ENG-2011 — Page 55

Constitution and Administration 19

As the province closest to Hong Kong, Guangdong has the most extensive ties with the HKSAR. Since the establishment of the Cross-boundary Liaison System in 1982, the two sides have maintained close liaison to discuss and resolve issues of mutual concern, such as cross-boundary crime, the improvement to the Shenzhen River on flood prevention, the collection, treatment and discharge of sewage.

The importance of Hong Kong/Guangdong Co-operation has been greatly enhanced in recent years. With the promulgation of the 'Outline of the Plan for the Reform and Development of the Pearl River Delta' by the National Development and Reform Commission in January 2009, co-operation between Hong Kong and Guangdong was formally elevated to the national strategic level. To translate the macro policies in the outline into concrete measures, Hong Kong and Guangdong signed the Framework Agreement on Hong Kong/Guangdong Co-operation. (Framework Agreement) in the presence of State Leaders in April 2010. This is the first agenda on Hong Kong/Guangdong Co-operation ever endorsed by the State Council. The National 12th Five-Year Plan emphasises the importance of deepening Hong Kong/Guangdong Co-operation and the implementation of the Framework Agreement, and reaffirms the development positions of the two places as set out in the Framework Agreement. The implementation of initiatives under the Framework Agreement is progressing well.

At the Hong Kong/Guangdong Co-operation Joint Conference held in August. 2011, the two sides agreed to enhance the overall competitiveness of the region. through closer co-operation in various aspects, such as in formulating regional co-operation plans, co-operating in rendering financial services, in commerce and trade, building cross-boundary infrastructure, travel facilitation, education, medical services, environmental protection and tourism.

Developing Qianhai is one of the key co-operation areas under the Framework Agreement, and is listed as one of the major co-operation projects between Hong Kong and Guangdong in the National 12th Five-Year Plan. Since the State Council's approval of the Overall Development Plan on Hong Kong/Shenzhen Co-operation on Modern Service Industries in Qianhai Area in August 2010, the HKSAR Government had been maintaining close contact with the Shenzhen authorities on the study and formulation of policies relating to Qianhai's development. The HKSAR Government will continue to adopt the arrangements made under the Inter-ministries Joint Conference on the Development of Qianhai Area in Shenzhen, and other platforms to communicate with respective ministries and reflect the opinions of Hong Kong's business sectors, to assist them in capitalising on the opportunities created by the development of Qianhai, contributing to the development of the nation's service industries, and realising Qianhai's designation as a Hong Kong/Guangdong modern service industry innovation and co-operation exemplary zone.

Nansha is another key co-operation area under the Framework Agreement. To push forward the development of Nansha, the HKSAR Government and the Guangzhou Municipal People's Government signed a letter of intent in August 2011. A Hong Kong/Guangzhou Co-operation Working Group was set up to explore co-operation between the two places focusing on upgrading and transforming the