Prague promotion: Czech President Vaclav Klaus greets Chief Secretary Donald Tsang.

Hong Kong and the Czech Republic have agreed to increase bilateral co-operation in culture, education and trade facilitation. Chief Secretary for Administration Donald Tsang says Hong Kong businesses are happy to help Czech enterprises enter the vast Mainland market.

Mr Tsang met with President Vaclav Klaus and other officials yesterday in Prague for bilateral talks.

During their meeting, Mr Tsang updated President Klaus on Hong Kong's economic performance, CEPA, increased economic co-operation with China's nine southern provinces, and last month's Legislative Council elections.

Mr Tsang said he was pleased that CzechInvest, the country's investment promotion agency, has established its Southeast Asian regional office in Hong Kong.

New opportunities

Both governments have agreed to facilitate trade and investment flow between the two places and will start to explore opportunities in negotiating an Investment Protection Agreement and a Double Taxation Agreement.

"Just as Hong Kong is a gateway for Czech companies going to the Mainland, the Czech Republic is a gateway for Hong Kong companies to go to the EU," Mr Tsang said.

Mr Tsang and the Czechs concurred that exploring a direct air link between Hong Kong and Prague will boost mutual tourism and investment.

In the area of criminal justice, Mr Tsang said good progress is being made towards finalising bilateral agreements on the Transfer of Sentenced Persons and on Mutual Legal Assistance. Negotiations on a Surrender of Fugitive Offenders Agreement are expected to begin soon.