The so-called 'three links' between Taiwan and the mainland would initially have a harmful effect on Hong Kong but bring benefits in the long run, an economic consultant to Taipei said yesterday. Kan Chak-yuen said if direct trade, postal and transport links were established, volumes conducted through Hong Kong would drop by 5 per cent a year. At present, the indirect links between the cross-strait rivals account for 6 to 8 per cent of Hong Kong's total trade volume. There would also be fewer Taiwanese visitors to Hong Kong and some Taiwanese investment would be lost, Mr Kan told a General Chamber of Commerce seminar. 'The most affected sectors would be trade-related industries like logistics, transport, insurance and trade agencies,' he said. But long-term economic development in the Greater China area would bring benefits to Hong Kong as the whole economic scale would be increased. Hong Kong's financial services industries, such as banking, accounting and legal services, would gain because of their transparency and high quality.