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FS signs investment agreement with Belgium and Luxembourg
The Financial Secretary, Mr Donald Tsang, today (Monday, Brussels time) signed on behalf of Hong Kong an internationally-binding agreement for the promotion and protection of investments with Belgium and Luxembourg in two separate ceremonies.
The first ceremony was held in Brussels where the agreement between Hong Kong and Belgium was signed. The Belgian government was represented by Mr Philippe Maystadt, Deputy Prime Minister and Minister of Finance; Mr Luc Van den Brande, Minister-President and Minister for Foreign Policy, European Affairs, Science and Technology of the Government of Flanders, and Mr Jos Chabert, Minister of Finance, the Budget, Civil Services and Foreign Relations in the Government of the Brussels-Capital Region.
Speaking at the ceremony, Mr Tsang said the agreement "represents a major step for Hong Kong in strengthening economic ties with Belgium and Luxembourg".
He also took the opportunity to assure investors from Belgium that the elements that led to Hong Kong's success would remain unchanged after 1997.
In a separate occasion, Mr Mare Fischback, Minister of Budget, signed the agreement on behalf of Luxembourg during a dinner meeting with Mr Tsang in Luxembourg.
Under the terms of the agreement, the three governments will provide for equal treatment of investors, compensation if investments are expropriated, and free transfer of investments and returns.
The agreement also provides for the settlement of investment disputes in accordance with internationally accepted rules.
The agreement, upon ratification by the respective Belgian and Luxembourg legislatures, is effective for 15 years in the first instance, and renewable every 10
years.
At present, Belgium and Luxembourg together is Hong Kong's 20th largest trading partner, with bilateral trade approaching $20 billion in 1995.
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