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The SAR government is promoting exchanges with Taiwan on all fronts through the setting up of a Trade Development Council (TDC) office there and a trade cooperation committee with the island administration, Secretary for Constitutional and Mainland Affairs Stephen Lam said Friday.

Speaking at a ceremony to launch a study tour on Taiwan's economic and social environment by youths from across the Taiwan Straits, Lam underlined the SAR government's Taiwan policy and its views on cross-Straits relations.

He pointed out that Taiwan is Hong Kong's fourth-largest trading partner. Bilateral trade last year topped HK$258 billion. Every year, Taiwanese make 2.2 millions trips to Hong Kong for business or pleasure, while Hongkongers make more than 300,000 trips to Taiwan.

This year, the SAR government has launched a two-pronged approach to promote exchanges with the island, Lam said.

First, the TDC will open an office in Taipei, the first time a quasi-government and statutory body will do so. Lam stressed this is one major step in developing a long-term relationship with Taiwan.

Furthermore, the SAR government has proposed the establishment of a Hong Kong-Taiwan trade-cooperation committee. Members of the committee would come from private enterprises, but support would also come from the government.

Lam again dismissed the possible impact of "three direct links" on Hong Kong.

"In the long run, when the economic region across the Straits begins to flourish, the SAR will definitely gain more room for development," Lam said.

(HK Edition 10/04/2008 page1)