Celebrating the 25th anniversary of the Hong Kong Dinner in London are, from left: Attorney General Baroness Scotland; Donald Tsang, Hong Kong Chief Executive; and Jack So, Chairman, Hong Kong Trade Development Council
	Baroness Scotland outlines the longstanding ties that exist between Hong Kong and Britain
	Chief Executive Donald Tsang urges governments to resist stepping back from free market policies

Hong Kong Chief Executive Donald Tsang has called for a concerted global effort to tackle the financial turmoil, and for the world's economies to resist the temptation to step back from free-market policies. The Chief Executive made his case at the annual Hong Kong Dinner in London last month. Hosted by Hong Kong Trade Development Council Chairman Jack So, the 25th edition of the event featured Mr Tsang as Hong Kong guest of honour and British Attorney General the Rt Hon Baroness Scotland as UK guest of honour.

"If this crisis has proved one thing, it is that the world is linked together like never before – and those links defy political boundaries," Mr Tsang noted. "They are only going to become deeper, more entrenched and more intertwined. So governments need to ensure that whatever they plan, it is a coordinated plan that won't create uncertainty in other markets."

He urged governments to not retreat from free-market principles, whether by adopting protectionist policies or through over-regulation, and calling them "quick-fix" responses.

Investment benefits

"The world has benefited greatly from more open and free trade and investment regimes," Mr Tsang argued. Asia, he said, is proof that countries can benefit greatly from trade liberalisation.

Baroness Scotland noted that the Chief Executive had extensive discussions with British Prime Minister Gordon Brown during his visit. She agreed with the Chief Executive call for a shared approach to addressing the current economic uncertainties, one based on the consensus reached at the recent G20 summit in Washington, in which Hong Kong played an important role. 

"You have much valuable experience to share, having skilfully steered Hong Kong through the Asian financial crisis 10 years ago, and subsequently set about a programme of rigorous reform. 

"Like us, you argued in Washington that markets should be kept open while we seek an international response to the crisis. You agree with us on the need for better global supervision and regulation. And you agree with the priority we have given to concluding the Doha trade round as soon as possible.

"We are pleased that by participating in key discussions, and through your membership in the WTO, APEC and the Financial Stability Forum, Hong Kong is fully engaged in the process of reform, needed to make the international financial architecture fit for the 21st century." 

Exports grow

Baroness Scotland noted that UK-Hong Kong trade was worth US$18 billion last year. UK exports to Hong Kong increased nearly 60 per cent in the first half of this year, compared with the same period in 2007. And Hong Kong is the leading business hub for UK companies in Asia. She told guests that the current economic instability serves only to deepen the enduring business links between Hong Kong and Britain.

"It is when times are tough that you most need your friends. And the continuing friendship and partnership between Hong Kong and Britain remains deep and broad-based. We have a great many things in common, not least a shared legal heritage based on English common law, but also deeply held common values of fair play and the sanctity of the rule of law. Britain's commitment to Hong Kong is strong and the relationship between us is flourishing."