Chief Executive's
transcript at the Hong Kong General Chamber of Commerce luncheon
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The following is the transcript of the question and answer
session (English only) given by the Chief Executive, Mr Tung Chee Hwa, after delivering
speech at the Hong Kong General Chamber of Commerce luncheon today (February 22):
Question: We are just wondering why Hong Kong has not
embraced the policy of an open sky policy at one time or another and while we have seen
other countries in the neighbourhood who have embraced that policy have shown signs of
success?
Mr Tung: In my Policy Address two years ago, in line with
our thought of a gradual opening we have in fact announced, as a first step, to have an
open sky policy vis-a-vis air cargo. I must say that the negotiations of what I can see
sometimes are slower than what I would like to see. In the last year the Hong Kong Airport
handled over 2 million tons of air cargo, one of the largest in the world. So things are
happening. But some of the progress being made is slower than I expected and very often,
not because of Hong Kong. And if you have time, I will tell you separately how difficult
they become.
Question: Mr Tung, a few days ago we saw a report in the
newspaper talking about the quality of students graduated from our universities applying
for jobs in the financial services industry. The overall summary from that report was,
according to this evaluation committee, most of our students do not qualify for the
requirements in the financial services industry. And after that report was released,
interestingly I have personally not seen a single response or comment from any of our
people in the academic community. Now, would you like to comment on that and is that
really a correct statement from the report?
Mr Tung: It is difficult for me to comment specifically
about the financial sector, probably it is best to leave it to the likes of HSBC and
others to comment. But I do want to say this, that yes, there are a lot of criticisms
about our education system. We are embarking on a huge education reform programme, at the
end of which I hope we will be much better. We need to be really equipped for the
knowledge economy, and we need to make sure our people are much better educated so they
can fully participate in the knowledge economy and also benefit from the knowledge economy
personally. But I do not want you to belittle our education system either. Three of the
universities here are ranked among the best in Asia. And you can go through all sorts of
league tables and you will find Hong Kong U, Chinese U, and Hong Kong UST amongst the best
in Asia.
I don't know whether you noticed, two weeks ago, I think it
was in the newspaper, about the position of Hong Kong UST's Business School. It is ranked
amongst the top 50, one of the top 50 around the world. I think it's ranked 20 or 25 or
whatever it was. So let's not sell short what we have. But there is a lot of work that
needs to be done and I can assure you we are committed to do this work.
Question: You talked in your speech about integration of
the Pearl River Delta area. As I am sure you are aware, there was an announcement
yesterday of visa-free access by foreign passport holders to the Pearl River area. Closer
examination of that news, however, reveals that it will be restricted for foreign passport
holders to travel within groups. Rumours are rife, however, - indeed even within the walls
of this chamber - that the Guangdong Provincial Government has already agreed to direct
access and free travel for Hong Kong Permanent Identity Card holders. Would you care to
comment whether it is in fact the case, the rumour being that we are still just waiting
for this to be approved by Beijing? And even if that is not the case, would you care to
comment on the desirability of such a policy in view of your comment of the Government
being the great facilitator?
Mr Tung: I think it would be wrong for me to comment on
rumours. But I will say because of the existence of "one country, two systems"
and the importance of maintaining "one country, two systems", we have to give a
great deal of careful thought to any of this process of moving forward. But at the end of
the day, the more liberal, the easier it is for people to travel across the boundary, the
better it would be. I am quite sure of that.
Question: Chief Executive, following on from that last
subject, would you comment on your plans for liberalising and simplifying the arrangements
for IT specialists to come into Hong Kong from the Mainland or elsewhere in the world?
Mr Tung: Over a year ago, we implemented the 'Talents
Scheme' to attract more talents from the Mainland. It has achieved certain purposes but
obviously it has not met the demand of the market. We are actively looking at doing
something in the IT sector, hence in some other sectors, and I would hope that in the not
too distant future there will be an announcement to that effect. It is now being very
actively pursued, I can assure you, because it is important for Hong Kong to get the right
people to be in Hong Kong to help us to expand the economy as we move forward.
Question: Mr Tung, this week an inspection committee of the
International Olympic Committee is in Beijing to check out the facilities there and I saw
in the last few days - probably you have seen it as well - the full page advertisements in
the South China Morning Post, and maybe other newspapers, strongly supporting Beijing's
bid - unless the South China Morning Post was in collusion with you and said: Now we will
put the advertisement, we will do it on behalf of the Hong Kong Government - but I have
not seen this yet. But if it is correct that the Hong Kong SAR - of course you'll support
the Beijing bid - and after losing, unfortunately, last year the Asian Games, could you
confirm to us that if the Hong Kong SAR supports Beijing's bid and they would get it, that
we will have an Olympic-sized stadium in Hong Kong by the year 2008?
Mr Tung: Well, let me say this emphatically. We support
Beijing's bid for the Olympics to be held there in 2008. Actually, the Mayor of Beijing,
Mr Liu Qi was in Hong Kong several months ago and there was a high profile get-together at
which I was with him and categorically stated: We want you to win.
The failed bid of our Asian Games was disappointing on the
one hand, but on the other hand, it has galvanised the community into recognising the
importance of sports. And from that point of view, the Sports Development Board, the
Olympic committees and so on and so forth, are now really looking at how do we promote
sports generally for our 6.8 million people, and that is a very positive result.
There are plans for us to build a stadium on the Kowloon
side - and with some imagination, if the plan goes through, I think it is possible to be
ready by 2008, to answer your specific question. Although if Beijing is successful, the
Olympics will be held in Beijing and not in Hong Kong, but we will try to get it ready.
Question: My question regards the international view of
Hong Kong and the international perception of Hong Kong. The Economist published a study
just a couple of days ago, ranking Hong Kong, in terms of the business environment,
showing a slip from number 3 to out of the top 10. What is your response to this and to
the general question of how the international community sees Hong Kong and what we are
doing about it?
Mr Tung: First of all let me say this, that we will work
very, very hard to ensure Hong Kong's competitiveness, Hong Kong being one of the best in
the world. That I can assure you.
Secondly, look at the figures I recited earlier on: that
the number of multinationals headquartered here has increased by over 20% in one year; the
fact that we received $5.3 Billion of portfolio investment, almost three times higher than
the next country during the year of 2000; and the fact that we had $23 billion of foreign
direct investment - again the second highest in Asia after China. So I would think that
these numbers speak for themselves.
You know, many of you were here before 1997, July 1st, and
I remember one of those very, very famous international magazines carrying an article
called "The Death of Hong Kong". About two years ago they came out with another
article singing praises about Hong Kong. So there you are, they make these assessments and
my job is to prove them wrong all the time.
The EIU's recent study showed us dropping out of the top
10. But you have to understand, the way they are doing it, they are projecting from 2001
to 2005 what might happen in Hong Kong. Well, I hope, with your help we will prove them
wrong, and I have every confidence we will be right. And some of the other things you
might already know, I mean Standard & Poor recently graded us from A to AA and these
are some of the examples. So yes, let this be a reminder a lot of work needs to be done,
and let's keep on working at it. Thank you.
Question: I was pleased to hear that the air quality in
Hong Kong has begun to improve. Could you possibly update us on the cross-boundary efforts
- the progress that we are making in the area of the environment?
Mr Tung: Yes, I will do that. But first of all let me tell
you that the conversion of taxis to LPG is going very well. This year there will be a
decision with regard to the conversion of all the light buses, conversion into LPG or some
other form of energy. In January or early February all the buses in Hong Kong are now
running on ultra low-sulphur diesel. And let me say this again, the only city in Asia
which is using ultra low-sulphur diesel in such a way is here in Hong Kong.
Particular traps are being installed in what's called as
Euro, pre-Euro III, pre-Euro automobiles, trucks and buses and what have you. So all these
things are happening.
But I agree with you that one of the most important issues
we have to tackle is really the cross-boundary pollution and there I would like to tell
you two things. Firstly, in my meeting with the provincial leadership across in Guangzhou,
in December, the determination and the attention and the focus they have placed on
improving the quality of life of citizens across the border, and the importance of
tackling air-pollution, the quality of water, I was really impressed. And I would hope
with that sort of commitment, steps will be taken. Although I hasten to add, for the
quality of air to totally improve it will take some time and as you know I have set the
target that by 2005 the quality of our air will be as good as in New York and London. I
think we are fully on target. All I want to tell you now is that we are making progressive
improvements every year.
And the other point I want to mention is that there is a
study being made in Hong Kong that will highlight where are the sources of air-pollution
in the Pearl River Delta, which includes the source of pollution in Hong Kong. Now this
study should become available in the first quarter of this year, actually within the next
couple of months. When it does become available it will provide a very good basis because
then we will have the knowledge as to how to go about doing all these things. So a lot of
work is now being done, I want to assure you.
End/Thursday, February 22, 2001
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