The Visit to Japan of Chief Executive of the Hong Kong Special Administrative Region (SAR) the Hon. Tung Chee Hwa
(Outline)
27 March 2001
Chief Executive of the Hong Kong Special Administrative Region (SAR) the Hon. Tung Chee Hwa visited Japan from Tuesday 20 to Friday 23 March as Guest of the Ministry of Foreign Affairs. During his stay, Chief Executive Tung paid a courtesy call on Prime Minister Yoshiro Mori and held talks with Minister for Foreign Affairs Yohei Kono, among others. The following is an outline of his visit. This is Chief Executive Tung's second visit to Japan since his last visit in October 1997 immediately following the reversion of Hong Kong to China's sovereignty.
1. Main Schedule
During his visit, Chief Executive Tung paid a courtesy call on Prime Minister Mori and had talks with Foreign Minister Kono, Minister of Economy, Trade and Industry Takeo Hiranuma, and State Minister in Charge of Information and Communication Technology (IT) Taro Aso. In addition, he had an exchange of opinions with relevant parties from the tourist industry, the Federation of Economic Organizations and the Japan-Hong Kong Business Cooperation Committee, and visited the Clean Center and other places in Minatomirai 21, Yokohama.
2. Courtesy Call on Prime Minister Mori (22 March)
(1) The Situation in Hong Kong
Acknowledging that Hong Kong's "one country, two systems" concept had continued to function smoothly, Prime Minister Mori paid his respects to the tremendous efforts made by Chief Executive Tung, commenting that he hoped Hong Kong, under the "one country, two systems" concept, would continue to maintain a free and open system and further promote its sense of trust in the international community.
Chief Executive Tung responded that the "one country, two systems" concept had functioned smoothly for the past three years, demonstrating that it also serves the interests of all those concerned in China. He noted that Hong Kong had extricated itself from the prolonged recession that followed the Asian economic crisis, achieving an economic growth rate of more than 10% last year with a total trade increase in excess of 20%. Chief Executive Tung stated further that the number of tourists visiting Hong Kong was also increasing and in particular that he was delighted there had been an 18% year-on-year growth in the number of tourists from Japan.
(2) Economic Relations
Chief Executive Tung affirmed that Hong Kong and Japan enjoyed long-standing friendly relations, noting that there were currently more than 18,000 Japanese nationals residing in Hong Kong, the number of Japanese affiliated companies had risen to exceed 2,000, that these companies managed more than 3,000 factories in the Zhu Jiang (Pearl River) Delta region, and that Hong Kong would undoubtedly assume further importance as a region to Japanese enterprises following China's accession to the World Trade Organization (WTO).
In response, Prime Minister Mori stated that relations between Japan and Hong Kong in the areas of trade and investment had thus far been favorable, and hoped they would progress further as a result of Chief Executive Tung's visit to Japan on this occasion.
(3) Cultural and Student Exchange
Chief Executive Tung avowed that he would like both parties to make efforts in the areas of cultural and student exchange, and that he personally intended to actively promote these areas upon his return to Hong Kong, remarking that he would appreciate further cooperation from the Government of Japan and Japanese enterprises, too.
Prime Minister Mori replied that he would be delighted to convey Chief Executive Tung's message to the relevant parties.
3. Meeting with Foreign Minister Kono (21 March)
(1) The Situation in Hong Kong
Foreign Minister Kono stated he was delighted to learn that Hong Kong's economy was stable, commenting that such an outcome proved Chief Executive Tung's capability, and that he had heard there was growing support lately for Chief Executive Tung.
Chief Executive Tung commented in response that in 2000 Hong Kong had achieved an annual economic growth rate in excess of 10%. He added that maintaining high support would be difficult and that the approval rating had been fluctuating constantly as evaluations by the press were harsh.
(2) The Hong Kong Economy (Real Estate Market Conditions)
Responding to a question asked by Foreign Minister Kono concerning the depreciation of Hong Kong's real estate prices, Chief Executive Tung noted that office and housing prices had both fallen 50% relative to their peak. Chief Executive Tung commented that while the housing market was in transition, with former prices having fallen by more than 50%, office prices had risen by more than 20% due to the advancement of foreign companies and information technology (IT) related businesses aiming to penetrate the Chinese mainland, mindful of China's accession to the WTO. He added that in addition to the rise in prices, the rate at which office space is vacated had also fallen below 10%, and commented that the housing real estate market was in a slump, which was negatively impacting on Hong Kong's economy.
(3) Japanese-Affiliated Companies in Hong Kong
Regarding the issue of the withdrawal of Japanese-affiliated companies from Hong Kong, Chief Executive Tung remarked that among Japanese financial institutions, those that remained in Hong Kong continued to expand their financing activities. He further noted the number of Japanese-affiliated companies had risen above 2,000, that there were more than 18,000 Japanese nationals residing in Hong Kong, and that these Japanese businesses managed more than 3,000 factories in the Zhu Jiang (Pearl River) Delta region, which had a significant impact on the Hong Kong economy. Chief Executive Tung stated that the presence of Japanese businesses in Hong Kong represents one of the most important elements for its business, commerce and local community.
(4) Exemption of Visas for Hong Kong SAR Passports Holders
In response to a request from Chief Executive Tung to exempt visas for Hong Kong SAR passport holders, Foreign Minister Kono said that this would be difficult on account of various issues, but that he would like to consider what Japan could do on the premise that promotion of mutual humanitarian exchange between Japan and Hong Kong was important.
(5) The World Trade Organization (WTO) and Free Trade Agreement (FTA)
Foreign Minister Kono broached the topic that negotiations were underway on the Japan-Singapore Economic Agreement for a New Age Partnership, to which Chief Executive Tung replied that Hong Kong had reopened preparatory consultations with New Zealand. Furthermore, in light of the importance of the new WTO round, it was decided that both Japan and Hong Kong would have a close exchange of views regarding its launch.
4. Luncheon Hosted by the Hong Kong Economic and Trade Office in Tokyo (22 March)
The following is an outline of the speech made by Chief Executive Tung at the luncheon attended by approximately 500 people:
(1) Management of "One Country, Two Systems"
With the firm support of the Central Government of China, the commitment of the Hong Kong people and so on, we have turned the concept of "one country, two systems" into an everyday reality. The rule of law, the civic freedoms, the market economy, and a high degree of autonomy are guaranteed, which will remain secure in the future, too.
(2) Extrication from the Impact of the Asian Financial Crisis
With the fiscal measures which the Government of Hong Kong introduced, we have emerged from crisis. The economy grew by 10.5% last year. We expect the economy to grow at 4% this year.
(3) Future Modalities of Hong Kong
Hong Kong will develop as a center for the IT industry and tourism, as well as a conventional center for finance and trade. In particular, in order to develop the IT industry, legislative measures will be taken for the protection of intellectual property rights, and the public will be enlightened on the protection of these rights.
(4) Economic Relations with China
China awaits such business opportunities as its accession to the WTO and the development of the western region; the development of the Chinese economy is crucial to the global economy. Owing to its business know-how and expertise in China, Hong Kong has the potential to become a mainstay business partner for foreign companies.
(5) Enhancing Economic Relations with Japan
Hong Kong and Japan enjoy friendly relations and a partnership at the individual level in addition to their economic relations. The majority of small to medium-sized Japanese companies will be able to achieve success in China by establishing valuable partnerships in Hong Kong.
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