The mission, jointly organised by the Chamber and the HKTDC, studied technological developments in the region and explored possible business opportunities for Hong Kong companies.

The delegation called on San Diego Mayor Susan Golding, who expressed her support for bilateral business co-operation between San Diego and Hong Kong. Amongst other issues discussed were strategies for tackling the trade deficit and promotion of the San Diego region.

Julie Wright, president and CEO of San Diego Regional Economic Development Corporation, gave a general overview of San Diego's role as a technology centre and a hub for venture capital investment.

During a luncheon with Kathy Ward, president and CEO of the San Diego World Trade Centre, delegates discussed possibilities for enhancing trade links between Hong Kong and San Diego companies.

Delegates then visited Cubic Transportation Systems, Qualcomm, San Diego Tech Centre and Supercomputer Centre to see for themselves state-of-the-art technologies being utilised in San Diego.

Baja California

Delegates also travelled to Tijuana, Baja California, Mexico, to study success stories that have arisen from the North American Free Trade Agreement (NAFTA), particularly in the electronics industry.

They were welcomed by Oscar Arce, under-secretary of Economic Development, Baja California State Government, Miguel Velasco, chairman for Tijuana Economic Development Corporation, and Roberto Gallegos, customs broker for Sanyo Customs Brokerage.

Mr Arce highlighted Baja California's advantages as a strategic location for manufacturers, citing low production costs, its proximity to the U.S. border, and other unique benefits associated with the NAFTA market.

Manuel Celis, vice president, Mexico Operations, Sanyo Manufacturing, and Michael Ho, chairman, Nikkai Electronic Inc., then shared with delegates their experiences in setting up production plants in Mexico.

Over the last decade, the maquiladora industry, also known as twin plants or in-bond operation -- manufacturing plants owned by foreign companies operating in Mexico that are allowed to import and export assembled goods at reduced tariff rates -- has grown exponentially. Hundreds of global companies have been attracted to the region to set up facilities on both sides of the U.S.-Mexico border.

Most plants manufacture televisions, VCRs, computer parts and peripherals, PC circuit boards, and other consumer electronic goods for world markets.

Made up of five municipalities, namely Mexicali, Tijuana, Tecate, Ensenada and Rosarito, Baja California is a thriving industrial and agricultural centre. Some 74 per cent of its 2 million inhabitants are under the age of 35.

Tijuana is best known for its foreign assembly plants; Tecate for its breweries; Ensenada is an important commercial and fishing port; whilst Rosarito is a popular tourist destination.