In session: Chief Executive Tung Chee Hwa joins at the first session of the APEC Annual Economic Leaders Meeting in Bangkok.

Chief Executive Tung Chee Hwa today led discussions among APEC economic leaders on ways to boost the Asia-Pacific region's business environment.

The discussions centred on APEC Business Advisory Council recommendations tabled during the first session of the Annual Economic Leaders Meeting in Bangkok.

Mr Tung later joined other leaders for dialogue on this year's recommendations under the theme Harmony in Diversity: Achieving Balanced & Equitable Growth.

The council this year made five key recommendations to address uncertainties in the global economic outlook and to promote increased business confidence.

The recommendations are:

* to reaffirm APEC's commitments to the Bogor Goals (of free and open trade by 2010 for advanced APEC economies and by 2020 for developing economies) and to take a leading role in advancing the Doha Development Agenda under the World Trade Organisation;

* to deal with terrorism and threats to public health while ensuring that normal commerce is not hindered;

* to ensure tangible progress is made in capacity building [APEC initiatives and goals designed to promote free and open trade];

* to continue to work with the private sector to facilitate good corporate governance and transparency at the international, regional and domestic levels; and,

* to ensure APEC and its work remains accessible to business input and participation.

Mr Tung welcomed the council's recommendations and pledged Hong Kong's support for furthering co-operation between APEC member economies and the business sector.

He said while governments can provide sound macroeconomic policies and institutional infrastructure, it is the private sector that will bring about economic growth.

Earlier in the day, Mr Tung had breakfast with President Hu Jintao and held bilateral meetings with the Thai Prime Minister Thaksin Shinawatra and Singaporean Prime Minister Goh Chok Tong.

A common area of interest during the bilateral meetings was the free trade agreements being concluded or negotiated among APEC members and other economies.

Another area of interest was the Closer Economic Partnership Arrangement between Hong Kong and the Mainland.

The Chief Executive said that while CEPA will provide improved access for Hong Kong products and services in the Mainland, it will also provide Mainland companies with better access to Hong Kong and global markets.

During the breakfast meeting with President Hu, Mr Tung briefed him on the latest situation in Hong Kong.

When meeting Mr Goh, Mr Tung highlighted the significant potential of the Pearl River Delta, particularly in regard to new opportunities arising from CEPA.

They also discussed various measures taken by both Hong Kong and Singapore since the SARS outbreak and plans to prevent similar occurrences of infectious disease.

The development of the second phase of the Asian Bond Fund was discussed during Mr Tung's meeting with Mr Thaksin.

The HK Monetary Authority played an active role in helping the Executives' Meeting of the East Asia-Pacific Central Banks establish the US dollar denominated fund launched in June this year to help channel a small portion of official currency reserves back into the region.

The US$1 billion fund invests in a basket of US dollar denominated bonds of Asian sovereign and quasi-sovereign issuers, providing Asian central banks with a useful means to diversify their investments beyond the more traditional reserve assets and to promote market development.

Mr Tung said Hong Kong supported work on the fund because it will help develop the Asian bond market.

Tonight Mr Tung and his wife will attend the Leaders' Gala Dinner and cultural performance.