Under the agreement, tours will be organised for Hong Kong businesspeople to explore opportunities in eastern Guangdong.

A major investment study tour is also planned by 150 senior executives from Guangdong later this month to explore business opportunities in Hong Kong.

New ferry services for transit passengers between Lianhuashan Port in Panyu and Hong Kong International Airport will also be launched, increasing the number of routes between the airport and mainland ports to four.

To improve air quality, a regional monitoring network will be introduced by the end of the year.

Both sides are also exploring ways to jointly prevent air pollution caused by motor vehicle emissions in the region.

A civil service exchange programme will also be introduced next year for second grade civil servants.

To fulfil the needs of Hong Kong children living on the mainland, the governments have begun discussions on the possibility of school-sponsoring bodies from Hong Kong setting up Hong Kong-curriculum schools in Shenzhen.

A 15-member team, including language teachers and researchers from Guangdong, will embark on a one-year co-operative teaching and research project.

Three more taskforces will be set up in addition to the existing 15, to cover key areas of co-operation.

These include teams to promote regional co-operation in the Pearl River Delta, to exchange town planning and development ideas, and to explore new civil service exchanges.

Speaking after the conference, Guangdong Governor Huang Huahua hailed the co-operation between the two sides as a 'win-win' situation. 'Guangdong and Hong Kong are closely related and mutually dependent; the current economic development in Guangdong is the result of the inseparable support from Hong Kong,' he said.

With the opening of the Guangzhou Baiyun Airport today, Chief Executive Tung Chee-hwa said air restrictions with other regions may have to be further relaxed to maintain Hong Kong's transport advantage and 'boost our competitiveness in the long run'.