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Stronger HK ties bolster Taiwan's diplomatic message

Taiwan was one of the few bright spots in an otherwise lackluster 2009 policy address by Hong Kong's Chief Executive Donald Tsang, whose speech Wednesday was rated by a University of Hong Kong survey as the least popular in his five-year tenure.

In the former British colony's pivotal annual address, Tsang proposed three major policies to improve ties between Hong Kong and Taiwan.

The first would be Hong Kong's establishment of a council for cultural and economic exchange with Taiwan, which could include a Hong Kong government office opening in Taipei. .

Tsang also advocated enhanced economic cooperation, including easing tax burdens, primarily in the service sector, and for talks to avoid double taxation on corporations, incomes, goods and services.

The Hong Kong executive called for an expansion of Hong Kong's strategic importance in cross-strait finance, trade and travel, in addition to wider business use of the Chinese currency (renminbi) among Hong Kong, Taiwan and mainland China.

Hong Kong pledged to help local travel agencies draw Chinese tourists to Taiwan and study the possibility of regional cruise lines stopping in China, Hong Kong and Taiwan.

Perhaps the most significant was Tsang's expressed wish to potentially visit Taiwan as Hong Kong's chief executive; such a visit would be the first by a Hong Kong leader in modern times.

Hong Kong has been a casualty in the recent thawing of Taiwan-China relations. Hong Kong's tourism businesses have taken a hit since the launch of direct flights between Taiwanese and mainland Chinese cities.

Hong Kong had seen a 10 percent drop in tourists from Taiwan, the city's second-biggest tourism market, in the first eight months of this year, according to the Hong Kong newspaper the Apple Daily.

No longer a hub for Taiwanese tourists en route to the mainland, Hong Kong must enhance its attractiveness as a tourist destination; establishing an office in Taiwan will surely help.

Hong Kong has already loosened restrictions upon travelers from Taiwan; a Hong Kong presence in Taipei could allow travelers to bypass the bureaucracy of obtaining a visa.

Additionally, service sector economic cooperation can help Hong Kong businesses make inroads into the Taiwan market while helping Taiwan's developing businesses learn from Hong Kong veterans.

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