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In HK, some local scholars and leading businessmen, including Sir Y.K. Pao, David Li, Lawrence Chu, Edward Chen and Victor Sit hailed the agreement as another piece of evidence that the "one country two systems" formula is both acceptable and effective.

However, Legco member Lee Yu-tai availed himself for another chance to criticise the British authorities for their nationality policy towards the HK people.

His criticism was shared by Dr Joseph Cheng of the Chinese University.

PRESS COMMENTS

Ming Pao said that China had made concessions on the issue of nationality and had handled it in a flexible way. The paper said that as the Macau issue was part of China's reunification policy, HK people's confidence would be greatly boosted if more satisfactory results could be reached.

The HK Economic Journal agreed that China had made great concessions in allowing Macau residents to hold dual nationality. The paper said that the Portuguese Government had handled the issue in a far better way than the British. On the provision regarding the interests of the inhabitants of Portuguese descent, it said that the Portuguese Government had worked out a more specific arrangement in fulfilling its moral obligations towards Macau residents than the

British.

The HK Daily News said that both sides had not reached agreement on the nationality issue and that further discussions were needed. The paper said that the Portuguese memorandum was an indication that it wanted to prevent offsprings of Portuguese nationals living in Macau to acquire Portuguese citizenship. The paper said that the term "connection with Macau" needed further clarification. Like the British, the Portuguese Government might have to change its nationality law. In another editorial, the paper said that both sides had solved the Macau issue in a spirit of mutual understanding and accommodation.

Wah Kiu Yat Po said that people were now concerned how to draw up an elections system and how to groom locals to take up senior posts in the civil service during the transition.

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Ta Kung Pao, Ching Po and the HK Commercial Daily welcomed the agreement, saying that it was an indication that the "one country, systems" plan would work. Ta Kung said that the settlement of the Macau issue was one big step forward in China's reunification.

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