If the Rule of Law is one of the foundation stones of Hong Kong's success, then legal education is the cement that ensures it stays firmly in place. Last year's work of the Steering Committee on the Review of Legal Education and Training in Hong Kong and the report of its consultants on the issue were therefore vitally important.

In this context, it is hardly surprising that the SAR Chief Justice, The Hon Andrew Li, made some remarks on it in his formal address to mark the opening of the 2002 legal year on January 14, this year. He noted that the consultants' report on the issue had "the beneficial effect of focusing discussion and stimulating change," that there is "widespread concern about the quality of entrants to the profession" and that this "problem must be urgently addressed."

The Chief Justice added: "In my view, the most effective way forward is to concentrate immediately on the Postgraduate Certificate in Laws course (PCLL). I understand that the universities are in the course of establishing academic boards with 40 per cent representation from the profession, which will be responsible for the PCLL course; its entry and exit standards as well as its curriculum. This should be welcomed."

Members should know that the Chamber played an active role in last year's consultation on the future of legal education in Hong Kong. Before the consultants produced their report, the Chamber's Legal Committee discussed the issues and the committee's chairman met with the consultants to inform them of the Chamber's views.

Subsequent to the release of the consultants' report, I wrote, on behalf of the Chamber, to the Steering Committee on the Review of Legal Education and Training to again put forward the Chamber's views and to comment on the contents of report itself. Of real concern was the consultants' suggestion that abolition of the PCLL might be considered.

Like the Chief Justice, our view was this was a step too far and the changes proposed by the universities for PCLL reform -- and referred to by the Chief Justice in his address on the opening of the legal year -- should be given a chance. As I said in my letter to the Steering Committee, "we are fundamentally opposed to its abolition as proposed in the consultants' report."

Among other issues, I also touched on the role of the legal education system in not just providing practising legal professionals, but also a pool of talented people from which executives and directors could be drawn for the wider business community. As I said: "A sound legal education not only produces skilled people for the profession itself, but well-trained people who can turn their skills to business and wider community activities."

As a strong supporter, indeed initiator, of the proposal to negotiate a regional trade agreement (RTA) with the Mainland, the Chamber was encouraged by the outcome of the first meetings on the issue. These were held between the SAR Financial Secretary Antony Leung, and the Vice Minister of the Ministry of Foreign Trade and Economic Co-operation (MOFTEC) An Min, in Beijing on January 25.

While the initial meetings could not be expected to come up with too much in terms of detail, they did make real progress. There was agreement on the preliminary concept and principles were established on the mode of operation and channel for discussions. There was even a formal name, the "Mainland/HK Closer Economic Partnership Arrangement," or CEPA.

The Chamber was especially pleased that it was agreed the arrangement will cover the trading of commodities and services, as well as trade and investment facilitation, and that expert groups are to be set up to take the issue further on both sides of the border. The Chamber continues to believe that the services sector in Hong Kong stands to gain the most from such an arrangement, especially if early liberalisation is included.

Both sides agreed that the principles of discussions should ensure that the relevant WTO rules and the "One country, Two systems" principle should be observed and that the CEPA should be mutually beneficial, and take into account the trends of economic development in the two places.

It was also agreed that the consultations should be progressive, starting with the less difficult areas and that the political, business and academic communities of the two places would be widely consulted in the process. The Chamber looks forward to further timely progress being made in putting an agreement in place as soon as is practicable.