ENG-2017 — Page 59

1

Constitution and Administration

Working Relationship with Mainland Authorities

The Constitutional and Mainland Affairs Bureau coordinates contacts between the HKSAR Government and the Mainland authorities, promotes regional cooperation initiatives between Hong Kong and the Mainland, and oversees the operation of the HKSAR Government's Mainland offices.

The Hong Kong and Macao Affairs Office of the State Council facilitates the HKSAR Government's development of contacts with the Mainland authorities, and liaises closely with the HKSAR Government on matters of mutual concern and on arrangements for official visits. between Hong Kong and the Mainland.

Cooperation with Mainland Provinces and Municipalities

The HKSAR Government is committed to strengthening regional cooperation with the Mainland, improving cooperation at the government-to-government (G2G) level, and leveraging Hong Kong's advantages of 'one country, two systems' and the strengths of its industries, thereby helping Mainland provinces and municipalities to enhance their level of opening up in terms of economic development, as well as expanding Hong Kong's scope for further development to achieve mutual benefit. Hong Kong has deepened regional cooperation through its existing cooperation mechanisms with the Pan-Pearl River Delta (PPRD) region, Guangdong, Beijing, Shanghai, Fujian and Shenzhen, and is liaising with Sichuan on establishing a cooperation mechanism.

Witnessed by President Xi Jinping, the National Development and Reform Commission (NDRC) and the governments of Guangdong, Hong Kong and Macao signed the Framework Agreement on Deepening Guangdong-Hong Kong-Macao Cooperation in the Development of the Bay Area in Hong Kong on 1 July 2017. The HKSAR Government has been working closely with the Guangdong government and the Macao Special Administrative Region Government in drawing up the Development Plan for the Guangdong-Hong Kong-Macao Bay Area jointly with the NDRC. The HKSAR Government has also consulted various sectors and advisory bodies on the development plan and has fully reflected the views received to the NDRC.

At the 20th Plenary of the Hong Kong/Guangdong Cooperation Joint Conference in November, the two sides reviewed the progress of their collaboration over the past year and set directions. for future cooperation. Both sides agreed that Hong Kong-Guangdong cooperation would focus on taking forward the development of the bay area together; taking forward policy innovation and breakthroughs in key areas; and fostering the free flow of people, goods, capital and information within the bay area, and that the main direction of future development would be in technological innovation, in order to build up the bay area as a world-class base for innovation in the technological industries.

Qianhai, Nansha and Hengqin are major platforms for promoting cooperation among Hong Kong, Guangdong and Macao. The HKSAR Government has been keeping close contact with Mainland authorities to plan and develop these three areas. Over the past years, the three areas have adopted a number of policies and measures offering favourable treatment to Hong Kong people and enterprises, such as introducing a 15 per cent enterprise tax for eligible companies in Qianhai and Hengqin; extending pilot areas from Qianhai, Nansha and Hengqin to the entire

19