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Following is the speech by the Chief Executive, Mr Tung Chee Hwa, at a banquet in honour of the Right Honourable Paul Martin, Prime Minister of Canada, at Government House this (January 22) evening:

Prime Minister, Mrs Martin, friends, ladies and gentlemen,

On behalf of the people and the Government of Hong Kong, I am honoured to offer you, Prime Minister and Mrs Martin, a very warm welcome this evening. I would like to congratulate you and your delegation on your successful visit to the Mainland. I know your meetings in Beijing will enhance the already close relationship between China and Canada.

Prime Minister, on July 1, 1997, China resumed sovereignty over Hong Kong after 156 years of separation. On that day, we began implementing the concept of "One Country, Two Systems". I am pleased to tell you, that with the staunch support of the Central Government and the hard work of the Hong Kong people, "One Country, Two Systems" is today much more than a concept. It is a thriving, everyday reality. The lifestyle and the freedoms enjoyed and cherished by Hong Kong people are enshrined in the Basic Law and remain as strong as ever.

Soon after 1 July 1997, we were also hit unexpectedly by the Asian financial turmoil. Indeed, we have gone through six and a half very painful years of 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. Economic restructuring took time but it is now bearing fruit. I hope during your stay here, although very short, you will be able to feel the vibrancy of our economy.

On your brief visit to Beijing, you must have seen the enormous progress that China is making in nation building. Indeed, the vigour and dynamism of China in the economy in the years to come will not only create wealth for Chinese people, but will also be crucial for global trade and finance. China's growing prosperity is also of enormous benefit as we in Hong Kong continue our efforts to invigorate our economy.

Prime Minister, I would like to take this opportunity to congratulate you on the enormous progress that Canada has made over the last decade. Years after years, Canada recorded impressive economic growth and budget surpluses; indeed, more than US$35 billion of debt was paid down. You made tax cuts and invested heavily in health care. You were the envy of other nations around the world. As Finance Minister and then as Prime Minister, your foresight and wisdom has made such outstanding achievement successful.

Prime Minister, Canadians have a reputation as compassionate, engaged global citizens. You yourself have demonstrated these qualities by changing your itinerary so you could visit regions that were ravaged by last month's tsunamis. These qualities have also been amply demonstrated by the generous financial contributions of both your Government and your citizens, and by the Canadians who are helping relief efforts on the ground in these devastated areas.

Canada is also a famous place to live, indeed a great place to live, with a lifestyle that is envied around the world. Hong Kong people are certainly familiar with Canada. And that is what makes the relationship between Canada and Hong Kong so special - its foundation of family and social connections. Furthermore, tens of thousands of Hong Kong and Chinese students are studying in Canada. And for those in Hong Kong wanting a Canadian education, we have excellent Canadian schools and many dedicated Canadian teachers giving their best to help our children reach their full potentials. The 1.2 million Chinese-Canadians and the quarter of a million Canadians living in Hong Kong have built such a rich network of business, educational and cultural ties. These ties are the sturdiest imaginable, because they are rooted not in diplomatic protocols but in people-to-people relationships.

Another prime factor is business. There are 150 Canadian companies in Hong Kong, with more and more arriving or being established all the time. Supported by the expanding Mainland market, the bilateral trade between Hong Kong and Canada has been growing strongly. And significantly, nearly 30 per cent of the total trade between Canada and the Mainland of China is routed through Hong Kong. That's a sign of the crucial role that Hong Kong plays as the premier platform for international companies to do business with the Mainland. Indeed, Canadian business can now take full advantage of the greatly expanding market opportunities on the Mainland through initiatives such as CEPA and Pan-PRD cooperative arrangements.

Prime Minister, the early history of Canada's economic development was marked by the laying of vast distances of railway track, which opened up brilliant new possibilities. Well, the tracks may have stopped in British Columbia, but Canadian business people need not stop there. I urge Canadian companies: keep heading west, to Hong Kong. Once here, you can set up your base and venture in any direction you like, into the hinterland, in pursuit of the brilliant new possibilities that abound in this rapidly growing part of the world.

Prime Minister, I want to thank you again for hououring us with the visit. It's the strongest gesture you could make of your commitment to nurturing the important relationship between Canada and Hong Kong. I want you to know, indeed all Canadians to know, that you are always welcome in this Asia's World City.

Ladies and gentlemen, would you all rise, I want to propose a toast:

"To the Prime Minister and Mrs Martin, to the longstanding friendship between Canada and Hong Kong, and to the growing family of folks who call themselves both Canadians and Hong Kong people. To Canada."

End/Saturday, January 22, 2005

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