Hong Kong and Guangdong Province should join hands to take on a leading role in the creation of a new regional economic bloc.

Frederick Lam, executive director of the Trade Development Council, said this yesterday at a government discussion forum on regional economic co-operation.

"Hong Kong has many distinct advantages, but it must join forces with neighbouring Guangdong Province to lead the economic development of the Pan-Pearl River Delta region," Lam said.

The SAR or the Guangdong Province alone cannot be the "dragon heads" of the region, they must combine their strengths, he stressed.

Lam added that the territory's integration with the pan-delta region is in accordance with world economic trends.

"With a population of 450 million, the region is comparable to the European Union and NAFTA, and the pan-delta concept can also be compared to these economic entities," he added.

The Pan-Pearl River Delta concept, proposed last year by Guangdong provincial Party secretary Zhang Dejiang, aims to further economic integration in the region.

The concept involves nine provinces and two special administrative regions, namely Guangdong, Jiangxi, Fujian, Guizhou, Guangxi, Sichuan, Yunnan, Hunan, Hainan, Hong Kong and Macao.

Chairman of Hopewell Holdings Gordon Wu said Hong Kong must seize the opportunity to further integrate with the pan-delta group, which is a burgeoning economic force.

"I believe co-operation with the region is essential for the territory's long-term economic prosperity. With this new arrangement, we can maximize our advantage as the pan-delta's window to the world," Wu said.

Chairman of the Federation of Hong Kong Industries Andrew Leung said Hong Kong must transcend the concept of being a single city. "We must eliminate local protectionism, which is a hindrance to economic integration. When transport and economic barriers are removed, Hong Kong's businesses will have better access to the region's raw materials, facilities and talents, furthering collaboration efforts," Leung said.

To push forward the proposal, the first meeting of the Pan-Pearl River Delta Regional Co-operation Forum will be held in the territory on June 1. The chief executives of Hong Kong and Macao and leaders of the nine provinces are expected to attend.

(HK Edition 05/21/2004 page2)