********************************************

   Following is the speech (English only) by the Acting Chief Executive, Mr Donald Tsang, at the Hong Kong Exporters? Association 50th Anniversary Gala Dinner tonight (May 13):

Cliff, distinguished guests, ladies and gentlemen,

I am delighted to join the Hong Kong Exporters? Association tonight in celebrating its golden jubilee. I would like to extend my warmest congratulations to the Association on this very important milestone in your long history of serving Hong Kong.

As an organisation formed to safeguard the interests of Hong Kong?s export trade and expand opportunities for exporters, the HKEA has provided much-treasured advice to the Government over the years. You have also rendered a vital service to your members by disseminating information, by hosting luncheons, seminars and export marketing activities, and by participating in trade shows and exhibitions. The Gifts and Premiums Fair you co-organise with the Trade Development Council is the largest of its kind in Asia. No visit to the fair would be complete without stopping by the ever-expanding HKEA Pavilion.

External trade is a key pillar of our economy. We are the world?s 11th largest exporter of goods. The value of Hong Kong?s exports last year topped 2,000 billion dollars, an impressive 16 per cent rise over 2003. Not only was this an all-time high in value, the volume of goods exported from Hong Kong has grown 800 times since the Hong Kong Exporters? Association was founded in 1955. Even during the SARS outbreak a couple of years ago, the one sector of our economy that kept growing steadily was external trade. The HKEA has gone from strength to strength over the years, helping Hong Kong to grow along with it.

There have been several catalysts for Hong Kong?s recent economic recovery, and one of them has been our free trade arrangement with the Mainland, CEPA. As CEPA is broadened and deepened, there are now over 1,000 Hong Kong products that enjoy zero tariff when imported into the Mainland. At the same time, Hong Kong service providers, including those engaged in logistics and distribution, enjoy ?first mover? advantage in tapping China?s huge market. We will continue to listen to the needs of the Hong Kong business community as we fine-tune CEPA in partnership with our Mainland counterparts.

CEPA is just one aspect. I don?t have to remind a group of Hong Kong exporters about the value of the Pearl River Delta, the ?factory of the world?. About 80 per cent of the imports and exports of this region are handled through Hong Kong. As we extend our economic co-operation beyond the Pearl River Delta to the rest of southern China under the Pan-PRD initiative, we expect many more great opportunities to open up for our exporters.

Any way you approach it, Hong Kong is a leader in trade. By sea, we are the busiest container port in the world, handling 22 million TEUs last year. And we have embarked on a study called Hong Kong Port -- Master Plan 2020 on the long-term development strategy for the port. By air, Hong Kong International Airport is the world?s busiest in terms of international air cargo throughput, and it has been named the Best Airport Worldwide by the International Air Transport Association. By land, the Hong Kong-Shenzhen Western Corridor will provide a much-needed fourth vehicular boundary crossing between Hong Kong and Shenzhen, and the Hong Kong-Zhuhai-Macau bridge will greatly enhance our access to the western part of Guangdong Province and beyond.

External trade has long been the bedrock of Hong Kong?s economy, through good times and bad ? and that will continue. As always, the Hong Kong Exporters? Association plays a crucial role. The Government looks forward to continuing to work closely with you in maintaining an efficient and buoyant export sector for the next 50 years ? and beyond, despite any changes in leadership.

I wish you all a very pleasant evening. Thank you.

Ends/Friday, May 13, 2005

NNNN

News clip (Real Media/Windows Media)