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Hong Kong is prepared and ready to shoulder its part of the obligation to work with governments around the world in tackling the challenge of the current financial turmoil.
Addressing 90 business and media guests at the "Taste of Hong Kong" event in New York (October 22, New York time), Hong Kong Commissioner for Economic and Trade Affairs, USA, Mr Donald Tong said that as a precautionary measure to reinforce confidence in the banking system at a time of continuing stress in the global financial system, Hong Kong has guaranteed the repayment of all customer deposits held in Authorised Institutions in Hong Kong, and established a Contingent Bank Capital Facility (CBCF) to make available additional capital to locally incorporated licensed banks, on request.
Both measures will remain in force until the end of 2010.
"Our Chief Executive also announced last week in his Policy Address that Hong Kong will do its utmost to ensure that our financial system remains sound and robust," said Mr Tong.
"Attaching importance to this issue, the Chief Executive himself will chair a task force to monitor and assess the impact of the crisis on local and global markets and mete out relevant appropriate measures."
Mr Tong highlighted the fact that Hong Kong and the US have long shared a close relationship.
"This relationship is characterised by co-operation on many fronts, ranging from trade/financial/economic issues to collaboration on public health issues," he said. "The fact that we have three Economic and Trade Offices (ETOs) in the US, namely in Washington, DC, New York and San Francisco, speaks of the importance Hong Kong attaches to our bilateral relationship."
Mr Tong noted that although Hong Kong is a small economy and has only about seven million people, the US is the territory's second largest trading partner with the value of merchandise trade amounting to US$64 billion, making Hong Kong the 15th largest export market for the US.
"We share with the US many of the same attributes and are from time to time put on a par with you in various respects," he said.
"In its January 2008 edition, TIME Magazine coined a new term 'Ny-Lon-Kong', suggesting New York, London and Hong Kong were linked by a common economic culture and are 'exemplars and explanations of globalisation'."
He added that both Hong Kong and the US shared similar core values, including respect for human rights and freedoms; recognition of the importance of the rule of law, underpinned by an independent judiciary; clean and efficient government; free flow of capital, information and people; and a level playing field for all.
"Other than trade, we also work closely with your country on other fronts. We actively participate in the World Health Organisation's epidemic monitoring programme. Hong Kong is now home to a test laboratory for avian flu for the Asia-Pacific Region. In the US, we collaborate with the Center for Disease Control in Atlanta in sharing our experience in preparing for an avian flu outbreak," he added.
Mr Tong said he was gratified to note the progress the ETOs had made in furthering US-Hong Kong ties. He said, "I look forward to working with you more closely. Together we will open new turf and achieve new heights."
Ends/Thursday, October 23, 2008
Issued at HKT 12:10
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