U.S. and Hong Kong (1985-1997)

COMMERCE 10/6 RELEASE ON SEC. DALEY VISIT TO HONG KONG

Following is the text of the press release:

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October 6, 1997

U.S. SECRETARY OF COMMERCE WILLIAM M. DALEY IN HONG KONG TO STRESS CONTINUED U.S. SUPPORT

Visit coincides with the close of the first 100 days

as Special Administrative Region

Hong Kong -- U.S. Secretary of Commerce William M. Daley today met with top government officials and business representatives in Hong Kong to reinforce the United States commitment to Hong Kong as it marks the passing of the first 100 days as a Special Administrative Region this week. Beginning a three city visit to Hong Kong and China, Secretary Daley met with Chief Executive Tung Chee Hwa, Chief Secretary for Administration Anson Chan, and Secretary of Trade and Industry Denise Yue, before addressing the American Chamber of Commerce.

In remarks to the American Chamber of Commerce, Secretary Daley observed that in the first 100 days since the handover, "Hong Kong is staying the course in terms of remaining a free and open society." He continued, "It is of the utmost importance for our bilateral relationship that Hong Kong continues to be Hong Kong. It must remain a free and open society with a stable economy."

Earlier in the day, Secretary Daley and Secretary Yue agreed to closer cooperation on trade in strategic commodities. Secretary Daley said, "I am pleased with Hong Kong's maintaining effective export controls and continued cooperation. This understanding underscores Hong Kong's commitment to the integrity of its controls. It supports our policy of giving Hong Kong broad access to U.S. goods and technology." The understanding provides for regular meetings, information sharing and enforcement cooperation. It states Hong Kong's intention to comply with and implement internationally accepted export controls.

In meetings with government officials and in remarks before the American Chamber of Commerce, Secretary Daley raised concerns about intellectual property rights protection. He recognized Hong Kong's increased efforts to combat piracy but noted that continued widespread retail sales of pirated goods continue. "From my discussions with Hong Kong officials, I believe the Hong Kong government recognizes the gravity of the problem and it is taking steps to address the situation." He underscored the need for prompt and effective action against both the production and retailing of pirated software and CDs.

In discussing his trip to Beijing, Secretary Daley said that he would work to increase market access for U.S. companies in the Chinese market during the 11th session of the Joint Commission on Commerce and Trade (JCCT) in meetings with Chinese senior officials.

Secretary Daley told the American Chamber of Commerce that while in China, he will "reaffirm the important role a free and open Hong Kong plays in the global market as well as promote the development of U.S.-China trade -- in a more balanced manner. The U.S. has a strong interest in expanding trade with China, in its continued economic development and in the liberalization and opening of its economy."

In addition to China's accession to the World Trade Organization, the JCCT will focus on building the practical foundation for a commercial environment in a way that enables commerce to grow. The agenda will focus on commercial law, trade finance, standards, market access, taxes, price caps on pharmaceuticals and medical equipment, export controls, and domestic distribution.

Secretary Daley will also travel to Dalian, China, October 8-9 to participate in the first China-U.S. Telecommunications Summit where 20 U.S. companies will participate, along with U.S. and Chinese government officials, in discussions on the future of the Chinese telecommunications market. U.S. companies are the most advanced in the world in this field and expect to play a large role in this dynamic market.

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