26.         As neighbours, Hong Kong and Guangdong Province are mutually dependent and complementary to each other. As such, there is far-reaching strategic significance in enhancing and deepening our co-operation. The Government will seek to foster comprehensive co-operation between Hong Kong and Guangdong in the areas of finance, modern service industries, industry collaboration, international shipping, logistics, trade, convention and exhibition, tourism, environmental protection, building of a quality living area and social administration. We will achieve this through different measures including ensuring effective implementation of CEPA and leveraging the early and pilot measures for Hong Kong service industries to tap the Guangdong market. We will also take forward the Hong Kong/Guangdong Co-operation Framework Agreement. In addition, we will promote better interface between the major transport infrastructure facilities of Hong Kong and Guangdong.

27.         The CPG has adopted the "early and pilot implementation" approach in Guangdong Province to improve our service industries' access to the Mainland market. This policy has proved successful in assisting Hong Kong in better capitalising on its advantages as a platform to provide funds, talents and technology to the Mainland. During my duty visit to Beijing last month, I proposed to the CPG that this approach be extended beyond Guangdong Province to other provinces and municipalities in the Pan-Pearl River Delta region. The proposal received positive feedback from the CPG. We will take forward the proposal with the relevant CPG ministries and provinces as soon as possible.

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