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Following is the transcript of the media session by the Chief Secretary for Administration, Mr Donald Tsang, after the Shenzhen/Hong Kong co-operation meeting at the Government House this afternoon (June 17):

Question: What did you discuss with Mr Li? Did you also discuss the possibility of setting up a free trade zone between Shenzhen and Hong Kong? Why are these agreements so important and how is Hong Kong going to benefit from these agreements?

Chief Secretary: What we discussed was an area of land which is along Shenzhen River, which is a very large piece of land right at the boundary of the two places. We believe it has potential for development, but there are huge development costs involved and we have to look into the feasibility of it. We have to find a proposal which is able to meet the development cost, which is internally financially viable and would bring benefits to the people of Hong Kong and Shenzhen. What we want to do is to set up a research team. Our Housing, Planning and Lands Bureau will be representing Hong Kong to have discussions with its counterpart in Shenzhen and to explore the possibility of it. But there are restrictions involved.

Question: What do think is the significance of these agreements and what have come out from this meeting today?

Chief Secretary: These agreements signify the depth and breadth of co-operation between Shenzhen and Hong Kong and also signify the possibility we should explore furthering our co-operation to the benefit of the people of both sides. It covers a wide spectrum from trade and tourism to environmental protection. All of these affect the livelihood of the people of both sides and I believe they are going to bring significant benefits and prevent unnecessary redundant investment by the other party.

(Please also refer to the Chinese portion of the transcript.)

Ends/Thursday, June 17, 2004

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