Productive tour: Chief Executive Donald Tsang (left)visits a metalware factory in Feng Gang Town, Dongguan.

Chief Executive Donald Tsang has proposed measures to help Hong Kong enterprises on the Mainland weather the financial crisis.

Speaking to reporters upon his return from Dongguan this evening Mr Tsang said he asked Mainland authorities to consider easing the requirements of certain policies, such as export tax rebate, transfer and transformation of processing trade, and the Customs Deposit Guarantee.

Mr Tsang said Hong Kong enterprises worry that in complying with the Labour Contract Law labour costs will surge, flexibility in managing human resources will be undermined and labour disputes will arise.

He hopes Mainland authorities can introduce relief measures to address the issue.

Mr Tsang also looked forward to measures to facilitate Hong Kong businessmen, manufacturing on the Mainland for export, in selling their products in Mainland markets.

He also called on Mainland banks to relax credit facilities for Hong Kong businessmen.

Encouraging development

"We are glad to learn the Dongguan Municipal Government announced yesterday some measures which would help local enterprises including those owned by Hong Kong operators, Mr Tsang said. "We will continue to pursue these proposals with the provincial authorities and the Central Government."

During his visit to Dongguan today Mr Tsang met 20 representatives of Hong Kong enterprises operating in the Pearl River Delta to learn more about their plight amid the current financial crisis.

This morning Mr Tsang also had a working breakfast with leaders of the five main local chambers of commerce in Hong Kong to listen to their views.