The Chief Executive, Mr Tung Chee Hwa, has urged German business chiefs and top-flight bankers to continue to seek greater investment and business opportunities in Hong Kong.

Mr Tung reassured the German audience that Hong Kong's linked exchange rate system was here to stay and that a competitive devaluation was not a consideration for Hong Kong.

In Frankfurt early today (Wednesday, Hong Kong time), Mr Tung met European Monetary Institute (EMI)president Dr William Duisenberg and Frankfurt Stock Exchange chief executive officer Dr Werner Seifert before attending a dinner with Germany's top bankers.

Dr Duisenberg briefed Mr Tung on the latest developments of the Euro and European Monetary Union. Mr Tung congratulated the EMI for making such a remarkable and historic achievement which would greatly facilitate trade and enhance price stability within the Union.

During his meeting with the Frankfurt Stock Exchange's Dr Seifert, the Chief Executive said he was impressed with a visionary presentation on the development of the Exchange as a common capital market for the EU after the introduction of the Euro.

Dr Seifert also highlighted the possibility of Hong Kong becoming the Asian partner in such development.

During his dinner meeting with leading bankers Mr Tung took the opportunity to highlight the unique position of Hong Kong against other Asian economies.

He briefed his hosts on the latest economic situation in Hong Kong and China and encouraged them to participate in developments in the area.

Earlier yesterday (Tuesday, HK time) Mr Tung delivered the keynote address at a Hong Kong Trade Development Council (HKTDC) luncheon in Frankfurt.

Mr Tung urged more than 300 guests, mainly from the business sector, not to lose faith in Hong Kong's economic strength during the current economic downturn in some Asian economies.

He said Hong Kong's dollar link to the US Dollar was a 'pillar of strength' in the region and that Hong Kong's externally-orientated economy needed the stability of a fixed exchanged rate.

He also pointed out that such stability was what business needed during such volatile times in the markets.

Meanwhile, Mr Tung told reporters that one of his most important tasks in Germany and France was to push for 'total, full visa-free access' for HKSAR Passport holders.

Mr Tung said that German Chancellor Helmut Kohl and Foreign Minister, Dr Klaus Kinkel, had agreed to follow up Hong Kong's request during his meetings with them.

Dr Kinkel was sympathetic to Hong Kong's case and promised to take a further look at the visa requirement.

Mr Tung said Hong Kong people, in particular the business community, placed a great deal of importance on travel convenience.

He told a press conference that his ultimate goal was to achieve 'total, full visa-free access over the whole European Union'.

"I think this is important to enhance further the Hong Kong and European Union relationship," he said. "We have actually, as in my last visit to Europe, made this a very important issue.

"It is a complicated issue. It is an issue which will take time. But we are working on it very steadfastly hoping to gain more and more sympathetic audiences and I feel there is a good chance that we will eventually be successful."

In Bonn earlier yesterday, before catching a helicopter to Frankfurt, Mr Tung met with Federal Vice-Chancellor and Foreign Minister Dr Klaus Kinkel as well as Free Democratic Party chairman Dr Wolfgang Gerhard.

Mr Tung said he had been 'deeply touched by the warmth of the reception here in Germany' and grateful to the German government for its hospitality. "It's been a very important and useful visit for us," he said.

"We shared a common commitment to a solid Hong Kong-German partnership and discussed the abundant opportunities available for German business in Asia , especially in Hong Kong and China, despite the current financial turmoil.

"We all agreed it is very important for us to enhance this partnership we have."

This afternoon (Wednesday, HK time) Mr Tung flies to Paris for the second leg of his two-country visit.

He is scheduled to 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.

Photo : The Chief Executive, Mr Tung Chee Hwa, delivering a keynote address at a Hong Kong Trade Development Council luncheon in Frankfurt yesterday (Tuesday, HK time).