China Likely To Give Hong Kong Economic Assistance

by Mary Swire, Tax-News.com, Hong Kong

30 April 2002

Yesterday was Hong Kong's National Day holiday, marking the 52nd anniversary of the People's Republic of China, and Hong Kong's Chief Executive Tung Chee-hwa spoke of the challenges facing the SAR, saying however he was confident that they could be overcome.

"In the face of the recent rapid deterioration of the external economic environment and the economic restructuring which Hong Kong is undergoing, Hong Kong has to prepare for some new and difficult challenges ahead," said Mr Tung. "The challenges are tough, but we have great strengths: a sound and solid institutional framework, sophisticated and world-class infrastructure. These advantages are not easily replaceable and they give us a strong competitive edge in the global market and in exploring market opportunities on the mainland."

In Beijing, in a parallel speech, Premier Zhu Rongji gave an assurance that the Central Government would continue to support Mr Tung's government, pledging that the mainland would enhance economic exchanges with SARs Hong Kong and Macau to maintain their stability and prosperity. And the deputy director of the State Council's Hong Kong and Macau Affairs Office, Chen Zuoer, promised yesterday at a meeting in Beijing with Hong Kong and Macau union leaders that the mainland government would actively assist the SARs' economic development. Mr Chen said the two SARs and the mainland were one big family and were supposed to help each other.

According to reports in the Beijing press, the Central Government is expected to announce specific measures to assist Hong Kong and Macau within a matter of weeks.

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