As verdant countryside whizzed by at 270 kmh, the Chief Executive, Mr Tung Chee Hwa, has taken a first-hand look at some of the French railway technology being used on Hong Kong's new Airport Express.

Mr Tung, guest of honour with the French National Railroads (SNCF), said he was impressed with the TGV (very fast train) services zooming to all corners of France every day.

The Chief Executive boarded the TGV today for the 415-kilometre trip from Paris to France's second city Lyon, where he was the guest of the Mayor of Lyon and former French Prime Minister, Mr Raymond Barre.

During the two-hour trip, the Chief Executive also took a front-row view of the action during a guided tour of the high-tech control room with SNCF Asian Manager for International Development, Mr Francois Bressy.

The TGV in France are jointly developed and built by SNCF, CS Transport Signaling and GEC Alsthom, which is involved in building the new Airport Railway.

SNCF was involved in the signaling systems for Guangzhou-Shenzhen railway, as well as the Beijing-Shanghai railway.

During a briefing on the TGV services, Mr Tung was told how state-of-the art signaling systems ensured safety during such high-speed services.

The costs of developing a TGV service, on-board facilities, technology and the environmental impact of the lines was also discussed.

The TGV has carried more than 300 million passengers in complete safety since commercial services began in 1981, said an SNCF spokesman.

The TGV can run at speeds of up to 320 kmh on commercial services. In May 1990, a TGVA set a world speed record of 515.3 kmh for rail transport.

"It's really something, and very interesting to learn all about it," Mr Tung said of the train.

Later today Mr Tung will take a look at another high-tech French train service - the fully automated Lyon Metro.

Before he left Paris, Mr Tung had breakfast with the Paris Chamber of Commerce and Industry.

During the meeting Mr Tung briefed chamber members of Hong Kong's economic development over the next decade and opportunities in Hong Kong and China for small and medium enterprises (SMEs).

Chamber members were interested to hear Mr Tung's thoughts on how smaller French businesses could compete with multi-nationals to gain a foothold in the massive Chinese market.

"Hong Kong is optimally placed to help French SMEs develop business opportunities in China," Mr Tung said.

"There are many companies in Hong Kong with which French companies can form strategic alliances and partnerships. We have the know-how needed to help them.

"We also have a network of 11 Trade Development Council offices throughout the mainland, who are also well placed to help anyone seeking partnerships for projects in China.

"There will be enormous opportunities for such tripartite relationships as China presses ahead with its reforms of state-owned enterprises."

Mr Tung told chamber members that Hong Kong was always trying to create an attractive environment for investors.

He said that during the meeting, chamber members had also expressed confidence in the future of Hong Kong.