Hong Kong Chief Secretary for Administration Henry Tang (right) greets the Vice-Governor of Guangdong Province, Liu Kun. Mr. Tang led a delegation to attend the 15th Working Meeting of the Hong Kong/Guangdong Cooperation Joint Conference on August 3.

Hong Kong Chief Secretary for Administration Henry Tang and the Vice-Governor of Guangdong Province, Liu Kun, co-chaired the 15th Working Meeting of the Hong Kong/Guangdong Cooperation Joint Conference in Hong Kong on August 3.

“The meeting has reviewed the latest work progress of Hong Kong/Guangdong cooperation, particularly the implementation of the Framework Agreement on Hong Kong/Guangdong cooperation,” Mr. Tang said. “We have also discussed the major tasks for the next stage and the initial arrangement for the coming plenary. I look forward to working closely with Vice-Governor Liu to push forward Hong Kong/Guangdong cooperation, benefiting the people of both places.”

To further enhance cooperation between Hong Kong and Guangdong, the meeting discussed the following cooperation areas:

Framework Agreement on
Hong Kong/Guangdong cooperation

Witnessed by state leaders, Hong Kong and Guangdong signed the Framework Agreement on Hong Kong/Guangdong cooperation in Beijing in early April this year. This is the first agenda on Hong Kong/Guangdong cooperation ever endorsed by the State Council. It sets out six long-term development positions for Hong Kong/Guangdong cooperation, including a world-class new economic region, a financial cooperation region, a manufacturing and modern services base, a modern economic circulation sphere, a quality living area and a world-class metropolitan cluster. These positions have provided clear directions for Hong Kong and Guangdong’s future collaboration.

The Framework Agreement is widely supported by the Hong Kong community. In particular, the Legislative Council has discussed in detail the different aspects of the agreement. To facilitate communication with industry, the Hong Kong Special Administrative Region Government (HKSARG) and the Guangdong Provincial Government organized a large-scale forum in Hong Kong in early June to help the industry grasp the opportunities brought about by the Framework Agreement.

Currently, the relevant bureaus and departments of the HKSARG are working closely with their counterparts in mainland China to actively implement the various policies and measures in the Framework Agreement, as well as discussing the directions of the 2011 Work Plan.

In particular, the HKSARG strives to incorporate the relevant policies on Hong Kong/Guangdong cooperation in the Framework Agreement — especially those on the functional positioning of Hong Kong/Guangdong cooperation — into the 12th national Five-Year Plan.

Regional cooperation plan on building a quality living area

Hong Kong, Guangdong and Macao are finalizing the compilation of the first regional cooperation plan on “Building a Quality Living Area.” The plan aims to enhance cooperation among the three sides in the areas of environment and ecology; low-carbon development; spatial planning; personnel exchange; transportation; and culture and social living (including cultural exchange, education, social welfare and food safety).

The three sides will leverage on their respective strengths to maintain and enhance the unique competitiveness of the Greater Pearl River Delta region. This will also help the economy, society and environment to achieve sustainable development. Upon completion of the study report, the three sides will release the findings of the regional cooperation plan as soon as possible.

Regional cooperation plan on infrastructure construction

Since the promulgation of the “Outline of the Plan for the Reform and Development of the Pearl River Delta” by the National Development and Reform Commission in January 2009, the governments of Hong Kong, Guangdong and Macao have worked closely together on a number of cooperation initiatives. One such initiative is the joint compilation of the regional cooperation plan on “Infrastructure Construction,” which aims to guide the provision of various infrastructures for linking up the three places in a reasonable manner, with a view to fostering future development.

The three governments are now actively taking forward the regional cooperation plan on “Infrastructure Construction.” The scope of the study comprises cross-boundary transport facilities (including highways, railways, port and airport), boundary control facilities, electricity supply, water supply, natural gas supply, and cross-boundary information communication and technology infrastructure, etc.

Qianhai development

According to the current consensus, the Shenzhen Municipal Government will take up the leading role and be responsible for the development and management of Qianhai, while the HKSARG will provide comments on the study and formulation of issues such as development planning and policies. In this regard, the HKSARG will continue to liaise closely with the Guangdong Provincial Government and Shenzhen Municipal Government, so as to enhance the competitiveness of Hong Kong service industries and explore the Mainland market through Qianhai. In addition, via the experiences of Hong Kong, Hong Kong aims to assist in speeding up the construction of modern services industries on the Mainland, as well as to bring the successful experience to other regions.

Financial services

In the area of financial services, four Hong Kong banks have been approved by the China Banking Regulatory Commission Guangdong Bureau to set up a total of seven sub-branches in Guangdong, by means of the "cross-location sub-branches" measure under Closer Economic Partnership Arrangement (CEPA) Supplement VI.  In addition, Supplement VII to CEPA, announced in May this year, further relaxed relevant requirements for Hong Kong banks to set up a wholly foreign-funded bank or a foreign bank branch, as well as to apply to conduct renminbi (RMB) business.  

On RMB business, there has been satisfactory development in Hong Kong in recent months. On June 22 this year, the People's Bank of China (PBoC) announced the expansion of the RMB trade settlement scheme. In particular, the coverage of the pilot program in Guangdong has been expanded from four cities to the whole of Guangdong province. This has provided better conditions to further promote RMB trade settlement between Hong Kong and Guangdong.

Further, on July 19, the PBoC signed a Supplementary Memorandum of Cooperation with the Hong Kong Monetary Authority on the expansion of the RMB trade settlement scheme, and a revised Settlement Agreement on the Clearing of RMB Businesses with the Bank of China (Hong Kong) Limited, the RMB clearing bank. Thereafter, there will no longer be restrictions on banks in Hong Kong in establishing RMB accounts for and providing related services to financial institutions, and individuals and corporations will be able to conduct RMB payments and transfers through the banks.

Cross-boundary transportation

The meeting also discussed the various modes of cross-boundary transportation, noting that work on the Hong Kong-Zhuhai-Macao Bridge (HZMB) Main Bridge commenced in mid December 2009. The three governments also jointly signed the Inter-governmental Agreement in late February this year. It specifies the partnership arrangements between the three governments, as well as their rights and responsibilities in respect of the construction, operation, maintenance and management of the HZMB Main Bridge.

The governments also established a Joint Works Committee of the Three Governments on May 24, 2010, which will  supervise the implementation of the HZMB project. This month, the governments will also establish the future managing body of the Main Bridge (the HZMB Authority) on the basis of the Articles of Association for the HZMB Authority.

One of the major functions of the Hong Kong-Shenzhen Western Express Line (WEL) is to promote the development of Qianhai in Shenzhen and the Northwest New Territories (NWNT). It is important for the design of the WEL to take into consideration the planning of these two development areas and to make corresponding arrangements.

With the development projects of Qianhai and NWNT being taken forward, clearer planning parameters for these areas will be available. This will enable a more in-depth studies on the WEL to be conducted, and to explore various alignment options and their respective patronage forecasts, technical standards, service requirements, etc.  

Construction work on the Hong Kong section of the Guangdong-Shenzhen-Hong Kong Express Rail Link commenced in late January. The whole project is expected to be completed in 2015.

Cooperation on environmental protection

The efforts taken by the Hong Kong and Guangdong governments to improve regional air quality are bearing fruit. Notwithstanding the continuing growth in the economy of the Pearl River Delta region, the average annual concentration of sulfur dioxide and nitrogen dioxide in the region decreased by 26% and 7%, respectively, in 2009 as compared to 2008 levels. This is the result of the continual efforts of both sides in implementing emission reduction measures.

The two governments will continue to take forward the emission reduction measures under the Pearl River Delta Regional Air Quality Management Plan in order to further improve regional air quality, with the target to complete the study on the post-2010 arrangements for emission reduction in the Pearl River Delta region this year. Furthermore, both sides are actively pursuing cooperation in respect of the Cleaner Production Partnership Program and cross-boundary water quality protection.

Medical cooperation

On medical collaboration, under Supplement VII to CEPA, Hong Kong service providers are allowed to establish wholly owned hospitals in certain provinces and cities, including Guangdong Province. In addition, Hong Kong service providers are allowed to set up convalescent hospitals in Guangdong Province, especially on a wholly owned basis. This measure allows Hong Kong medical service providers to provide more diversified medical services to people on the Mainland. At the same time, this can promote exchanges and cooperation between the two places in the area of medical and health services, as well as improve the standard of medical services provided on the Mainland.

In addition, the HKSARG will develop a set of standards for 200 Chinese herbal medicines commonly used in Hong Kong in collaboration with local, Mainland and international experts. This can help establish standards for Chinese herbal medicines that are widely recognized and facilitate the promotion of Chinese medicine to the world.  

Education cooperation

On education, it was reported at the Working Meeting that the Education Bureau of the HKSARG and the Department of Education of Guangdong Province jointly held the Hong Kong/Guangdong Expert Group on Cooperation in Education meeting in June this year. Both sides recognized the efforts made in promoting education development and cooperation, and proposed strategic directions for future development. Both sides also recognized that achievements have been made.

Working closely with the Department of Education of Guangdong Province in the past year, both sides have achieved fruitful outcomes on education collaboration in various domains, including higher education and vocational education, teacher cooperation and training exchanges, the Sister School Scheme and the pilot project on the operation of Hong Kong children's classes in Shenzhen Minban schools. Looking ahead, both sides will:

• encourage Hong Kong higher-education institutions to consider employing innovative collaboration modes with education institutions in Guangdong;
• continue teacher training, student exchanges, in-service training provision and collaborative initiatives under vocational education;
• increase the number of schools or classes for Hong Kong children living in Shenzhen, continue the implementation of the Sister School Scheme and explore strengthening exchanges among sister schools; and
• strengthen teacher training and develop two-way exchanges.

Both sides will also continue to work closely to foster broader, deeper and more multifaceted educational collaboration, with a view to nurturing talent for our country.