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The Government would continue to play an active role in fostering Pan-Pearl River Delta (Pan-PRD) regional co-operation and enhancing economic development in Hong Kong, the Chief Executive, Mr Donald Tsang, said at the second Pan-PRD Regional Co-operation and Development Forum in Chengdu, Sichuan, today (July 25).

Mr Tsang said this would be achieved through seizing the opportunities brought by rapid economic growth in the region, with a view to implementing Hong Kong's key development strategy of "leveraging on the Mainland, engaging ourselves globally".

In his address, entitled "Promote the Opening-up, Strengthen Co-operation", Mr Tsang highlighted Hong Kong's three major roles in fostering regional co-operation - assisting enterprises in the region to raise capital; providing diversified support services for various kinds of business activities in the region; and encouraging enterprises in the region to make Hong Kong their base for exploring the international market.

Mr Tsang also attended a joint conference this afternoon to discuss future plans and work priorities regarding regional co-operation with the leaders of governments of nine provinces/regions and Macao.

He said the goals agreed upon at the forum would not only impact greatly on regional economic growth, but would also be important in reinforcing and strengthening Hong Kong's status as Asia's world city and a regional trading hub. Those foci include stepping up infrastructure development, promoting the opening-up of the market, advancing the implementation of the Mainland/Hong Kong Closer Economic Partnership Arrangement (CEPA), and striving to increase direct flights within the region. Mr Tsang said Hong Kong would spare no effort in these pursuits.

"One of the key driving forces underpinning Pan-PRD regional co-operation is the development of the transportation network," he said. "Hong Kong is an important platform for the Mainland economy to access the international market. We support the construction of a comprehensive network of express railways, highways, waterways and air routes. Hong Kong is vigorously strengthening its transportation links with the Pearl River Delta region and stepping up efforts on major infrastructure works such as the Hong Kong-Shenzhen Western Corridor, the Hong Kong-Zhuhai-Macao Bridge and the Guangzhou-Shenzhen-Hong Kong Express Rail Link. Hong Kong will also actively collaborate on transportation planning and development in the Pan-PRD region. Efforts on this front could help fully exploit our role in the economic cooperation within the Pan-PRD region through bridging the Mainland and global market," Mr Tsang said.

He also welcomed efforts by the Pan-PRD region to advance the implementation of CEPA. He pointed out that the objectives of CEPA were to strengthen trade and investment co-operation between the Mainland and Hong Kong, further the opening-up of the market, remove trade and investment hurdles, progressively improve market access and realise trade liberalisation. These goals were also in tandem with those embraced by the Pan-PRD regional co-operation. He said the successful implementation of CEPA required a strong commitment on the part of regional authorities. The HKSAR Government supported accelerating the implementation of CEPA in the region and leveraging on the opportunities arising from Pan-PRD regional co-operation, in particular the preferential access given to eligible service sectors under the arrangement. It would enable the service suppliers in Hong Kong and Macao to gain access to the Pan-PRD region quicker, provide quality services and better promote regional development. Indeed, the implementation of CEPA will be beneficial to both sides and bring positive impact and handsome gains to the economies of the Mainland and Hong Kong. It is estimated that in the first two years of the implementation of CEPA, about 29,000 jobs will have been created for Hong Kong people, and as driven by CEPA I, investment in the Mainland by Hong Kong companies in 2004 and 2005 will amount to $6.7 billion.

Regional co-operation was a long-term task, Mr Tsang said. The Government will follow up on the success of this forum and strive to explore co-operation opportunities. The Secretary for Financial Services and the Treasury will head a delegation to Fujian Province in September with a view to enhancing understanding on investment opportunities in Fujian among Hong Kong investors, especially venture capitalists, investment bankers and entrepreneurs. The delegation will also introduce to the Fujian Provincial Government and businesses Hong Kong's advantages as an international financial centre, with a view to encouraging better use of Hong Kong as a fund-raising platform.

Mr Tsang also announced that the Government planned to host a Pan-PRD Regional Co-operation Financial Services Forum in March next year to explore further opportunities in financial services collaboration in the Pan-PRD region. The forum, with the theme, "Hong Kong as the Prime Capital Formation and Global Investment Platform for the Mainland", will invite the participation of relevant CPG leaders, leaders of Pan-PRD provincial/regional governments, and representatives from enterprises in the region. The forum will serve to enhance their understanding of various financial services provided by Hong Kong, and to encourage the use of fund-raising and investment services in Hong Kong, with a view to accessing the international market.

Mr Tsang said that apart from exploring co-operation opportunities, the Government would also take an active part in various aspects of regional co-operation. Pan-PRD provinces/region have collaborated in the past six months, in the compilation of studies on five special sector co-operation plans, focusing respectively on transportation, energy, environmental protection, informatisation, and innovation and technology. Plans on future Pan-PRD co-operation goals and major tasks have been formulated through reviewing the region in a comprehensive manner, and analysing data in key factors including population, resources, environment and economic growth in the region.

The Second Pan-PRD Regional Co-operation and Development Forum is running from today to July 28. Led by the Chief Executive, the 26-strong HKSAR Government delegation comprises the Secretary for Constitutional Affairs, Mr Stephen Lam; the Secretary for Financial Services and the Treasury, Mr Frederick Ma; the Secretary for Commerce, Industry and Technology, Mr John Tsang, and a number of other senior government officials.

The HKSAR Government will also take part in a number of related events. Four delegations will participate in the Second Pan-PRD Regional Economic and Trade Co-operation Fair, Forum on the Development of Pan-PRD Capital Markets, Pan-PRD Modern Logistics Development Forum and Pan-PRD Intellectual Property Co-operation Forum. The delegations comprise representatives from the business, financial and logistics sectors, and are led respectively by the Secretary for Commerce, Industry and Technology, Mr John Tsang; the Secretary for Financial Services and the Treasury, Mr Frederick Ma; Permanent Secretary for Economic Development and Labour, Ms Sandra Lee; and the Director of Intellectual Property, Mr Stephen Selby. The Trade Fair and three forums serve as platforms for the HKSAR Government and representatives from various sectors to exchange views and explore co-operation with their counterparts in the Pan-PRD region. The Intellectual Property Department of the HKSAR Government will sign the Pan-PRD Intellectual Property Co-operation Agreement with nine Pan-PRD provinces and Macao to promote collaboration in the area of intellectual property protection. In total, more than 150 representatives from the HKSAR are taking part in the Second Pan-PRD Regional Co-operation and Development Forum and related activities.

The "9+2" governments hosted the first forum in Hong Kong, Guangdong and Macao in June, 2004, during which the Pan-PRD Regional Co-operation Framework Agreement was signed. Since then, significant progress has been achieved in a number of areas. Apart from organising the first forum, Hong Kong has also taken practical steps to explore new co-operation opportunities and capitalise on its unique advantages in the region, such as promoting the implementation of CEPA, forging ahead with plans for major infrastructure projects, such as the Hong Kong-Zhuhai-Macao Bridge, and undertaking mutual visits and research projects.

The Pan-PRD region, also known as "9+2", involves nine provinces/region including Fujian, Jiangxi, Hunan, Guangdong, Guangxi, Hainan, Sichuan, Guizhou and Yunnan, as well as the Hong Kong and Macao Special Administrative Regions.

Ends/Monday, July 25, 2005

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