20 October Hong Kong-European Commission meeting

Date: 23/10/1997

HONG KONG Chief Executive Tung Chee Hwa claimed talks with Trade Commissioner Sir Leon Brittan and Commission President Jacques Santer “cleared the way for substantial negotiations on a customs cooperation agreement”. Tung also said he had raised the issue of visa-free entry to the EU, and had received a “quite sympathetic” response. “Hopefully we will be able to convince all the member states that the Hong Kong passport regime is strong and effective; but it will take a long time to work through it,” he added. Tung also appealed to the EU for support for Vietnamese refugees in Hong Kong.

TUNG's assistant Denise Yue later stressed that the customs deal should “underline Hong Kong's status as a separate customs area and demonstrate the 'one country, two systems' concept to the fullest”.

CHINESE entry into the World Trade Organisation was also discussed. “We all expressed a wish that China should join as soon as possible,” said Tung. But the issue of human rights in the country was ignored. Answering a journalist's questions about China's regime, and on whether Hong Kong would follow Beijing's example, Tung simply asserted that democracy was “very much alive” in Hong Kong and invited the journalist to go and see the changes in China for himself.

THE advent of the euro was also broached. Tung declared after the meeting that “any major change of this sort” could have a significant impact on Hong Kong, adding: “We want to be sure we are not disadvantaged in any way.” His comments were echoed by Dr Victor Fung, chairman, along with Peter Sutherland, of the inaugural EU-Hong Kong Business Cooperation committees. “We in Hong Kong are just assessing the impact of the euro. As it takes hold, a significant amount of our trade may be conducted in euro,” he said. But Fung added that he did “not expect” member states' decisions on whether to join the euro or not “to have a major impact” on Hong Kong trade decisions.