The implementation of Closer Economic Partnership Arrangement (CEPA) has brought immediate benefit to Hong Kong's economy, and more benefits of CEPA are expected to come, said Hong Kong Special Administrative Region Chief Executive Tung Chee Hwa Wednesday.

Delivering the policy address for 2005 at the Legislative Council, Tung said that introduced only by a year ago, CEPA has helped foster economic growth in Hong Kong.

Over 660 Hong Kong-registered enterprises have been issued Certificates of Hong Kong Service Supplier. By the end of 2004, products with a total value of about 1.15 trillion Hong Kong dollars (147 billion US dollars) were manufactured in Hong Kong and imported into the mainland tariff free.

"We have started to consult the industries concerned on the contents of CEPA III, to be implemented next year, and will begin discussions with the Central Authorities," said Tung.

He said that in addition to implementing and furthering CEPA, the government will continue to promote cooperation between Hong Kong and Guangdong.

At the same time, Hong Kong will actively participate in the development of the Pan-Pearl River Delta and foster bilateral cooperation with other mainland provinces and cities, Tung said.

Through concerted efforts, Hong Kong and Guangdong have entered a new stage of cooperation. The scope of cooperation has expanded beyond trade and boundary-crossing facilities to many areas, including logistics, tourism, regional planning, technology, intellectual property rights, education, transportation, environmental protection, health, culture and sports, he said.

Of particular significance is the Hong Kong-Zhuhai-Macao Bridge which is the biggest cross-boundary infrastructural project since the return of Hong Kong to the motherland. It has undergone a feasibility study, and will soon be registered for the next stage of work to start, Tung said.

He also mentioned that Hong Kong should seize the opportunities arising from the "going global" strategy for mainland enterprises."To attract more mainland enterprises to Hong Kong, we will help them raise capital, establish international trading networks and gain quick access to the international market."

As at mid-2004, the number of mainland enterprises with regional headquarters in Hong Kong was 20 percent higher than in the previous year, he added.

"We will do our best to attract more mainland enterprises, large and small, to come to Hong Kong," Tung added.