supporting Hong Kong social welfare organisations to operate various social services in Guangdong;

promoting exchanges and sharing of teaching resources in primary and secondary education; allowing more students to study in the universities of the other side;

re-examining existing welfare policies concerning Hong Kong residents in Guangdong with regard to the implications of the various co-operation initiatives.

The PRD will be a role model for "green living" for the rest of China. We will take the lead by setting the most stringent air quality indices and emission standards. A cross-boundary, 400-kilometer corridor of natural preserve will act as a green buffer for the region. Resources will be committed to improving water quality, and policies implemented to promote environmental industries and the use of clean and renewable energy.

The framework agreement also contains myriad business-friendly initiatives to support economic co-operation. These include:

financial services - promoting exchanges and co-operation of financial markets, institutions, talents; supporting the development of off-shore Renminbi business in Hong Kong;

market access - further opening up the Guangdong market under the CEPA framework and various pilot schemes. This will facilitate Hong Kong services providers (including professionals) to operate in Guangdong, support Hong Kong services industry in moving up the value chain, and encourage companies to jointly tap the business opportunities arising from services outsourcing. Hong Kong companies will also be able to establish their distribution and logistics networks in the mainland to further penetrate the domestic market;

e-business - promoting mutual recognition of electronic signature certificates and enhancing common e-business technologies such as accreditation, online payment, and major standards;

technical standards - collaborating on technical standards with a view to developing a set of common standards for services industries;

manufacturing industries - supporting the restructuring and upgrading of the processing trade. Innovation and technology will play a crucial role in this upgrading exercise, which aims to propel the PRD region up the international league of technology and innovation hubs. The agreement promotes commitment of funding and equipment to technological co-operation through favorable policies, commercialisation of Hong Kong R&D breakthroughs in Guangdong, attracting international high-tech companies to conduct R&D activities in the PRD, and stepping up intellectual property rights protection.

The framework agreement gives the blueprint and roadmap for forging a closer partnership between Hong Kong and Guangdong. The two sides will now press ahead with its implementation. In particular, we will:

act on the key action areas for 2010 as agreed between the two governments;

complete the planning studies jointly undertaken by the two sides - quality living, infrastructure, tourism, action plan of the Bay Area of the Pearl River Estuary;

take forward the co-operation initiatives relating to selected regions in the PRD, in particular the planning and development of the Qianhai area in Shenzhen;

work closely with central authorities to incorporate the major features of the framework agreement in the National 12th Five-Year Plan starting next year.

We are turning a new chapter in our collaboration with Guangdong. With determination and concerted efforts, it will be just a matter of time before we tear down the invisible wall that stands in the way of joint development.

The author is chief secretary for Administration of Hong Kong.

(China Daily 04/09/2010 page9)