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MDLIAN 5102

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THE CHINESE SIDE WOULD ASK THE BRITISH SIDE TO SHELVE THE CONTROVERSIAL NEW POLICY TO ALLOW EXPATRIATE CIVIL SERVANTS TO CHANGE TO LOCAL TERMS. THE BRITISH SIDE SHOULD DISCUSS WITH THE CHINESE SIDE THROUGH THE JLG ON LONG-TERM ARRANGEMENTS FOR EXPATRIATE CIVIL SERVANTS FIRST. SOURCES WERE QUOTED AS SAYING THE CHINESE SIDE DID NOT COMPLETELY RULE OUT THE RIGHTS OF EXPATRIATES SWITCHING TO LOCAL TERMS. THE CHINESE SIDE CONSIDERED LONG-SERVING EXPATRIATE CIVIL SERVANTS WITH A CERTAIN LEVEL OF PROFICIENCY IN CHINESE COULD APPLY TO CHANGE TO LOCAL TERMS. BUT BEFORE ALLOWING THIS TO HAPPEN, THE TWO SIDES SHOULD DISCUSS THE DEFINITION OF 'PERMANENT RESIDENT' AS STIPULATED IN THE BL. THE EXPATRIATE CIVIL SERVANTS SHOULD MEET THE REQUIREMENT OF PERMANENT RESIDENT' BEFORE

THEY COULD CHANGE TO LOCAL TERMS.

26. THE CHINESE JLG TEAM LEADER, GUO FENGMIN, WAS QUOTED AS SAYING (2.9) THE ISSUE OF ALLOWING EXPATRIATE CIVIL SERVANTS TO CHANGE TO LOCAL TERMS WOULD BE DISCUSSED IN THE NEXT JLG MEETINGS. NCNA VICE

DIRECTOR ZHENG GUOXIONG SAID AT A PUBLIC FUNCTION THAT THE CHINESE ALWAYS HELD THE VIEW THERE SHOULD BE STABILITY IN MAJOR ISSUES AFFECTING THE TRANSITION IN PARTICULAR THE CIVIL SERVICE SYSTEM, AND THAT THERE SHOULD BE DISCUSSION BETWEEN CHINA AND BRITAIN OVER

THESE MATTERS.

HKSAR PASSPORTS

27. MING PAO QUOTED CHINESE SOURCES AS SAYING (2.9) THE CHINESE SIDE WOULD NOT ALLOW THE BRITISH TO INTERFERE IN THE ARRANGEMENTS FOR THE SAR PASSPORT. THE SOURCES SAID THE CHINESE GOVERNMENT WOULD TAKE UP THE RESPONSIBILITY OF SETTING OUT THE CONDITIONS AND PROCEDURES OF APPLICATION AND DESIGN OF THE PASSPORT. IT WOULD ALSO TAKE UP THE TASK OF PROMOTING THE PASSPORT TO FOREIGN COUNTRIES. A WORKING GROUP UNDER THE HKMAO WAS LOOKING INTO THE MATTER.

28. LU PING WAS QUOTED AS SAYING (4.9) THE CHINESE SIDE HAD NOT YET DISCUSSED WITH THE HKG DETAILS OF ISSUING SAR PASSPORTS. HOWEVER, CHINA WOULD LOBBY OTHER GOVERNMENTS TO WAIVE VISA REQUIREMENTS FOR SAR PASSPORT HOLDERS.

NOTE-ISSUING BANKS

29. LU PING WAS QUOTED AS SAYING (4.9) JD AND BL PROVIDED NOTE-

ISSUING BANKS IN HK COULD CONTINUE TO ISSUE NOTES AFTER 1997. THEREFORE THE QUESTION OF DISCUSSING THE TERMINATION OF NOTE ISSUING RIGHTS OF THE HK BANK AND THE STANDARD CHARTERED BANK DID

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