He made the remarks at a reception hosted for about 200 chief executive officers and representatives of overseas and mainland companies that recently established a business presence or expanded operations in Hong Kong.

Tung said one of the cornerstones of his policy platform is the promotion of innovation and technology for adding value to Hong Kong's economy against the background of the globalization process.

He said the various programs and projects under way would enhance Hong Kong's productivity, strengthen its competitiveness and identify new engines of growth.

"Our determination to support investment in research and development, together with other reforms in related areas, notably education, and the impact of the mainland's continued rapid growth in the wake of its accession to the World Trade Organization, will be able to bring Hong Kong to new heights in the coming years," he said.

The guests at the reception represented over 100 overseas and mainland companies that set up operations or increased their overall investment in Hong Kong between July 1, 2001 and June 30, 2002.

"I am particularly delighted that we have a number of mainland companies joining us this time. This underlines our increasing role as a gateway for successful mainland enterprises to expand overseas," he said.

He noted that many companies set up offices in Hong Kong because Hong Kong is the best place in the world for doing business and the growth of the Pearl River Delta offers tremendous potential for companies around the world.

"We are determined to maintain and enhance our advantages to ensure that we retain the best business environment in Asia," he said.

(China Daily July 12, 2002)