Since reunification, the HKSAR Government has made significant progress in developing and maintaining a cordial working relationship with the CPG and other Mainland authorities. Through a wide range of exchanges, including visits, meetings, seminars and training programmes, various bureaux and departments of the HKSAR Government have enhanced mutual understanding with their Mainland counterparts. Some have also made arrangements to underline the commitment of both sides to cooperate in such areas as postal services, marine conservation and the fight against intellectual property piracy.

The Hong Kong and Macao Affairs Office (HKMAO) of the State Council plays the role of a facilitator and provides assistance to the HKSAR Government in developing official contacts with Mainland authorities. Liaison with the HKMAO is also maintained on arrangements of visits by HKSAR Government officials and on other matters of mutural concern.

Article 22 of the Basic Law provides that no department of the CPG and no province, autonomous region, or municipality may interfere in the affairs which the HKSAR administers on its own in accordance with the Basic Law. The HKMAO continues to play the role of a 'gate-keeper' to ensure that the Mainland authorities at all levels conduct business with the HKSAR in line with this principle.

As the closest Mainland province, Guangdong has probably the most extensive network of communication with the HKSAR. For 23 years, the Cross-boundary Liaison System has provided an effective mechanism for Hong Kong and Guangdong to discuss and resolve practical issues of mutual concern, including the fight against cross-boundary crime and the regulation of the Shenzhen River. Cooperation with Guangdong was further strengthened with the establishment of the Hong Kong/Guangdong Cooperation Joint Conference (Joint Conference) in March 1998. It provides a high-level forum to explore and coordinate major initiatives in cooperation between Hong Kong and Guangdong. On August 4, the Seventh Plenary meeting of the Joint Conference was held under the co-chairmanship of the Chief Executive of the HKSAR and the Governor of Guangdong. The two sides reached agreements on many fronts, such as capitalising on the opportunities brought about by the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) to expedite cooperation in commerce and trade, as well as enhancing cooperation in control point operation, infrastructure, tourism, innovation and technology, education and environmental protection. The two sides also agreed to set up three new expert groups respectively on promoting Pan-Pearl River Delta cooperation, town planning and development, and civil service exchange, thus increasing the number of expert groups to a total of 17. Alongside the 17 expert groups, the Hong Kong Guangdong Strategic Development Research Group continues to conduct research into subjects which have a significant bearing on Hong Kong/Guangdong cooperation while the Greater Pearl River Delta Business Council provides a forum for Hong Kong and Guangdong enterprise, trade and business associations to discuss ideas to enhance economic cooperation between the two places. To facilitate the implementation of CEPA and expedite the implementation of cooperation initiatives in relation to Hong Kong and Shenzhen made under the framework of Hong Kong/Guangdong cooperation, the Chief Secretary for Administration and the Mayor of Shenzhen signed a Memorandum of Closer Cooperation between Hong Kong and Shenzhen on June 17. The two sides also signed eight cooperation agreements covering legal services, industry and trade, investment promotion, economic and trade exchange, tourism and technology.

The HKSAR Government and the CPG set up the Mainland/HKSAR Conference on the Coordination of Major Infrastructure Projects in January 2002 (Coordination Conference). The Coordination Conference is co-chaired by the Chief Secretary for Administration and the Vice-Chairman of the National Development and Reform Commission to enhance coordination and cooperation between the Mainland and the HKSAR in transport and major infrastructure projects. Studies on the Guangzhou-Shenzhen-Hong Kong Express Rail Link, logistics cooperation and the Hong Kong-Zhuhai-Macao Bridge are in progress.

On June 1, the HKSAR Government, with the governments of eight Mainland provinces and an autonomous region, including Fujian, Jiangxi, Hunan, Guangdong, Guangxi, Hainan, Sichuan, Guizhou and Yunan, as well as the Macao Special Administrative Region Government (the '9+2' governments), held the opening ceremony of the first 'Pan-Pearl River Delta (Pan-PRD) Regional Cooperation and Development Forum' in Hong Kong. The Forum continued in Macao the following day and the closing ceremony was held in Guangzhou on June 3, at which the '9+2' governments signed the 'Pan-PRD Regional Cooperation Framework Agreement'. Under the Framework Agreement, the '9+2' governments have agreed to strengthen cooperation in ten areas — infrastructure, investment, business and trade, tourism, agriculture, labour, education and culture, information and technology, environmental protection, and health and prevention of infectious disease.

The Hong Kong/Shanghai Economic and Trade Cooperation Conference was established in October 2003 by the HKSAR Government and the Shanghai Municipal Government to foster closer economic and trade ties between the two places, particularly to leverage on opportunities brought about by CEPA. The two sides agreed to strengthen cooperation on eight areas, including cooperation in airport management; port and logistics; Shanghai Expo 2010; tourism, convention and exhibition industry; investment and trade; professional personnel exchanges; financial services; education, health and sports. The two sides have maintained close liaison to follow up on implementation of these cooperation initiatives.

The HKSARG and the Beijing Municipal Government held a high-level meeting cum the First Plenary of the Hong Kong/Beijing Economic and Trade Cooperation Conference in Hong Kong on September 2. The Chief Executive, Mr Tung Chee Hwa, and the Party Secretary of Beijing, Mr Liu Qi, presided over the meeting to discuss the setting up of a cooperation mechanism and the establishment of the cooperation conference. The two sides also agreed to strengthen cooperation in seven aspects, including economic and trade, professional exchanges, education, culture, tourism, environmental protection and Olympics economy.