Zhejiang Provincial Govt to set up office in Perth

13/5/93

The Zhejiang Provincial Government will establish an office in Perth following an agreement signed by Deputy Premier and Minister for Commerce and Trade Hendy Cowan in Hangzhou today.

The agreement, co-signed by Zhejiang Vice-Governor Long Anding, represents a major development in the 'Sister-State' relationship between Western Australia and Zhejiang, an eastern coastal province of China.

The trade-related office will be staffed by two representatives from Zhejiang Province in the second half of this year.

While the emphasis will be on trade, the office will strengthen educational and cultural bonds which have developed since the establishment of 'Sister-State' relations in November 1987.

The officers will be the first full-time staff from Zhejiang to be located in Western Australia.

The office will allow direct contacts to be made between Government representatives and businesses interested in investing in the Chinese province.

Chinese companies wanting to invest in WA will have ready access to WA contacts.

Office space will be provided within the Department of Commerce and Trade and the officials will have the use of telecommunications worth up to $12,000 in the first year.

The Zhejiang Provincial Government has agreed to provide the same level of support should the WA Government decide to establish a representative office in the Chinese province.

The memorandum of understanding signed today said both parties saw the economic and trade needs of Zhejiang and WA as complementary and the potential for co-operation was great.

It said both sides should strengthen contacts between their business people and conduct exchanges and co-operation in areas such as iron ore, wool, leather, science, technology and personnel training.

Mr Cowan said Zhejiang Province had experienced very high economic growth rates in recent years and there was a great potential for WA businesses to become involved in a mutually beneficial way.

"As well as being able to provide an assured supply of raw materials such as iron ore and wool, there are good prospects for WA businesses to become involved in early-stage processing of those and other commodities," he said.

"That will add value to our commodities.  It will also raise the quality of the finished product, which in turn should boost demand for those commodities.

"In other words, closer co-operation will allow a more integrated approach to industry, rather than WA being simply a source of raw materials for Chinese processors.

"There is much scope for joint venture investments which allow WA and Chinese businesses to share in the profits of such undertakings."

The chief executive officer of the Department of Commerce and Trade, Mr Bruce Sutherland, who is also in Hangzhou, said China offered great growth opportunities for WA.

He said Australia's trade with China had more than doubled in the past 10 years and future growth sectors of Zhejiang's economy fitted well with WA.

While in Zhejiang Province, the WA delegation has had extensive briefings and exchanges on economic issues.

The delegation was officially welcomed to Zhejiang by the Vice-Governor at an official banquet on Wednesday night.

Mr Cowan has extended an invitation for a leader of the Zhejiang Provincial Peoples' Government to visit WA later this year.

The delegation will tomorrow travel to Shanghai, where they will meet shipping, textile and steel industry officials.

Media contact: John McNamara  222 9595