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Speech by FS at Launch of Cathay Pacific Flights to Chicago (English only)
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     Following is the speech by the Financial Secretary, Mr John C Tsang, at the Launch of Cathay Pacific Flights to Chicago in Chicago today (September 26, Chicago time):

John (Slosar), Distinguished Guests, Ladies and Gentlemen,

     Good evening.

     It is my great pleasure to be here in windy city Chicago.

     Chicago is one of the world's greatest destinations for business and leisure travellers from around the globe as well as a leading centre for trade and finance.  Even the names of your celebrated  sports teams have all their bases in the world of business fully covered.  When things are going well you have the Bulls; when things are heading in the other direction you have the Bears.  And for new products and initiatives you have the Cubs.  Very clever, your people in Chicago.

     We are here to witness the birth of a young cub, marking a new initiative in the world of aviation.

     Here, I wish to congratulate Cathay Pacific Airways on its launch of daily non-stop passenger flights between Hong Kong and Chicago.

     This service began on September 1, and I am looking forward to the convenience and delight of a direct flight back to Hong Kong from Chicago tomorrow.  The timing of this launch could hardly be better.

     Hong Kong is well and truly open for business having fully recovered from the recent global economic turmoil.  Hong Kong's economy expanded 7 per cent last year.  Our GDP also grew 6.3 per cent in the first half of this year compared to the same period in 2010.  I don't mean to brag, but our unemployment rate stands currently at 3.2 per cent.

     Over many years, our city has cemented its position as the premier international gateway to Mainland China, now the world's second largest economy, behind the US.

     I know this will be of great interest to people of Chicago given the already strong links between the US business community and their partners in Mainland China.

     As the world's freest economy, Hong Kong offers many unique advantages to entrepreneurs from Chicago doing business in Mainland China.  Not only can we provide all the necessary expertise and facilitations in doing business on the Mainland, we stand also separately and uniquely as the major international financial centre in the Asian time zone.

     You may be aware that we have our own freely convertible currency as well as free flows of capital, information and ideas.  We have a low and simple tax system with salaries tax capped at 15 per cent and profits tax at 16.5 per cent.  We have no capital gains tax, no death duties, no VAT, no GST.  We don't even have any duty on wine in Hong Kong.

     We also go the extra mile to root out corruption and ensure a level playing field for all.

     Around 70 of the world's largest 100 banks operate in our city.  And, we have a broad and deep pool of financial, legal and business talents operating in Hong Kong.

     All these features support Hong Kong's role as an ideal testing ground for new products and ideas as the Mainland opens up to reform and liberalises its markets.  This is particularly the case for the internationalisation of the Mainland currency, the Renminbi.

     Renminbi banking, Renminbi trade settlement and a Renminbi bond market are all relatively new and fast-expanding features of Hong Kong's financial services sector.

     As our city's flag carrier, Cathay Pacific has been an important part of our city's transformation into an international business, financial and tourism hub in Asia.

     I am confident that Cathay's new direct flight service will give an additional lift to trade and investment between us and help to continue the momentum in building even closer ties between our communities.  Fast, convenient and high quality air services underpin Hong Kong's credentials as a globally connected city.

     Hong Kong International Airport is consistently ranked among the world's best and busiest airports for both passengers and air freight.  Last year, the airport handled more than 50 million passengers and 4 million tones of air cargo.  Our aviation network connects to more than 150 destinations around the world, including 40 cities in Mainland China.

     The Hong Kong Special Administrative Region Government is currently exploring options to expand the capacity of our airport.  This includes the possibility of building a third runway to meet expected increase in demand beyond 2020.

     As a relatively small city in the heart of East Asia, high-quality aviation services are essential to our competitiveness in the region.

     Our prime location in the heart of East Asia means that Hong Kong is within five hours flying time from half the world's population.

     Direct passenger flights to and from Chicago will make Hong Kong an even more attractive connecting hub for business travellers and tourists from the US to destinations throughout Asia.

     On the topic of travel, allow me to briefly mention two major cross-boundary infrastructure projects currently under construction.

     The first is an Express Rail Link that will connect Hong Kong to the expansive high-speed rail network in Mainland China.  This project is expected to be commissioned in 2015.  Once completed, it will speed passengers to major Mainland cities in a fraction of the time it currently takes by train.

     Another exciting project is a massive 29-kilometre bridge connecting Hong Kong with the Mainland city of Zhuhai and nearby Macau.

     The Hong Kong-Zhuhai-Macau Bridge is expected to open in around 2016.  It will provide a direct link to the less developed western part of the dynamic Pearl River Delta where we see huge potential for business growth.

     We are also in the planning phase for a rail link between our International Airport and the Shenzhen Airport just across the boundary.  This would complement the development of both places.

     Ladies and Gentlemen, this year marks an important milestone in Hong Kong's aviation development.  It was back in 1911, that the first powered flight took off in our city.

     The launch of new direct flights between Chicago and Hong Kong is a great addition to our Centennial celebrations of aviation development.

     Both our cities have much to gain from closer bilateral ties, not only through the bulls, bears and cubs of the business and financial worlds, but also in tourism, education, arts, culture and even sports.

     Finally, I wish Cathay Pacific every success with its new Chicago service and I look forward to even stronger links between Chicago, "The Windy City" and Hong Kong, Asia's world city.

     Thank you very much.

Ends/Tuesday, September 27, 2011
Issued at HKT 10:51

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