CEPA (Closer Economic Partnership Arrangement) is conducive to Hong Kong economy as an international financial, logistics and business services hub, Hong Kong chief executive Tung Chee Hwa said Friday.

He said Hong Kong's sustainable development is attainable with the Central Government's strong support.

Addressing the HK Bank of China's seminar CEPA - A Catalyst for Sustainable Economic Growth in Hong Kong, Tung said CEPA aims to foster economic exchanges and co-operation between Hong Kong and the mainland.

He said Hong Kong has been moving up the value-added chain by lowering production costs and enhancing effectiveness.

"Backed by the mainland and engaged globally, Hong Kong must consolidate its position," he added.

On Hong Kong-Guangdong co-operation, Tung said Hong Kong gives full play to the strengths of its world-class institutions and its deep pool of talent to help the Pearl River Delta (PRD) develop the international standards and market mechanisms that would enhance its global competitiveness.

Hong Kong and the PRD complemented each other, Tung said, adding that transport and communication networks with neighboring areas as well as business ties with the mainland's central and western regions should be further enhanced.

(Xinhua News Agency September 20, 2003)