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Following is a transcript of the remarks (English portion) by the Chief Executive, Mr Donald Tsang, to the media on the conclusion of the 2nd Pan-PRD Regional Co-operation and Development Forum in Chengdu today (July 26):

Reporter: Mr Tsang, can I ask you a question about "9+2"? There are some mainland scholars think that this group ("9+2") is too loose that there is a need for one partner or two partners to play the dragon head's role. I know this is a very sensitive question but this is how they feel. They feel that somebody should take the lead to set a policy direction and to follow up on activities. Perhaps the Secretary can do that but he has to be empowered, so I want to ask ....

Chief Executive:  This is a very conventional thinking. But what we have is a group of 11 authorities representing different interests and each one of us has our own strengths. What we need to do is to ensure that we are able to deliver what we believe is the best we can offer in this coalition, so that it will encourage multilateral development, particularly regional development on one hand, and benefit our own economy on the other. So in Hong Kong's case, we do believe in the area of finance, in the area of logistics, in the area of professional services, Hong Kong is a natural leader. For that reason we are going to advocate certain policy directions, we are going to take certain initiatives which I explained just now. We are leading a delegation to Fujian to promote financial services and we are going to follow it up with another forum to be held in Hong Kong in March next year.

We are going to do the same thing as regards logistics development, as well as professional services. I am sure other provinces will have other strengths. In the case of Guangdong, they will wish to promote, I am sure, manufacturing capability. In the case of Hunan, they will wish to promote agricultural services. These are all individual strengths. I think it is too broad brushed to say there should be one leader and going to lead everything in this movement, and there will be a lot of different takes and there will be a lot of collective efforts.

(Please also refer to Chinese portion of the transcript)

Ends/Tuesday, July 26, 2005

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