(c)
- 2 -
We also welcome Mr Lu's statement that the less change in the civil service, the better. But it is important to be clear about the appointment of the 20 or so principal officials. Mr Lu said that the role of the Central People's Government in this would be substantial and not symbolic. It is of course the constitutional position that whilst the formal appointment of these principal officials would be made by Peking, the choice would be made by the Chief Executive in Hong Kong. This is the clear meaning of the Joint Declaration and it was explicitly agreed between the two sides in the negotiation of that document. The community would be reassured to have a re-confirmation of this position from Director Lu during his visit this week.
"One point which Director Lu Ping did not mention in his speech was the question of the financial support agreements for the airport. He has, however, commented separately to the press that the British side has raised side issues and additional demands. This is not so. The position has not changed since last month when the Director said that he expected the question of the financial support agreements to be resolved 'within days'. The delay in signing these agreements has become a matter of considerable concern to the community, particularly the business sector. Hong Kong people would like to know the specific issue which is holding up Chinese agreement and when they expect the issue to be resolved. The agreements need to be concluded very soon, so that the MTRC and the Provisional Airport Authority can raise funds in the financial market to enable the Airport Core Programme to maintain its momentum. A green light on this issue from Director Lu would be a very welcome signal to the community."
End/Thursday, May 18, 1995