Movers & shakers: HSBC Holdings Group Chairman Sir John Bond greets visiting Vice Premier Zeng Peiyan at the meeting of international advisers. Chief Executive Tung Chee Hwa looks on.

Visiting Vice-Premier Zeng Peiyan today discussed with the Chief Executive's international advisers the Mainland's latest economic developments, and Hong Kong's growing integration with Guangdong.

Visiting Vice-Minister of the National Development & Reform Commission Zhang Xiaoqiang also gave Mr Tung's advisers an update on the Mainland's economic development policies and strategies.

Chief Executive Tung Chee Hwa and his Council of International Advisers had a broad-ranging and productive exchange of views on the global and regional economic trends affecting Hong Kong's long-term development at its sixth meeting today.

Mr Tung told the advisers that the Hong Kong economy was showing definite signs of recovery and peoples' moods had improved after the signing of the Closer Economic Partnership Arrangement with the Mainland.

"We have twice raised our estimate of the annual growth rate. The economy is now forecast to grow by around 3% in real terms this year," he said.

"These favourable changes reflect the market's high hopes for CEPA and its conviction that the Administration is heading in the right direction."

Mr Tung noted that Hong Kong had recently reached agreements with Guangdong and Shanghai to forge closer links within the framework of CEPA.

"These two agreements are models for the sort of co-operation that leads to win-win development. In each case, we will look for ways to leverage on our respective strengths for the benefit of both parties," he said.

HK's role in PRD recognised

During the meeting, members examined the global economic scene including that of the US, Europe, China and Japan, and the outlook for 2004. China continues to be the world's fastest growing economy.

They acknowledged that the surge in Asia-Pacific's intra-regional exports signified its rising importance in world trade.

They were also of the view that Hong Kong, with the implementation of CEPA and its further economic integration with the Pearl River Delta, would play an increasingly important role in channelling trade between the Mainland and other Asia-Pacific economies.

They endorsed Hong Kong's strategy of economic development. They agreed that Hong Kong should position itself as a regional service centre and continue to harness its competitive advantages while upgrading the value-added in its services.

Financial Secretary Henry Tang gave a presentation on Hong Kong's latest economic performance, the economic recovery after SARS and the opportunities brought about by the signing of CEPA between the Mainland and Hong Kong.

Secretary for Commerce, Industry & Technology John Tsang gave an account of Hong Kong's efforts to forge closer economic ties with the Pearl River Delta, one of the world's fastest growing manufacturing regions.

Secretary for Health, Welfare & Food Dr Yeoh Eng-kiong explained how Hong Kong had successfully overcome the SARS outbreak. He also briefed the advisers on measures taken to prepare the community for a possible resurgence.

The international advisers joining the meeting were:

* Siemens AG Supervisory Board Chairman Dr Karl-Hermann Baumann;

* HSBC Holdings Group Chairman Sir John Bond; 

* Power Corporation of Canada President and Co-Chief Executive Officer Andre Desmarais;

* American International Group Chairman and CEO Maurice Greenberg;

* Royal Dutch/Shell Group of Companies Group Managing Director Rob Routs;

* Bank of Tokyo-Mitsubishi Limited Senior Adviser Tasuku Takagaki; and

* former US Federal Reserve Bank Chairman Paul Volcker.

Mr Tung welcomed Sir John Bond and Rob Routs for joining the council meeting for the first time. The council was established in 1998 to advise the Chief Executive from an international perspective on strategic issues pertinent to the long-term development of Hong Kong.