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The Financial Secretary, Mr Donald Tsang, said today (August 3) that he hopes to forge a new partnership between Hong Kong and the Australian wine industry.

Speaking in the South Australian capital Adelaide, the home of many major Australian wine producers, Mr Tsang said he saw great opportunities for Australian wine producers in Asia, the world's fastest growing wine market.

"We are expecting annual growth in sales of between 10 to 20 per cent," said Mr Tsang during a keynote luncheon speech to business and political leaders attending a seminar on opportunities arising from China's accession to the World Trade Organisation (WTO).

"The value of wine consumed in the region will rise from $A1.5 billion at present to $A3.8 billion by 2006. And China's accession to the WTO will provide even more opportunities because tariffs on wine imports into China will drop from the current level of 65% to 20% by 2004."

Mr Tsang said Hong Kong had a role to play as a wine distribution hub for Asia.

"It makes sense for wine producers in Australia, as well as those from the US, South America and Europe to look for a major distribution hub in Asia," he said.

"With our excellent transport infrastructure, the world's most business-friendly environment, low taxes and an enormous depth of experience in importing and exporting - and of course a great location - Hong Kong is well placed to serve as the world's wine industry partner in Asia. I hope this has given you some food for thought."

During his first official visit to Adelaide, Mr Tsang held meetings with South Australia's Acting Premier Rob Kerin, South Australian Treasurer and Minister for Industry and Trade Robert Lucas and South Australian Governor Sir Eric Neal.

The Financial Secretary was guest of honour at a civic reception hosted by Adelaide Lord Mayor Alfred Huang, a Sichuan native who grew up in Hong Kong and is the first Chinese-born mayor of an Australian city.

The Financial Secretary also visited two South Australian Internet companies, one dealing with e-commerce while the other had developed a software programme to analyse websites.

Mr Tsang opened a Hong Kong Food Festival at a gala dinner which combined the best of Cantonese cuisine and South Australian wines.

"It is certainly my wish that over dinner we can get to know each other a bit better, to enjoy each other's company and to discover what we have to offer each other in areas such as tourism, cuisine and wine promotion," he said at the event organised by the Hong Kong Tourist Association.

"This is the first event of this kind in Adelaide but I hope it signals the start of many more to come."

Tomorrow (August 4), Mr Tsang will hold talks with Australian Foreign Minister Alexander Downer and Federal Minister for Industry, Science and Resources Nick Minchin.

He will attend a breakfast with industry leaders and also visit wine production facilities.

Photo: The Financial Secretary, Mr Donald Tsang, and Mrs Tsang are welcomed to Adelaide for Hong Kong's first official trade mission to South Australia by the South Australian Governor, Sir Eric Neal and Lady Neal.

End/Thursday, August 3, 2000

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