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Drive for peace finds willing host

As home to the largest number of diplomatic missions in the world, Brussels is something of a global capital. Apart from being the capital of Belgium, the city is the main centre of the European Union.

The European Commission and the EU Council of Ministers are based here, and the European Parliament meets regularly for working sessions. It is also the headquarters of many international institutions, including Nato, of business multinationals, and non-governmental organisations.

The political and economic integration of Europe is probably the most important peace project of the last 50 years. What started with a handful of members is transforming into one of the fastest-growing trade blocs. The bloc is expected to enlarge by 67 per cent with the addition of 10 new member states, which should be given the green light for accession at the European Council meeting in Copenhagen next month.

If all goes according to plan, Poland, Slovakia, Slovenia, Cyprus, Malta, Hungary and the Baltic states could receive full EU membership by 2004.

'Belgium is committed to a strong and united Europe,' says Belgium's Consul-General to Hong Kong, Philippe Jottard. 'We are pleased that the green light will finally be given to the accession of 10 states.'

Mr Jottard says the addition will help create a more united Europe, fostering greater social and economic integration, particularly among the former socialist Eastern bloc.

'It will enlarge the EU eastward. For us it is a matter of fulfilling a historical duty. We are very happy to welcome fellow Europeans and I think the accession will benefit both existing members and the newcomers.'

He added that the growing trade bloc could be a powerful force for peace.

'It is to be viewed not only in commercial terms, but also in political terms. It will contribute greatly to the stabilisation of Europe. So one can say that, since the inception of European integration more than 50 years ago, it has been a fantastic platform for peace within Europe.'

Several of the soon-to-be EU members are Nato members, including Poland, Hungary and the Czech Republic.

Mr Jottard speaks with considerable experience. The career civil servant entered the Belgian foreign service with a posting as secretary to the embassy of Belgium in Colombia. Later postings would include Belgian ambassador to Bolivia and Syria. He arrived in Hong Kong two years ago, and he now looks forward to the increased opportunities for Belgian companies flowing from mainland membership of the World Trade Organisation.

One of the hurdles facing the diplomat is working out a tax treaty with the Hong Kong government. Present rules require Belgian corporations operating overseas to pay tax in two jurisdictions, otherwise known as double taxation.

Relations between Belgium and Hong Kong progressed last year with an exchange of bilateral visits and the progress towards new bilateral trade agreements. Belgium ranks as the fifth-largest EU country (out of 15 present members) exporting to Hong Kong.

In terms of Asian trade, Hong Kong is Belgium's third-largest trading partner, behind India and Japan.

Mr Jottard, however, concedes that much of the trade volume booked through Hong Kong is destined for the mainland.

Today Belgians will gather to celebrate King's Day or Dynasty Day, a national holiday to honour the reigning royal family, Prince Philippe and his wife, Princess Mathilde.

Mr Jottard says that in Hong Kong's concentrated banking climate it is common to see the influence of Belgium's mighty financial industry.

Belgian-Dutch group Fortis Bank ranks among the big financial institutions. Another is KBC Bank, the largest foreign investor in banking in Eastern Europe.

Yet another is Euroclear Bank, the Brussels-based clearing, settlement and custody service provider.

Dredging International NV is also making its mark on the local waterfront. The company serviced the Chek Lap Kok airport project and is reclaiming land in Penny's Bay as part of the Disney project.

The size of the Belgian community in Hong Kong is about 700. This ranks as the largest Belgian community in East Asia. Aside from financial services the dynamic business community includes insurance services, asset management businesses, shipping, and consumer products companies.

Brewery giant Interbrew announced this month it would take a 70 per cent stake in the brewery operations of China's KK Group. The US$42 million deal gives Interbrew, the world's third-largest beer producer, with Becks and Stella Artois brands, a foothold in the world's second-largest and fastest-growing beer market.

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