The Chief Executive requested the EC to conduct a comprehensive review of the whole education system in Hong Kong in 1997. With its advisory role and as the buffer between the Government and the institutions, the UGC participated in the review exercise by maintaining an active dialogue with the EC on various issues relating to higher education. The EC Chairman attended UGC meetings on a regular basis during the reporting triennium, to brief and exchange views with the UGC on the EC's thinking relevant to the higher education. The UGC Chairman and the Secretary-General also sat on the EC and contributed to discussions on issues relating to higher education.

EC submitted the final report to the Chief Executive in September 2000.

The UGC continued to contribute to the reform in the second stage through the participation of the Chairman and the Secretary-General in the relevant sub-groups under the EC.