent this year. Property and stock markets have rebounded, and unemployment is slowly declining. The Central People's Government has been strongly supportive of our effort to restructure our economy. Also, we are working ever more closely with the Central Authority, under the "One Country, Two Systems" concept, which has proven highly successful since the reunification in 1997.
Madam President, Hong Kong is determined to maintain our 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 market on the Mainland. This arrangement is equally applicable to international businesses 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 base in the world.
Madam President, as for Hong Kong's bilateral relationship with Latvia, I am happy to say it is flourishing. The visa-free travel agreement implemented in October 2002 has promoted tourism and business alike, and I look forward to seeing more Hong Kong tourists taking advantage of this convenience to visit Latvia. We already have exchanges of students, and a number of Latvian professors teaching at our universities. On the cultural front, we have been fortunate enough to take in performances by the Latvian National Opera, as well as quality Latvian movies at our film festivals.
At the same time, our bilateral trade relationship has grown at an annual rate of over 12 per cent in the past four years. Hong Kong and Latvia also share many of our economic pillars, including logistics, communications, trading and financial services. There is no better time for Latvian businesses to come and see for themselves that Hong Kong would be their ideal partner in the international trade arena.
I am also delighted to note that the Latvian economy has grown from strength to strength despite the slowdown in the world economy, with an enviable annual growth of over six per cent per year over the last two years, and with an inflation kept at a very low level.
I am glad that you have chosen to visit Hong Kong at this time, Madam President, at the time when you will be joining the European Union on May 1. I am sure that Latvia, after becoming a member of the EU, will further enhance its position as the financial and trading centre of the Baltic region and for Europe. This is a great honour, and I would like you all to stand and join me in a toast:
"To you, Madam President, Professor Freibergs, and to the ongoing friendship between the Republic of Latvia and the Hong Kong Special Administrative Region of China."
Ends/Saturday, April 17, 2004
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