77. In addition to implementing and furthering CEPA, the Government will continue to promote co-operation between Hong Kong and Guangdong. We will actively participate in the development of the Pan-Pearl River Delta (Pan-PRD) and foster bilateral co-operation with other Mainland provinces and cities.

78. Through concerted efforts, Hong Kong and Guangdong have entered a new stage of co-operation. The scope of co-operation has expanded beyond trade and boundary-crossing facilities to many areas, including logistics, tourism, regional planning, technology, intellectual property rights, education, transportation, environmental protection, health, culture and sports. Of particular significance is the Hong Kong-Zhuhai-Macao Bridge, the biggest cross-boundary infrastructural project since the return of Hong Kong to China. It has undergone a feasibility study and we will soon proceed to the next stage of work after the official establishment of the project by the State Council. Construction of the Hong Kong section of the Hong Kong-Shenzhen Western Corridor will be completed by the end of 2005 as scheduled. We will continue to plan and build cross-boundary infrastructure. We will expand the scope of co-operation within the PRD for mutual prosperity. Both sides will actively work for the expansion of the co-operative hinterland from the PRD area to the north, east and west of Guangdong. On the solid foundation of co-operation between Guangdong and Hong Kong, we will work together to promote regional co-operation in the Pan-PRD.

79. The formal launching of Pan-PRD co-operation last June opened up long-term prospects for Hong Kong. This vast area with a population of 450 million will gradually develop into a market characterised by the free flow of economic fundamentals, similar to the booming Greater PRD, only much larger. As an integral part of the Pan-PRD, Hong Kong will be able to deploy its advantages as an international trading, financial, logistics and information centre. By expanding the scope and coverage of our services sector, we can lead this vast hinterland to the global market. It will in turn provide Hong Kong with an enormous internal market for our goods and services. Hong Kong, in co-operation with other provinces in the region, will work towards perfecting the transport links within the Pan-PRD and strive to create a fair and orderly market environment that offers abundant opportunities for our investors and services sector.