An Min, vice-minister of foreign trade and economic co-operation (MOFTEC), and Hong Kong's Financial Secretary Antony Leung will take charge of the work.

"The talks will cover barter trade, service trade and investment facilitation," An said following an hour-and-a-half conversation with Leung yesterday.

He refused to elaborate, saying details have yet to be negotiated by the two sides.

He emphasized closer trade ties are mutually beneficial to the mainland and Hong Kong.

Leung called his meeting with An "open, cordial and friendly."

He said the two sides agreed to work hard together to push forward the project.

"We will start with easy issues and go on to harder ones," said Leung. "We will forge ahead step by step."

An and Leung noted the mainland and Hong Kong will strictly abide by World Trade Organization rules and the principle of "one country, two systems" in talks on closer trade ties.

The two sides agreed to have a second dialogue in Hong Kong in March.

The scheme was proposed to the central government last December by Chief Executive of the Hong Kong Special Administrative Region Tung Chee-hwa and is widely seen as an attempt to resuscitate the slumping Hong Kong economy.

( China Daily January 26, 2002)