Permanento was recently awarded the Cathay Pacific China Trader Award 2000, an annual accolade which recognises enterprising small businesses entering the China market.

Dutch small and medium-sized businesses are 'doing good business in Hong Kong and China,' says Mr Haakma, apart from 'well-known Dutch multinationals in consumer goods, transport, information technology and financial services'.

The award, now in its fifth year, is organised by Cathay Pacific, the China Chamber of the Netherlands Centre for Trade Promotion (Nederlands Centrum Voor Handelsbevordering) and Hong Kong Trade Development Council.

Referring to Permanento, the jury observed that its adhesive components were 'so special that the company had to develop the machines that make those products themselves'.

Permanento began operations, just two years ago, Mr Haakma said, adding that its clients include multinationals such as Philips and 3M. 'They opened a new manufacturing plant in Shanghai, but the operational base is in Hong Kong,' he said.

Two other companies, Itraco and Filtrair were named finalists.

Itraco, a trading company, which develops many products, also makes an umbrella called 'Windy', which withstands strong gusts of wind. The umbrella is made in China.

Filtrair produces filters for motor vehicle manufacturing facilities and has joint ventures with Shanghai Dazhong (Volkswagen) and GM Shanghai (Buick).

The jury emphasised that the company, which entered a joint venture in '98 built its business relationship 'on its own', without the assistance of government agencies or embassies and trade missions.

While these became successful ventures, what these enterprises and other business ties between the Netherlands and Hong Kong illustrate, is the 'importance of the personal relationship with trading partners', Mr Haakma notes.

'Unlike in the West, we attach great importance to personal bonds and that belief aligns well with the Asian way of doing business,' he said. 'The relationship, the friendship, and the trust it leads to helps overcome difficulties and differences.'

He points out that the Dutch understand how not be overbearing and also know how to patient in forging partnerhips in Asia.

Mr Haakma's observations about the value of personal relationships are tempered with his own experiences in Asia.

He spent eight years in Jakarta, four of which as head of the Indonesian Netherlands Association (INA), the official bilateral chamber of commerce, which among other things, identifies potential business partners. For the next four years, he also served as a director at the CBI, the Centre for Promotion of Imports from Developing Countries, an agency of the Ministry of Foreign Affairs.

At the CBI, he undertook training and human resource development programmes for target groups.

As an academic who did his post- doctoral studies at Harvard, he emphasises that there is more to business than just sourcing and manufacturing, or indeed services.

Of course, the Dutch should know about business in Asia. For 200 years, the Dutch East India Trading Company, formed in 1602, ran a commercial empire in Asia.

Hua Liming, who until recently was China's ambassador to the Netherlands, writing in The Holland Economic Tri bune, notes that China-Netherlands relations can be traced back to the 17th Century. He also observes that, 'the Dutch people, just like the Chinese people, are diligent, ingenious, entrepreneurial and born to be good at business'.

While partnerships have been built, battles have been waged, too against competitors in the old days when the Dutch, under Anthony van Diemen, the governor of the Dutch East India settlements, fought off the Portuguese to occupy Ceylon (Sri Lanka) from 1658- 1796. The Portuguese were also dislodged from the Indonesian Archipelago. These and other conquests led to a monopoly on the spice trade, while also helping to create a powerful political and commercial entity in the Far East.

Apart from market information and other technical details, what makes a business relationship thrive, is when the personal rapport is complemented by an effort to understand and absorb each other's culture.

Dutch singers, authors, designers, architects, film makers, classical musicians, artists and dancers have regularly visited Hong Kong or have their works shown here, thus enriching the cultural dimension of the relationship, Mr Haakma says.

On the other hand, high-ranking emissaries open doors to greater under standing, Mr Haakma says pointing out that a visit in June last year to Amsterdam and The Hague, by Mrs Anson Chan Fang On-sang, who retired as Chief Secretary for Administration last week, 'helped to explain the one country, two systems concept', to Dutch policymakers and business people, while also 'selling Hong Kong in the Netherlands'.

Mr Haakma accompanied Mrs Chan to the Netherlands, considering the importance the visit had in dispelling any misconceptions and the need to reaffirm the stability of Hong Kong.

Acknowledging that there is 'a great deal of misunderstanding', about the Hong Kong SAR, Mrs Chan assured her hosts that there has been 'no interference from Beijing in the running of Hong Kong', and that Hong Kong maintains a separate identity in international bodies.

Similarly, Foreign Trade Minister Gerrit Ybema led a delegation to Hong Kong in November last year.

Mr Haakma says, that it took some convincing from the Hong Kong Economic and Trade Office in Brussels and from himself, 'but the fact that the minister arrived in Hong Kong first, before proceeding to China', demonstrated 'the importance the government attaches to our relationship'.

The Netherlands, Mr Haakma says, is 'the second biggest European investor in Hong Kong after the UK and the third largest overall'.

During his visit, Mr Ybema opened the new offices of the Netherlands Consulate in Cheung Kong Centre.

'Eleven policy secretaries were present on that day, even though an important yet protracted debate was taking place in Legco, and may be it was also a chance for the legislators to get away from the proceedings,' Mr Haakma said. Nevertheless, it illustrated Hong Kong's 'commitment and confidence in our relationship'.

Indeed, this confidence is reflected in major agreements and business contracts awarded to Dutch companies. Mr Haakma hastens to add that the Netherlands was the first country to sign an investment protection agreement and an air services agreement, post-1997.

Besides, the Netherlands was a strong supporter of visa-free entry to the European Union for SAR passport holders.

A Dutch dredging company, HAM, secured a HK$4 billion site formation contract for Disneyland, and the Holland Institute of Traffic Technology (HITT), signed a HK$120 million deal with the Hong Kong Port Authority to upgrade the vessel traffic and information management system, first installed in 1989. Pacific Century CyberWorks is HITT's partner in the venture.

In addition, a consortium including airport operator Schiphol Group won a HK$350 million contract to develop and manage a logistics centre at the Hong Kong International Airport for 27 years.

The consortium, Tradeport Hong Kong, includes Fraport AG (Frankfurt Airport Services Worldwide), Schiphol Group, Jardine Logistics and Hong Kong Land, as well as China National Aviation Corporation (CNAC).

Mr Haakma points out that Schiphol Group has vast experience in logistics and it has been developing 'innovative products and services that can be useful to other airports'.

He says that Schiphol, with it multiple modes of transport, is 'much more than an airport'. In fact, its AirportCity concept has attracted the attention of the Hong Kong Airport Authority, he points out.

The AirportCity formula, which is at its most advanced at Schiphol, aims to offer 24-hour services including, catering facilities, shops, information and communications technology, business units, conference rooms and recreational facilities to travellers and companies such as airlines, logistics and distribution services providers.

Secretary for Economic Services Sandra Lee, will be able to see for herself the expertise and technologies available when she visits Amsterdam next month. Mr Haakma will be accompanying her.

She will visit Rotterdam and logisics centres in the port city as well as Schiphol Airport. In addition, she will visit the port of Amsterdam, home to many distribution centres.

Rotterdam, the world' biggest port, has set up an independent corporation, Mainport Holding Rotterdam, to explore joint venture business opportunities with the private sector.

At this time of the year, the Keukenhof Gardens are in full bloom and surely, Hong Kong and the Netherlands will hope that business will blossom for years to come.