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We'll be, early in the New Year, publishing a document which will consider the various options for stage two and the community and PRC officials will have to weigh on the one hand environmental benefit and on the other hand cost. They'll have to consider the advice of experts, some of whom think that long-sea outfalls are a perfectly sensible environmental option when you're discharging to deep water.

I guess that it's a fair point to make that if Chinese officials conclude that Hong Kong should bear the costs of more expensive treatment of secondary or tertiary treatment they would also conclude that the same should apply to Shanghai and other coastal cities in the PRC, because if the objection is an environmental one that long- sea outfalls into one's coastal waters don't make good sense then that doesn't just apply in Hong Kong but it applies in other places as well. It has very considerable cost implications, as the United States is finding at the moment, as Europe has found, but nevertheless that's a perfectly valid option for people to consider.

So a simple answer to the Honourable Member's question is we're implementing rather than arguing where we have the direct responsibility to do so but we are also engaged in an open-minded consideration of the best options for stage two which the community and PRC officials and this Council will, I know, take an active part in.

Rev Fung Chi-wood (through interpreter): Mr President, I can't see any explanation by the Governor on the question of politicisation of this issue. Now we are talking about options and whether the plans are feasible. So why is it that you are saying that people have politicised the issue, who has politicised the issue?

Governor: I got the impression with one or two things that were said about stage one that some people believed that holding up stage one would provide leverage more generally in discussions with the Hong Kong Government, but maybe I was wrong to get that impression. It was certainly the impression that one might have got if one had read statements and leading articles and commentaries in some of the, I don't know whether one is still allowed to use this expression, left wing newspapers in Hong Kong.

Mr Simon Ip: Mr Chairman, I would like to ask a question about the Court of Final Appeal. A suggestion has been made that if and when the Court of Final Appeal Bill is presented to this Council one amendment will be moved to delete reference to the 4:1 composition of the Court and substitute a provision following the wording of Article 82 of the Basic Law so that the Court of Final Appeal would have complete flexibility to invite overseas judges as may be required. If such an amendment is passed, what would the Hong Kong Government do and how will it set up the Court of Final Appeal in accordance with the amendment? Thank you.

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