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Governor: I think that if people are continuing to be anxious until July 1, 1997, it would be very bad for Hong Kong, and very bad for confidence in the future. I am sure that Mr Chen's words didn't mean to say that reassurance shouldn't be given before July 1, 1997. I think that he was perhaps camped in the no man's land between talking about agreements and talking about understandings. I repeat what we want to have is the maximum reassurance for people in Hong Kong. That's what we in the Hong Kong Government are striving to achieve so that people aren't worried about whether they can be residents after 1997 and people aren't worried about how they or their families will acquire and hold on to the right of abode. I don't think that Mr Chen Zuo'er would want to increase anxieties on those points. I am sure that on reflections, he probably slightly rephrase what he said.

Question: The Chinese and British sides are going to meet shortly about the discussion of setting up the Court of Final Appeal, what are your expectation of that?

Governor: I very much hope that since we're unclear at the moment what it is that's holding things up on the Chinese side, I very much hope that at the meeting of experts this week we'll manage to clear up any doubts there may be and answer any remaining questions which Chinese officials have. It's now almost a year since we gave the Chinese side the Bill which faithfully implements the agreement reached in 1991. I think you would have noticed from the public remarks that have been made that no one at all has suggested that there are some specific ways in which the draft Bill doesn't implement the agreement. If there are ways, I hope that the Chinese side will say what they are and then we'll be able to deal with them. So if there aren't any respects in which the Bill doesn't implement the agreement, what's the problem ? It's for Chinese officials to tell us.

They know that businessmen after businessmen, say to Chinese officials in China and out of China that one of the issues which is crucial to Hong Kong's confidence is establishing the Court of Final Appeal and preventing any sort of legal vacuum in 1997. They know that they get that message not only from the local businessmen but from businessmen from other communities. They know they also get that message from international statesmen like Sir Leon Brittan who was speaking about it in Peking the other day. So it's not just the Governor of Hong Kong or the Chief Secretary of the Government of Hong Kong who is making the point. It's being made by almost everybody who speaks to Chinese officials. I don't think there is any reason why we should have an argument or row about this. I think that it's in the interest of Hong Kong and in the interest of the prosperity of Hong Kong that we deal with it as rapidly as possibly.

Question: But how confident are you that the Bill can be tabled in LegCo next month?

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