TUESDAY, APRIL 9, 1991

MR MURD: THAT WILL DEPEND ON THE PROJECT. WHAT WE HAVE SAID POLITICALLY UNDER THE JOINT DECLARATION IS THAT WE ARK WILLING TO CONSULT ON MAJOR MATTERS WHICH STRADDLE 1997 AND I AM GLAD THE QUESTIONING EARLIER BROUGHT OUT WHAT THE MEANING OF CONSULT IS. THAT DOES NOT IMPAIR THE EFFECTIVE AUTHORITY OF THE HONG KONG GOVERNMENT. ECONOMIC FACTS, AS THIS DISCUSSION HAS ILLUSTRATED, ARE A DIFFERENT MATTER. BUT THEY CAN'T BE. YOU KNOW, THEY CAN'T BE IGNORED OR FUDGED OR REGARDED AS A POLITICAL DECISION, THEY ARE ECONOMIC FACTS.

PETER MAIZE (TVB) A CHINESE OFFICIAL THIS MORNING TOOK THE ISSUE OF INTERFERING IN INTERNAL AFFAIRS TO A NEW LEVEL BY SAYING THAT HONG KONG WAS INTERFERING IN THE INTERNAL AFFAIRS OF THE S.A.R. WHICH DOES NOT EXIST YET BECAUSE THE BRITISH GOVERNMENT 19 WITHHOLDING INFORMATION, FINANCIAL INFORMATION, DURING THE DISCUSSIONS. THIS CAME FROM A DEPUTY DIRECTOR OF THE HONG KONG AND MACAU AFFAIRS OFFICE. IS THAT TRUE THAT BRITAIN HAS NOT, AND THE HONG KONG NEGOTIATORS HAVE NOT GIVEN THE CHINESE SIDE ALL OF THE FINANCIAL INFORMATION THAT THEY ARE ASKING FOR?

MR HURD: NO SUCH COMPLAINT WAS MADE TO ME IN ANY OF THE MEETINGS I HAD. IT'S A COMPLAINT WHICH I THINK WAS QUITE FAMILIAR SOME TIME AGO BUT I CERTAINLY HAVE RECEIVED NO IMPRESSION

IN PEKING THAT THE CHINESE WERE COMPLAINING OF LACK OF INFORMATION ABOUT THE AIRPORT PROJECT.

CLAUDIA MO (AFP): YOUR CHINESE COUNTERPART, QIAN QICHEN SAID IN PEKING YESTERDAY THAT IN HIS VIEW, THIS AIRPORT BUSINESS SHOULD BE SETTLED IN THE NEAR FUTURE. DO YOU SHARE THIS OPTIMISM?

MR HURD: WELL, HE SAID, I THINK, HE HOPED IT WOULD BE AND I HOPE IT WOULD BE. I AM NOT IN THE BUSINESS OF MAKING PROPHECIES.

CLAUDIA MO (AFP): DID YOU HAVE TO SCALE DOWN THE PROJECT IN ANY WAY TO PLEASE THE CHINESE?

MR HURD: CHINESE DID NOT PRESS ME TO SCALE DOWN THE PROJECT. THEY SAID THE SIZE OF THE PROJECT WAS THE RESPONSIBILITY OF THE HONG KONG GOVERNMENT. THEIR CONCERN IS WHETHER THAT' WOULD LEAVE THE FINANCIAL STABILITY OF HONG KONG, AT THE MOMENT WHEN SOVEREIGNTY PASSES TO CHINA, AND RESPONSIBILITY FOR FINANCES PASSES TO THE S.A.R. WHICH IS NOT YET IN EXISTENCE. THIS WAS THE POINT THAT THEY CONTINUOUSLY RETURNED TO AND WHICH I THINK PREMIER LI PENG RETURNED TO A SHORT TIME AGO IN HIS PRESS CONFERENCE.

STEVE DOUGHERTY (DAILY MAIL): I'D LIKE TO KNOW HOW LONG THIS STALEMATE CAN CONTINUE YOU THINK BEFORE IT BEGINS TO HAVE A SERIOUS EFFECT ON CONFIDENCE IN THE FUTURE OF HONG KONG ? TO KNOW IF BRITAIN CAN BRING ANY SANCTIONS TO BEAR ENCOURAGE AGREEMENT.

AND I'D ALSO LIKE ON CHINA TO TRY AND

/MR HURD

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