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Following is the speech by the Chief Executive, Mr Tung Chee Hwa, at a banquet in honour of the Prime Minister of Ireland, Mr Bertie Ahern, at Government House this (January 21) evening:

Mr Prime Minister, ladies and gentlemen,

It is a great honour for me to welcome you back to Hong Kong. I would like to congratulate you on your successful visit to the Mainland. I know your meetings in Beijing will enhance the already close relationship between China and Ireland.

When you last visited Hong Kong in 1998, we were working hard to implement the "One Country, Two Systems" concept. Today, you will be able to witness first hand that "One Country, Two Systems" continues to be a living, breathing reality. Hong Kong society is free, pluralistic and based on the rule of law.

When you last visited Hong Kong in 1998, we were just being hit by the Asian financial turmoil. Indeed, we have gone through six and a half years of very painful economic restructuring brought about by the bursting of the asset bubble and the rapid pace of globalisation. The speed of economic development on the Mainland has also necessitated us to reposition ourselves. Now the economic restructuring is bearing fruit. I hope during your stay in Hong Kong, you will be able to feel the vibrancy of our economy.

Like Ireland's membership in the European Union (EU), Hong Kong's return to China under "One Country, Two Systems" has given us even greater access to a massive, increasingly affluent market. As you have seen this week, China's rapid and orderly development has been remarkable. Hong Kong businesses and professionals through co-operation initiatives such as CEPA and Pan-Pearl River Delta are now taking advantage of the greatly expanded market opportunities.

We in Hong Kong have deep admiration for the great progress that Ireland has made over the past years. In 1987, Irish GDP per capita was 69% of the EU average. By 2003, it had reached 136%. It is now the third highest in the European Union. In 1987, unemployment rate was 17% and by 2003 it was only 4%, and government debt shrank from 112% of GDP down to 33%. What a remarkable success. Many congratulations indeed. Undoubtedly this is due to the hard work of all the Irish people, this must also be because of the foresight and wisdom of the political leaders like yourself. I would also like to commend you for the foresight you have shown in the development of your Asian Strategy with particular emphasis on China. I know all of us would benefit greatly from such a strategy.

In recent years, Ireland-Hong Kong ties have grown deeper and more robust. The most prominent sign of this has been the many visits each way by high-level officials, particularly since you were last here. At the same time, our bilateral trade has grown rapidly, at a rate of over 20 per cent a year since 1999. Indeed, from now on, Irish business can take advantage of CEPA to explore the Mainland market from Hong Kong. There are about 1,800 Irish nationals living in Hong Kong - the largest Irish community in Asia - and many of them are active in our business, professional and educational fields. Last year, there was tremendous growth in the number of Irish tourists who came to experience Hong Kong's unique blend of Eastern and Western cultures.

It's natural that Ireland and Hong Kong are working more closely together with each other, because we have so much in common. Both of our economies are small, but both are increasingly influential in our respective regions. Both of our economies are export-oriented and strong in financial and other services. Ireland and Hong Kong are both endowed with talented, skilful, hardworking and English-speaking populations. We are both attractive destinations for foreign investment and gateways to vast markets - in your case, the EU, and in our case, the Mainland of China and the rest of Asia.

I want to thank you again for honouring us with this visit. It's the strongest gesture you could make of your commitment to nurturing the important relationship between Ireland and Hong Kong. I want you to know that you, and indeed all Irish, are always welcome in this Asia's world city.

And now, ladies and gentlemen, please rise and join me in a toast:

"To you, Prime Minister, and to the ever-growing friendship between Ireland and the Hong Kong Special Administrative Region."

Ends/Friday, January 21, 2005

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