The Chief Executive, Mr Tung Chee Hwa, arrived in Tokyo tonight for a two-day visit to forge closer ties with Japan.

During meetings with political and business leaders, Mr Tung will stress the importance of strengthening bilateral relations with Japan, Hong Kong third biggest trading partner and the third-largest external investor in the Special Administrative Region.

Mr Tung will also explain how it has been 'business as usual' in Hong Kong, with a continued commitment to free-market policies, the rule of law, a freely convertible currency and low taxation.

"I hope that through this visit we can the deepen understanding with our Japanese friends on the latest developments in Hong Kong since the Handover on July 1," Mr Tung said.

Tomorrow, Mr Tung will hold a series of high-level meetings with Japan's political leaders including Prime Minister Ryutaro Hashimoto, Minister for Foreign Affairs Mr Keizo Obuchi, Minister of Finance Hiroshi Mitsuzuka and Minister for International Trade and Industry Mitsuo Horiuchi.

Meetings will also be held with the Japan-Hong Kong Business Co-operation Committee and the influential Japan Federation of Economic Organisations (Keidanren).

On Friday, Mr Tung will deliver the keynote address at a luncheon jointly hosted by the Hong Kong Economic and Trade Office, the Hong Kong Trade Development Council, the Hong Kong Tourist Association (HKTA) and the Japan Hong Kong Society.

Meetings will also be held with Japan's tourism industry leaders as well as the Japan Federation of Bankers Associations.

"Hong Kong is a popular destination for Japanese tourists and I very much hope it will continue to be," said Mr Tung.

"I am looking forward to meeting with Japan's tourism industry leaders on Friday and to let them know that Hong Kong is still a great place to visit.

"We attach great importance to promoting the tourism industry and, as I outlined in my Policy Address last week, we will loan $100 million to the Hong Kong Tourist Association to establish an International Events Fund to keep Hong Kong in the world travellers eye."

Also on Friday, Mrs Betty Tung, will be guest of honour at the launch the HKTA's Winter Promotion Campaign in Japan.

The campaign will include a series of promotions and special deals designed to attract more Japanese tourists to Hong Kong.

Mr Tung will return to Hong Kong on Friday night. He leaves on Sunday for his first official visits next week to the European Union headquarters in Brussels and then London.