[Although it has not proved possible to reach agreement in these

It is

talks we remain ready to continue discussions with the Chinese

side in an effort to narrow our differences. We are fully

committed to cooperation with China on Hong Kong and to

fulfilling our obligations under the Joint Declaration.

common sense that this is the best way to promote the

prosperity and stability of Hong Kong and to secure a smooth

transition. We look to the Chinese side to work with us to

achieve this. In particular we look forward to early agreement

on financing arrangements for the new airport and on Hong Kong's ninth container terminal. There is also a long agenda

of issues in the Joint Liaison Group which need to be dealt

with if continuity in legal and technical areas is to be

achieved. We shall continue to work for cooperation with China

to achieve full implementation of the Joint Declaration. That

is in the best interests of a successful Hong Kong after 1997.

5

statememt26.8/BRIEFS/NJH

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