Chief Executive Donald Tsang and Australian Prime Minister John Howard have agreed to augment trade and economic ties between the two jurisdictions.

Mr Tsang held a bilateral meeting with Mr Howard after attending the APEC 2007 Business Summit in Sydney today. They agreed Hong Kong and Australia are important trading partners and should forge closer ties.

Mr Tsang encouraged Australian companies, particularly small and medium enterprises, to explore the Mainland market via Hong Kong. He also updated Mr Howard on Hong Kong's efforts in protecting the environment and exchanged views on how the global community can better cope with climate change.

Mr Tsang will attend the 15th Asia-Pacific Economic Co-operation Economic Leaders' Meeting this weekend. Climate change will be a major topic. Noting the issue is a worldwide challenge requiring concerted efforts from all economies, Mr Tsang said that a global vision and collective determination is needed to develop strategies and implement mitigating measures to avert or ameliorate the adverse impact of climate change.

He and other leaders will discuss a wide range of issues including the prospects for the WTO Doha Round; regional economic integration; "behind-the-border" impediments to trade and structural reform; revitalising APEC's process and institutions; APEC membership and reform; climate change, energy security and clean development; and human security.