December 12, 2002

Hong Kong General Chamber of Commerce
welcomes four major measures

The Hong Kong General Chamber of Commerce (HKGCC) welcomes the announcement of four major initiatives by the Chief Executive, Mr Tung Chee-hwa, during his duty visit to Beijing, and believes that these measures will bring long-term benefits to Hong Kong¡¦s economic growth.

With regard to the announcement on 24-hour border crossing, HKGCC has long been concerned about the Hong Kong-Guangdong border crossing issue, and stressed the importance of a 24-hour border crossing in a letter to the HKSAR Government, together with four other major business organizations in Hong Kong. In addition, the Chamber, initiated the idea of a "Mainland/China Closer Economic Partnership Arrangement" two years ago, and has been monitoring the progress of negotiations.

Chamber Chairman Christopher Cheng said, "We are delighted to see that 24-hour crossing for people at Huanggang will be implemented and that the Central Government has agreed to conduct a long-term study on the construction of a Mainland/Hong Kong/Macau Bridge. These two major breakthroughs will play a key role in the future development of Hong Kong and Southern China in that they will help strengthen Hong Kong's economic integration with the Pearl River Delta and improve cross-border traffic between Guangdong and Hong Kong. They should also facilitate a smooth flow of people and goods between Hong Kong and the PRD to help achieve the common objective of developing into a strong, coherent economic region."

Mr Cheng added, "Moreover, HKGCC succeeded earlier in lobbying the Central Government to grant three-year multiple visas to Hong Kong permanent residents who are foreign nationals, and for separate counters for foreign passport holders to be set up at the Shenzhen Lowu border crossing point. Such facilities will further attract foreign enterprises to use Hong Kong as a gateway and the PRD as a base to form a bridgehead to enter the China market. Thus, Hong Kong's pivotal status as an international logistics hub will also be enhanced."

CEO of the Chamber, Dr Eden Woon said, "The 'Closer Economic Partnership Arrangement' will create a win-win situation for Hong Kong and China. We hope that 'zero tariff' will be granted under CEPA as it will not only attract manufacturers to stay and invest here, which will fuel the growth of local manufacturing and the entire economy, but it will also help boost domestic employment. If early liberalization can be achieved, Hong Kong enterprises will gain a first-mover advantage. On the other hand, the Mainland can use it as a pilot test to study the impact of free trade and investment on China's economy in preparation for the upcoming full liberalization. Experience gained from CEPA will help China negotiate similar trade agreements with the ASEAN. Through CEPA, Hong Kong can also develop a new economic relationship with ASEAN countries in future.¡¨

Relaxing restrictions on Mainlanders travelling to Hong Kong is also an important measure which will help boost the local economy and tourism industry.

Mr. Cheng concluded, "All the four initiatives are cornerstones that will help drive Hong Kong's economy forward. Hong Kong's economic integration with the Mainland is a trend that must not be neglected. While we are awaiting implementation of these measures, we hope that the SAR Government and the Mainland, especially the Guangdong authorities, can maintain coordination in infrastructure planning to help take Hong Kong's economy to new heights."

Media inquires, please contact Dr Eden Woon, 2823 1211.

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