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EU to deepen cooperation with Hong Kong and Macao
HONG KONG, Oct. 31 (Xinhua) -- The EU will broaden and deepen its cooperation with the Hong Kong and Macao special administrative regions in areas of common interests, and such cooperation should be backed-up by financial instrument, said a document issued here Tuesday.


The communication, entitled "The European Union, Hong Kong and Macao: possibilities for Cooperation 2007-2013", was adopted by the European Commission (EC) in Brussels and released here by the EC Head Office in Hong Kong and Macao.


The EU's relations with the Hong Kong and Macao special administrative regions (SARs) have continued to develop since they returned to the motherland, said the paper, adding that both the SARs have been governed according to the principle of "One country, Two systems" set out in detail in a separate basic law for each.


"In general, the 'One country, Two systems' principle has been respected and is working well for the people of Hong Kong and Macao," said the document.


The document sets a number of challenging new objectives for moving forward cooperation in seven key areas: trade and customs, finance, people to people links including academia, transport, the environment, health and food safety.


"EU interests in Hong Kong are substantial," said the paper, noting that the SAR is EU's 16th bilateral trading partner by volume, and if the huge transit trade via Hong Kong to China is taken into account, ranks as high as six.


The two-way trade remains close to 30 billion euros on an annual basis, and Hong Kong continues to play a "gateway" function for a number of EU newcomers looking for access to the Chinese mainland market, according to the paper.


European business activity in Hong Kong accounts for the largest foreign presence, with EU companies constituting the largest number of foreign companies with regional headquarters and regional offices based in Hong Kong, said the paper.


As to Macao, the document says that the EU is Macao's third largest trading partner. "While there are only a few EU companies based in Macao, those that are there express satisfaction with the infrastructure and communications," said the document.


Hong Kong and Macao are important partners that share many values and institutional structures with the EU in the economic, regulatory, social and cultural spheres, said the paper.


"Dialogue and cooperation should therefore be backed up and reinforced by an EU financing instrument," said the document.


In response to the EC's communication, a government spokesman of the Hong Kong Special Administrative Region (HKSAR) said that the government welcomed the EC acknowledgment that the "One Country, Two Systems" principle had been respected and was working well for the people of Hong Kong.


The spokesman also welcomed the EC proposal to enhance co-operation and development of closer relations between the EU and the HKSAR in trade, economic and other areas within Hong Kong's high degree of autonomy under the Basic Law.


"For this purpose, we will continue to work out arrangements with the EC for conducting the proposed regular dialogue between the HKSAR Government and the EC. The agenda for the dialogue will cover items to be mutually agreed," the spokesman said.


Hong Kong will continue to strengthen customs co-operation on intellectual property rights. "This includes measures to combat copyright infringement and counterfeit activities," he added.


On co-operation on tax matters, the spokesman said that the HKSAR is committed to pursuing effective exchange of information within the ambit of bilateral comprehensive double taxation agreements and in accordance with its legislation.


"We also have stringent anti-tax avoidance legislation. We are vigilant in combating tax avoidance and evasion, and we support international co-operation on this front by improving transparency and the exchange of information in accordance with our legislation."


On constitutional development, the spokesman said that the Central Authorities and the HKSAR Government are fully committed to achieving the ultimate aim of universal suffrage in accordance with the Basic Law.


In November last year, the Chief Executive initiated the discussion on formulating a roadmap for universal suffrage through the Commission on Strategic Development, he said. "The discussion is progressing well."


"Constitutional development is part of our internal affairs. The HKSAR will deal with it in accordance with the Basic Law. We hope and believe that the EC will continue to respect this principle," the spokesman added.

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