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Governor: There's over-crowding here of about 13 per cent which we think is at the moment manageable. There is a bigger problem with the over-crowding of facilities for young women and that's why we've got proposals to open a new treatment centre for young women. I think that's where the problem is most acute and where we've got to give priority.

Question: Mr Patten, how would you co-operate with the preparatory working committee which is going to be established next year. Would you set any guidelines for the civil servants to follow?

Governor: I've said on a number of previous outings such as this and in individual interviews that we want to have discussions with Chinese officials about the ways in which we can best co-operate, not only with the Preparatory Committee, but also with the Chief Executive Designate and her or his team later in the year. I think everybody recognises that co-operation with the team designate will necessarily be at an even more intense and comprehensive level than with the Preparatory Committee. But those are matters that I'd like to discuss first or see discussed with Chinese officials. I'm sure that the co-operation will be as successful as it's proving to be on the Budget and on financial issues at the moment.

Question: Will there be any meetings between the new Foreign Secretary meet...

Governor: Well, as you know Vice-Premier Qian has accepted the invitation to go to the United Kingdom in the autumn after the UN General Assembly. The new Foreign Secretary who I imagine will be announced today will, I am sure, regard that as one of his most important autumn meetings and one of his priorities and that's one reason why I'm hoping that I'll be able to fly back to London for a couple of days in about 10 days or a fortnight's time to brief the new Foreign Secretary and any new ministers or officials about Hong Kong and to see any other new ministers who have responsibilities which touch on Hong Kong as well.

Question: What message will you bring to the new Foreign Secretary...

Governor: The message I'll have is that we've still got a robust economy, that we've got some problems with unemployment and consumer confidence which we need to address. I'll also say to him that we've recently made better progress with, for example, the good deal on the Court of Final Appeal and with the agreement on the airport and the franchises. But there remains a lot of work to do on issues like right of abode and adaptation of laws and we should do everything possible to make progress in those areas. I think what's required is for Chinese officials to be as co-operative as possible so that we can enjoy progress in those areas just as we've enjoyed progress for the last month in others. I'll also say that I think the Chief Secretary's visit to Peking and the courtesy and cordiality with which she was received were an important sign and that she is much reassured by what was said to her by Qian Qichen and by Director Lu about their commitment to a successful and peaceful and stable transition and in particular by what they said about the importance of Hong Kong's civil service to the success of the community.

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