The Hong Kong Special Administrative Region (HKSAR) Chief Executive Donald Tsang said on Wednesday Hong Kong will actively pursue economic, cultural, social and other exchanges with Taiwan, in response to the latest development in cross-Straits relations.

Hong Kong will pursue the exchanges with Taiwan in accordance with the Basic Law and the seven principles proposed by former Vice Premier Qian Qichen, Tsang said in his annual policy address.

Tsang said the HKSAR will adopt several strategies for developing its relations with Taiwan, including establishing a cooperation framework.

Apart from initiating the work of bilateral business cooperation committees, the HKSAR authority will establish a Hong Kong-Taiwan Economic and Cultural Cooperation and Promotion Council to promote multi-faceted, multi-level exchanges, Tsang said.

"We will consider setting up a multi-functional office in Taiwan at an appropriate time and in an appropriate format to enhance high-level exchanges between the two places," he added.

The HKSAR government will also foster economic cooperation with Taiwan with a focus on trade and services, Tsang said. It will commence discussions with Taiwan on avoiding double taxation.

Tsang also said that Hong Kong would seek to enable its travel agents to operate in the Chinese mainlanders' tours to Taiwan, and further develop cross-Straits multi-destination tourism products, including air and cruise packages.

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