TAIPEI - Hong Kong Financial Secretary John Tsang Chun-wah said Tuesday that Hong Kong and Taiwan are currently negotiating cooperation agreements on insurance regulation and arbitration.

Tsang is in Taipei to participate in the third joint meeting between the Hong Kong-Taiwan Economic and Cultural Cooperation and Promotion Council and the Taiwan-Hong Kong Economic and Cultural Cooperation Council. The meeting was held on Tuesday afternoon.

He said the two councils are currently negotiating two memorandums of understanding on insurance regulation and arbitration, respectively.

The official said that Hong Kong and Taiwan could strengthen cooperation and work together with the Chinese mainland to build an ?"economic iron triangle."

Tsang, honorary chairman of the ECCPC, noted that Hong Kong and Taiwan successfully inked a memorandum of understanding on cooperation in the banking industry through negotiations between the ECCPC and the THEC in August.

He expressed the hope that the two sides could conclude the two deals on insurance regulation and arbitration as soon as possible in order to enhance overall bilateral cooperation.

Tsang also called on Taiwanese authorities to ink a comprehensive economic and trade framework agreement with Hong Kong, as called for by the island's businesses, to upgrade economic and trade relations between Hong Kong and Taiwan and to boost business confidence.

Kao Charng, Taiwan's deputy chief for mainland affairs, said cooperation between Taiwan and Hong Kong has been smooth and fruitful in the last couple of years, winning praise from all sides.

He expressed the hope that Taiwan and Hong Kong would have more exchanges on investment cooperation, consumer protection, environment and cultural relics, economy, trade, media and judiciary affairs.

Tsang arrived in Taipei on Monday afternoon and will leave for Hong Kong on Wednesday.