The Chief Executive, Mr Tung Chee Hwa, arrived in the German federal capital Bonn early today (Monday, HK time) to start his first official visit to Germany and France.

During the six-day visit Mr Tung will brief political, business and financial market leaders on Hong Kong's development since the Reunification on July 1, 1997.

Accompanying Mr Tung will be the Secretary for Trade and Industry, Miss Denise Yue, and the Special Representative for Hong Kong Economic and Trade Affairs to the European Communities, Mr Andrew Wong.

On the political front, Mr Tung will explain the smooth running of Hong Kong under the 'one country, two systems' principle and the continued support of the Central People's Government for the HKSAR's high degree of autonomy.

Another topic likely to be discussed with political leaders will be travel convenience for HKSAR passport holders, who still require visas to enter Germany and France.

On the financial front, the Chief Executive will reiterate Hong Kong's determination to maintain the linked exchange rate as a pillar of monetary policy.

Mr Tung will explain how Hong Kong's well regulated, financial markets and open economy have helped it weather the financial and stock market storms battering other East Asian economies as well as how the correction in the property market will enhance Hong Kong's international competitiveness.

The impact on Hong Kong and Asia of the European Monetary Union and the introduction of the 'Euro' currency in 1999 are also likely to be touched on.

With business leaders, the Chief Executive will promote Hong Kong's role as the pre-eminent gateway to the massive markets in China and as the major services centre in the East Asian region.

The 1998/99 Budget initiatives to attract more business to Hong Kong, tax breaks for business and measures to increase competitiveness, will also be in focus.

Germany is Hong Kong's 6th largest trading partner, 4th largest market for exports and 7th largest source of imports while France is Hong Kong's 10th largest trading partner, 9th largest market for exports and 12th largest supplier of imports.

Mr Tung will later today (HK time) meet German Chancellor Helmut Kohl; the President of the Federal Parliament (Bundestag) Professor Dr Rita Sussmuth; the Social Democratic Party chairman Mr Oskar Lafontaine and the Christian Social Union chairman and Federal Minister of Finance Dr Theodor Waigel.

Mr Tung will attend a lunch hosted by the German State Minister for Foreign Affairs, Dr Werner Hoyer, meet the Secretary of State of Federal Ministry of Economic Dr Lorenz Schomerus and attend a dinner jointly hosted by the Asia-Pacific Committee Association, the Federation of German Industry, Association of German Chambers of Industry and Commerce and the East Asia Association.

Mr Tung will tomorrow (Tuesday) meet Federal Vice-Chancellor and German Minister of Foreign Affairs Dr Klaus Kinkel and the Free Democratic Party chairman Dr Wolfgang Gerhard.

The Chief Executive will then leave by helicopter for the German financial centre Frankfurt, where he will deliver the keynote address at a Hong Kong Trade Development Council (HKTDC) luncheon; meet European Monetary Institute president Dr Willem Duisenberg and Frankfurt Stock Exchange chief executive officer Dr Werner Siefert; and attend a dinner with Germany's leading bankers.

On Wednesday, Mr Tung flies to Paris where he will meet, among others, French Prime Minister Mr Lionel Jospin and French Senat President, Mr Rene Monory, as well as deliver the keynote address at a HKTDC luncheon.

On Thursday, Mr Tung will have breakfast with Paris Chamber of Commerce members before departing for Lyon, where he will visit a cancer research centre, the Lyon metro rail system and be guest of honour at a lunch hosted by the Mayor of Lyon, Mr Raymond Barre.

On Friday, the Chief Executive will call on French President Mr Jacques Chirac after a morning of meetings with leading bankers and think-tank members.

Mr Tung leaves Paris on Friday night (HK time) and is due back in Hong Kong on Saturday morning.