Hong Kong Secretary for Constitutional and Mainland Affairs Stephen Lam (second from right) shakes hands with Deputy Minister of the Mainland Affairs Council Fu Don-cheng before a June 5 working meeting in Taipei.

Hong Kong Secretary for Constitutional and Mainland Affairs Stephen Lam and Deputy Minister of the Taiwan-based Mainland Affairs Council (MAC) Fu Don-cheng agreed to enhance economic cooperation during a June 5 working meeting in Taipei.

The following major points were announced after the meeting:

Over the years, Hong Kong and Taiwan have established very close economic relations. Taiwan is Hong Kong’s fourth-largest trading partner in Asia. Since 1997, bilateral trade between Hong Kong and Taiwan has continued to increase. The flow of people between the two places is significant, with more than 2 million Taiwanese visitors coming to Hong Kong for business or leisure annually. All these factors demonstrate the very close ties between Hong Kong and Taiwan.

Consequently, each side agreed to set up a new non-governmental body. This will be a new platform for fostering further exchanges and enhancing cooperation in trade and economic spheres, among others. Both sides also reached consensus on the principles relating to the new organization. Hong Kong warmly welcomes this development.

Both sides will take the matter forward in three directions.

First, Taiwan will establish the Taiwan-Hong Kong Economic and Cultural Cooperation Council. Hong Kong will set up the Hong Kong-Taiwan Business Cooperation Committee (BCC) under the Trade Development Council, with representatives from Hong Kong’s commercial sector as members. The BCC will collaborate with the Economic Cooperation Committee, which will be established under the Taiwan-Hong Kong Economic and Cultural Co-operation Council on issues of mutual interest, such as trade, investment, tourism and other areas.

Second, bilateral cooperation committees soon will be established and will hold their first meetings in the near future.

Third, in addition to promoting non-governmental interaction, senior officials of both governments will proactively participate in the activities of the bilateral cooperation committees. Senior officials of the Hong Kong Special Administrative Region Government (HKSARG) will form a board of advisers to support the work of the BCC.

Officials on both sides will be able to make use of this platform to communicate and exchange views on matters of mutual interest and to explore and discuss issues for further cooperation between Hong Kong and Taiwan.

It is expected that the HKSARG officials will discuss with their Taiwan counterparts establishing concrete working relationships and building a stronger foundation for solid cooperation.

Hong Kong and Taiwan authorities are actively promoting establishment of the new bilateral cooperation committees. The chairman and members, as well as activities to be conducted by the respective committees, will be announced in due course.

 Mr. Lam was in Taipei June 5-6. In addition to the cooperation meeting, he also made a courtesy call to Taipei Deputy Mayor Ching-Ji Wu.