1996 - 2000

The Better Hong Kong Foundation held a delegation visit to Germany, Finland, Sweden and the Netherlands. This mission demonstrated the importance Hong Kong’s major trading partners in Europe attached to Hong Kong’s geo-economic position and their confidence in its people and the strength of business in Asia. Delegates presented state secretaries, ministers, senior government officials and business leaders in host countries with the latest political and economic situation of Hong Kong, its investment outlook and developments in technology and innovation. During the visit, the delegation held discussions with influential think tanks and non-government organizations on issues of common interest and mutual concern. Delegates also met with the senior management of renowned multinational corporations, including Germany’s DaimlerChrysler and Siemens, Finland’s Nokia, Sweden’s Ericsson and Philips of the Netherlands. The mission toured science parks in Berlin, Stockholm and Amsterdam, and discussed Hong Kong’s partnership prospects with them. The group also gave presentations at luncheons and dinners hosted by important forums and business associations in Berlin, Munich, Helsinki, Stockholm and Amsterdam. Among the delegates were distinguished members of Hong Kong’s business and academic communities, including Professor Lau Siu Kai, Associate Director, Hong Kong Institute of Asia Pacific Studies, the Chinese University of Hong Kong; Professor Francis Lui, Director, Centre for Economic Development, Hong Kong University of Science and Technology; Mr. Daniel Fung, Senior Counsel, Des Voeux Chamber and former Solicitor-General, Hong Kong Government; Mr. Peter Lo, CEO, Provisional Hong Kong Science Park/Hong Kong Industrial Estates and Hong Kong Industrial Technology Centre; Dr. Sudirto, President Director, PT Bomar Securities, a member of the CP Group; Ms. Anne Chen, Partner, Wlkinson & Grist; and Ms. Bing-ling CHOW, Vice President, Wong’s Electronics. For the first time, a Hong Kong Government Principal Investment Consultant from the Hong Kong Economic & Trade Office in Europe, Mr. Y. C. Tam, joined the Foundation’s event. At public forums and business meetings, Professor Lau briefed the European audiences on Hong Kong’s constitutional development, the major social issues after the Handover, public aspirations and the political landscape in the years ahead. Professor Lui reiterated the importance of Hong Kong in Asia Pacific as an international business centre and a gateway to China. Foreign investors would benefit both from their investment and partnership with Hong Kong corporations and from using it as a regional base to China. China’s imminent accession to WTO would provide even greater business opportunities for Hong Kong, especially in the financial and service sectors, with the potential for commercial activities to grow in both scale and number. As a keynote speaker at the business gatherings, Mr. Daniel Fung articulated the four pillars of strength for Hong Kong’s continued top ranking as the freest economy in the world. The ‘level-playing field’, WTO business compliance, zero tolerance for corruption and the rule of law were the formula for Hong Kong’s success. Mr. Fung added that, “In keeping abreast with today’s knowledge economy and trade globalization, Hong Kong is expanding its business portfolio to embark on a bold and visionary infrastructure development on technology and innovation, such as Cyberport and science parks, and a mission-critical education and human resource policy and strategy package to upgrade the quality of our work force.” Delegate Peter Lo used the visit to introduce his three related technology and industrial organizations to business communities and prospective clients as well as initiating partnership discussions with the science parks in the host countries.

The Better Hong Kong Foundation held a Hong Kong Budget Forum immediately following the Budget Speech by the HKSAR Government’s Financial Secretary.  Five experts from various sectors were invited to comment on the government’s financial blueprint for the year 2000/2001. The experts included: Professor Richard Wong, Director, School of Business, The University of Hong Kong; Professor Fan Yiu Kwan, Dean, School of Business of the Hong Kong Baptist University; Mr. Marcellus Wong, Partner, Tax Services, Arthur Andersen; Mr. Francis Lau, Executive Secretary, Chinese Manufacturers’ Association of Hong Kong; and, Mr. Wong Kwok Hing, Deputy Director, Social Affairs Committee, Hong Kong Federation of Trade Unions. Professor Wong said, “The long term development of the Hong Kong economy relies on grasping economic opportunities and in dealing with long-term issues such as the globalization of the economy, economic transformation, development of information technology and the impact of the business environment.” Professor Wong also agreed with Mr. Tsang’s suggestions of strengthening labour training and education. As to the plan of reforming the financial system and the introduction of a US dollar clearinghouse, Professor Wong considered it a creative idea that would help strengthen the position of Hong Kong as an international financial centre. Professor Wong explained that “a US dollar clearinghouse would help save time for currency exchange, especially H-share companies which intend to list in the US and which already use HK dollars to raise capital locally. It would also protect investors if for any reason the HK/US dollar peg became unstable.” He also praised Mr. Tsang’s commitment of reviewing the entire tax system, but warned of the possible danger that if the review results favoured the taxing of internet activities or taxing income out of Hong Kong it would seriously affect economic and investment initiatives. He stressed that “a narrow tax base was not a problem, but the question was whether there were adequate measures to recover tax and deal with the instability in an economic cycle.” Professor Fan also welcomed the establishment of a US dollar clearinghouse. He explained that “such mechanisms. in the Asian region only currently exist in Japan. The introduction of this in Hong Kong would strengthen the territory’s position as a major financial centre in Asia.” As to the tax review plan, he thought the government should not only be considering adding new taxes, as “the introduction of a sales tax was a large move which would have implications on economic resources, high opportunity costs and little gain for the economy.” Rather, he felt that, “the government should look for ways to improve existing tax, such as rates which already have a wide base. As it is already in existence it would not require further examination by the Legislative Council.” Mr. Marcellus Wong, also Past Chairman of the Taxation Association said that, “this was not the first time Mr. Tsang used the approach of ‘suggesting little'”. He pointed out that the budget failed to provide plans to respond to the economic opportunities created by the globalization of the economy and to help small and medium enterprises face the transformation. He suggested the government should learn from countries such as Singapore and India, and provide SMEs with tax relief to develop e-commerce to help them adapt to the changing economy. In the area of a tax review, he disagreed with the government’s plan to have an internal body to review the tax system while also setting up an independent committee to examine new tax methods. He thought the work should not be split into two and should be done by the independent body alone. Mr. Lau welcomed the government’s establishment of the new Innovation and Technology Commission and the renaming of the Trade Department to the Industry and Trade Department. He noted that “Hong Kong manufacturers have always confused the Industry Department and the Trade Department. The merging of the two departments would definitely help solve manufacturers’ problems more effectively.” Mr. Wong Kwok Hing, who represented workers’ benefits, also welcomed the government’s move of reviewing the tax system. He said, “apart from examining ways to widen the tax base, the government should consider the ‘vertical fairness principle’. For example, the more a company earns, the more it should contribute.” He disagreed with Mr. Tsang’s view that this would force large companies to split into smaller ones to avoid tax, adding that “the government should be able to introduce measures against it”. He also noted that the Budget lacked suggestions to help people who were relying on social security to find work and to assist SMEs in facing the changing economy. He hoped the government could set up an employment board to coordinate employment issues. The suggestions made in the Forum have been directed to the SAR government for their consideration.

A Better Hong Kong Foundation delegation visited Canada and the United States where they met with government officials, congressmen, policy advisors and business leaders to discuss Hong Kong issues. The discussions focused on technology, financial trends and the economic outlook of Hong Kong in the face of China’s imminent accession to the World Trade Organization. The Better Hong Kong Foundation organizes two to three delegations of this nature to North America each year to promote Hong Kong as an international business centre. The mission, led by The Hon. Nellie Fong, Executive Councillor of the HKSAR and Chairman of the Foundation’s Executive Committee, visited Toronto, Canada, and Washington, D.C., Northern Virginia, Silicon Valley and San Francisco in the U.S. from January 27 to February 5, 2000. The delegation was composed of prominent Hong Kong industrialists, CEOs from the IT sector and leading members of the financial and legal community – including Mr. Anthony Au, Dr. Cheng Wen Cheng, Mr. Raymond Chu, Mr. Daniel Fung, Dr. Frederick Hu, Mr. Laurence Li, Mr. Liu Mingkang, Mr. Peter Lo, Mr. W.H. Ng, Mr. Andrew Sheng, Mr. Lawrence Tan, Mr. Thomas Tang, Mr. Ben Wong, Mr. George Yuen and Mr. Alvin Lee. In the U.S., the delegation met with members of Congress, influential think tanks such as the CATO Institute and the American Enterprise Institute, government officials in the Clinton administration, the Chairman and CEO of NASD, influential technology councils and business associations. In Washington, D.C., the delegation held meetings with leading technology firms such as AOL, EDS, ManTech International Corp, Motley Fool and Network Solutions. The delegation also met with The Northern Virginia Technology Council, The Information Technology Industry Council, The Greater Washington Initiative and The Coalition of Employment through Exports; and venture capital firms such as Venturehouse and FBR Venture Capital Partners. High-tech and venture capitalist firms on the delegation’s Silicon Valley and San Francisco itinerary included Cisco Systems, Intel, Oracle, Solectron, Goldman Sachs, H & Q Asia Pacific, National Semiconductors and Materials Association, the National California Venture Capital Association and Semiconductor Equipment and Materials International, Pentagon Inc, China Vest, W.I. Harper and the World Affairs Council. The delegation attended dinners hosted by Ambassador Mickey Kantor, former U.S. Secretary of Commerce, and Ms. Jackie Willis, Hong Kong’s U.S. Commissioner in Washington, D.C. In San Francisco, a series of receptions and dinners for the delegation were hosted by Forbes, the Vice Mayor of San Jose, Stanford University, HongKong-SV.com and the Hong Kong Economic & Trade Office, creating even more opportunities for exchanging ideas and networking. Earlier in Toronto, some members of the delegation held useful discussions with government leaders, Ontario Exports, Hong Kong Canada Business Association, Canadian Bankers Association and multinational corporations such as Nortel Networks, Descartes, Sybase Canada, HSBC Canada and Citibank. They also visited The University of Toronto, where they met with members from the software development company Neteka, and the Centre for International Studies. A meeting was also held with the Deans of Law from the University of Toronto and the Osgoode Law School of York University. Meeting with Ambassador Mickey Kantor & AOL

The Better Hong Kong Foundation successfully hosted the Third Annual Business Week CEO Forum in Hong Kong. More than 200 international business and political leaders gathered at the Grand Hyatt Hotel from October 13 to15, to discuss a wide range of business issues around the theme, “Managing the Speed of Change: Meeting the Needs of Tomorrow.” Leaders including the Hon. Tung Chee-Hwa, the Chief Executive of the HKSAR; the Hon. David Li, Chairman and Chief Executive of the Bank of East Asia; the Hon. Yu Xiaosong, Chairman of the China Council for the Promotion of International Trade (CCPIT); and former U.S. President George Bush appeared at the Forum to address Asia’s future challenges. At the opening dinner, the HKSAR Chief Executive Mr. Tung spoke of his vision and plan to position Hong Kong as Asia’s premier international city in the 21st century. Asia’s development in the aftermath of the Asian financial crisis was on the minds of many participants. Dr. David Li, a member of the Foundation’s Board of Trustees, viewed this Forum as a great opportunity for Asia to review the lessons learned after the economic turmoil of the previous two years. During remarks at the Forum gala dinner, he suggested that “The Asian crisis will prove to be part of a step forward, not a step back. What we learn from all this will make us significantly stronger and more prosperous in the years ahead.” With Asia’s future inevitably linked to China’s future, the participation of senior Chinese government officials in the Forum was important. The Hon. Nellie Fong, Chairman of the Foundation’s Executive Committee, when introducing Mr. Yu Xiaosong, Chairman of the China Council for the Promotion of International Trade (CCPIT), noted, “As Asia copes with the aftermath of the region’s financial crisis, China will no doubt serve as a driver of much of Asia’s recovery.” Mr. Yu Xiaosong, in his remarks, reaffirmed China’s commitment to economic reform and to continuing to open its markets to international business. He said, “China, as the largest developing nation in the world, is seizing the opportunities and embracing the challenges with a more open mentality and greater enthusiasm.” At the close of the three-day conference, former U.S. President George Bush gave a keynote address that focused on the world’s move into the new millennium against the background of the present geo-political scenario in the Asia-Pacific region. Mr. Bush praised Hong Kong’s resilience since the handover of July 1, 1997. He used the phrase “promises made, promises kept” to establish the smooth return of Hong Kong to Chinese sovereignty, and reiterated his confidence in Hong Kong under the administration of the Chief Executive, Mr. Tung. President Bush was also optimistic on Asia Pacific’s transformation in the new millennium as regional economies rebounded. However, he warned this was no time for complacency, stressing that bilateral U.S-China relations were crucial to world peace and global prosperity.   Former U.S. President George Bush delivered a keynote address on “Moving into the New Millennium” Trustee Dr. Stanley Ho welcomed Mr. C.H. Tung to attend the Forum

A delegation visit to the U.S. by Hong Kong business and government leaders was organized by the Better Hong Kong Foundation, led by Nellie K.M. Fong, the Executive Councillor of the Hong Kong SAR, and Chairperson of the Foundation’s Executive Committee. According to Mrs. Fong, “there is great interest in what Hong Kong is doing to address the regional economic crisis and widespread recognition that steps we are taking to strengthen our financial markets, develop our information technology capabilities, increase our focus on education, and carry out important reforms in the structure of our civil service will leave Hong Kong well positioned for renewed growth.” The delegation – which included Andrew Sheng, Chairman of the Securities and Futures Commission; Daniel Fung, former Solicitor General of Hong Kong; Richard Li, Chairman and Chief Executive, Pacific Century Group; Richard Wong, Director, School of Business and Professor of Economics at the University of Hong Kong; and George Yuen, the Chief Executive of the Better Hong Kong Foundation – visited New York City, Boston, and Washington D.C. from March 18 to 24. Mr. Sheng addressed members of the financial community in both New York and Washington, and there was great interest in the reforms Hong Kong was making in its securities market, particularly in the proposed merger of the Stock and Futures exchanges. The delegation also held meetings with the New York Stock Exchange, the Federal Reserve Bank of New York, Moody’s Investors Service, and Standard & Poor’s, in addition to a number of leading financial firms. Mr. Li had meetings with a number of business leaders to discuss how the new Cyberport will enable Hong Kong to encourage leading international information technology firms to expand their Hong Kong operations. During his meetings, he revealed that companies such as Microsoft, Intel, IBM, Hewlett Packard, Oracle, Legend, and Yahoo, had already expressed interest in taking part in this major new project. The members of the delegation also met with political leaders in Washington, including members of the Senate Banking Committee and the House of Representatives Asia-Pacific Subcommittee. Sessions were also held with the Institute of International Finance, the Securities and Exchange Commission, and the Commodities and Futures Trading Commission, the Economic Strategy Institute, the Recording Industry Association of America, the U.S. Information Technology Office, and the Congressional Research Service. During the visit, Mr. Daniel Fung held discussions with American Bar Association and law professors in leading U.S. universities. In those talks, he was able to review post-handover developments in Hong Kong’s legal system and the continued importance of the rule of law. Professor Richard Wong joined the delegation in Washington D.C. and contributed significantly to discussions on Hong Kong’s economic outlook and its long-term strategy for economic development. The Boston leg of the visit enabled the group to meet with members of the academic and business communities at Harvard University, the Massachusetts Institute of Technology, and the Biotechnology Process Engineering Center. During meetings throughout the visit, the delegation emphasized the importance of the stabilization of the Japanese yen for financial recovery throughout Asia, and that China’s accession to the World Trade Organisation would both serve as the catalyst for a genuine and comprehensive improvement in U.S. – China relations and also help contribute significantly to growth in the global economy.   (From left) Dr. Daniel Fung, Mrs. Nellie Fong, Mr. Andrew Sheng and Prof. Richard Wong Mr. Andrew Sheng, Chairman of the Securities and Futures Commission, delivered his speech

The Foundation felt that this Fortune CEO roundtable would help to project an image of Hong Kong as a healthy, thriving and sound economy, while countering a negative perception of Hong Kong that developed internationally after the publication of a cover story in Fortune magazine in 1995 entitled “The Death of Hong Kong”. The Fortune cover story during the 1998 CEO Forum was called “Putting Fire into Hong Kong”. More significantly, major international media organizations hosted similar business events with the Foundation, which saw many opinion leaders and corporate leaders endorsing Hong Kong as being one of the world’s best cities for business. Over 100 business and government leaders attend the Forum Press Conference

In August 1998, members of the Better Hong Kong Foundation started to think about what we could do to reinforce public confidence during the economic downturn. After consulting a number of business sectors, we felt it was possible to organise a campaign that would boost the confidence of the people of Hong Kong, unite them, and also show the world that Hong Kong people would overcome whatever difficulties lay ahead of us. The Foundation was able to organise this Campaign within such a short period of time thanks to the enthusiastic participation and support of the many sectors who vividly demonstrated a sense of solidarity among the community. Participating sectors included business, education, hotel, labour, media, movie and entertainment, retail, restaurant, sports, tourism and the eighteen districts throughout the territory. On December 6, 1998, the Campaign was inaugurated with a ceremony featuring an audience of about 5,000 and a live broadcast by the local media. The Campaign’s Patron, the Chief Executive Mr. Tung Chee-Hwa, the Chief Secretary for Administration Mrs. Anson Chan and other community leaders officiated at the ceremony. The launch also marked the beginning of a series of Campaign activities. The education sector organised an essay competition for secondary school students and a painting competition for primary school students to enhance their civic spirit and awareness. Some twenty secondary school student winners were awarded scholarships for a four-week course at Qinghua University in Beijing in August 1999. Thirty winners from the drawing competition were selected for a one-day tour of major Hong Kong landmarks. Several hundred restaurants pledged their support to the Campaign by organising lucky draws and a series of themed promotions, such as “The Appreciation of Delicious Dishes” and “The Best Chinese Cuisine in Hong Kong”. Customers dining at participating restaurants who presented Campaign coupons were given free dishes. The labour sector organised job fairs featuring employment opportunities at various large corporations in early 1999, followed by a seminar on “The Importance of Good Relations between Employers and Employees.” Also, a series of retraining programmes were organised to help job-seekers. The business sector held the “33rd Hong Kong Products Expo” from December 18, 1998, to January 11, 1999, at the Tamar Site in Central. An “SMEs Week” was held by the Industry Department in early February 1999. In the retail sector, some 5,000 retail outlets including chain supermarkets, boutiques, department stores and cafes participated in a joint promotion entitled “Hong Kong Shopping Spree”, organised by the Hong Kong Retail Management Association together with the then Hong Kong Tourist Association (now the Hong Kong Tourism Board) to boost shopper confidence and to stimulate consumption. Additionally, all major shopping malls supported the Campaign by coordinating their respective mall activities to help promote the Campaign message. The Hong Kong Jockey Club also pledged support for the Campaign by organising the “Hong Kong Together” Cup in January 17, 1999. The Homes Affairs Department, together with the eighteen districts, organised more than ninety programmes for the community to show their solidarity with the Campaign. In the sports sector, a wall-painting event held on 26th November, 1998 at the Hong Kong Sports Institute saw thousands of high-spirited students standing in support of Hong Kong’s athletes as they set off for the Asian Games in Bangkok. Sector representatives and the “Hong Kong Together” Campaign Joint Working Committee were there to cheer on the athletes. The Campaign gained momentum and grew, with activities and events taking place right through to the end of 1999. Our aim was to keep this dynamic community spirit going, and to prove to both ourselves and the world that as long as we had confidence in ourselves, our community would come back better and stronger than ever. The Campaign brought together employees and employers, students and teachers, the young and the old – essentially every member of the community – in a show of support for Hong Kong and a demonstration of their faith in Hong Kong. Drawing Competition Essay Competition Student Program The “Hong Kong Together” Campaign Logo The heart-shaped element is a key component of the “Hong Kong Together” Campaign logo, and establishes our basic premise: every aspect of this Campaign comes from the bottom of our hearts. Inside the heart design, the three circles represent Hong Kong people from all walks of life uniting together and standing firm to meet the challenges they face. Next to the heart is the Tsing Ma Bridge and the Hong Kong International Airport, landmarks symbolising Hong Kong as an international city. The logo illustrates the vigour, dynamism and resilience of the Hong Kong people in overcoming difficulties, while also showing our solidarity in building a better Hong Kong together.

The Better Hong Kong Foundation understands that Hong Kong’s economic integration with the Pearl River Delta (PRD) is vital in maintaining the territory’s standing as the premier gateway to Mainland China and as Asia’s World City. The Foundation is working with Chambers of Commerce, Trade Associations, academia and the media on a public awareness campaign on the benefits of this type of regional synergy to both Hong Kong and the PRD. These include enabling PRD cities to find common ground, to create opportunities, to optimize their different areas of strength and to increase the regional competitiveness as the world’s leading manufacturer. The Foundation saw the need early on to capitalize on Hong Kong’s professional expertise and financial prowess to promote the Greater PRD region and its complementary synergy. We are now expanding our activities to cover the pan-PRD region (also known as the 9+2 region) to position Hong Kong as a business and professional support service hub.

The Better Hong Kong Foundation organized the Hong Kong 97 Spectacular – a light and sound show which included an illuminated flotilla, music, water fountains, special effects, lights, lasers and a fireworks display on Victoria Harbour to mark Hong Kong’s first day of Chinese sovereignty and to celebrate a new era on the evening of July 1, 1997. The Foundation believed that July 1 was the perfect time for the Hong Kong community to make a bold statement to the world that captured the confidence in the future of Hong Kong as a Special Administrative Region of China. The event would also build a spirit of togetherness and enable Hong Kong to forge ahead in its new role. The Spectacular brought together the best of Hong Kong, Chinese and overseas talent and reflected the true face of Hong Kong as an international, cosmopolitan city, while offering the community an unforgettable spectacle in which the people of Hong Kong could take part to celebrate the present and their sense of optimism for the future. The US$12 million event was paid for by the Hong Kong commercial sector. The concept of the Spectacular was initiated and developed by Hong Kong people. Thirty-four corporate patrons sponsored the event, and CSS International was chosen as project manager for the event. Don Mischer Productions, who mounted the opening and closing ceremonies at last year’s Olympics Games, produced and mounted the Show. Shipyards in Mainland China were responsible for manufacturing the flotilla barges. Co-organizers of the event were the Association for the Celebration of Reunification of Hong Kong with China and the Association of Hong Kong Guangdong Society Organizations for the Celebration of the Return of Hong Kong to China. Vice-Premier of the State Council, Mr. Qian Qichen with Patrons of Honour 31 illuminated floats sailed around the “pearl”

Two-thirds of Hong Kong business leaders in six specific sectors surveyed expect the territory’s economic growth to continue at current levels or increase following the change of sovereignty next year, according to an independent opinion poll carried out for The Better Hong Kong Foundation. In all, an average of 70.8 per cent of the respondents remained confident in Hong Kong’s business environment when it becomes the Special Administrative Region in 1997. This is one of the key findings of surveys undertaken by The Foundation since December last year with various specific business sectors ranging from Chambers of Commerce, Trade Commissions/Consulates, Banking, Manufacturing/Industry, Tourism & Retail and Accounting. In line with this underlying confidence in Hong Kong and its economic prospects, 74 per cent of the representative sample said they would continue with business as usual, while 19 per cent thought they would increase activity or plan to reassess the situation in 1997, and only 7 per cent of respondents expected to diminish their business presence in the territory or to relocate in light of the change of sovereignty. Two-thirds of the business leaders surveyed felt that the change of sovereignty in Hong Kong would not affect profitability, with the remaining 34 per cent equally split between improving and deteriorating profitability. With respect to the 10 most critical factors for maintaining business confidence, the free flow of capital and an independent legal system topped the list with 80 per cent and 79 per cent respectively, followed by local and international business confidence (both 64 per cent), free trade status (62 per cent), an independent Hong Kong dollar (60 per cent), eradication of corruption (58 per cent), reputation as financial centre of Asia (57 per cent), laissez-faire government policy towards business (56 per cent) and SAR autonomy in government (54 per cent). The survey revealed that one-third of the respondents expect access to China’s mainland market and the availability of cheap imported labour to be the areas where they anticipate improvements to occur as a result of the change in sovereignty. The opinion poll, conducted by Asia Studies – Wirthlin, also showed taxation, the economy, government policy towards business, the police force and legal system as the areas most expected to retain high autonomy beyond 1997, while respondents were less optimistic on the issues relating to the political system, media/broadcasting, human rights, the government of Hong Kong, immigration and Hong Kong’s standing in the international community.   Press Conference Trustee Dr. Henry Cheng (the middle) shared his views with professionals in architectural sector