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The following is a transcript of the Secretary for Commerce, Industry and Technology, Mr John Tsang, speaking to the media after officiating at the Opening Ceremony of the Hong Kong Watch & Clock Fair 2004 this morning (September 1):

Reporter: Is there any new arrangement for the watch and clock industry under the CEPA?

SCIT: There have been some suggestions to us that the percentage determining the origin rules may not be able to benefit some sectors of the watch and clock industry that are interested in exporting their products to the Mainland. This is particularly relevant to the products that are in the higher end which are more expensive. We are looking into alternatives, such as process, to determine the country of origin, rather than just a mere percentage of costs.

Reporter: How is the response from the Mainland?

SCIT: We are quite encouraged by their response.

Reporter: Any further arrangements under CEPA for other industries?

SCIT: As you know, the Financial Secretary has announced that more than 700 products would be included in the second phase of CEPA. From now on, probably until October, we intend to work with the Ministry of Commerce to identify the exact country of origin rules that will determine which are Hong Kong products. That will take us a couple of months.

Reporter: How can you ensure that the rights and jobs of local workers are protected?

SCIT: Simply to ensure that the majority of the process, the important process that would require labour input, would be done here in Hong Kong.

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

Ends/Wednesday, September 1, 2004

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