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* First, we are making preparations for a smooth handover of defence responsibilities to the Chinese Central Government. From 1 July 1997, the People's Liberation Army will be responsible for the defence of the Hong Kong SAR. The agreement on defence lands, reached in the Joint Liaison Group last year, has laid a good foundation for this. The Government and the out-going British Garrison are stepping up our efforts to cooperate with the Chinese authorities to ensure that the task is completed successfully and in good time.
* Secondly, we are working in close consultation with the Chinese side on a series of arrangements to combat trans-boundary criminal activities. We are, for example, negotiating a network of new bilateral agreements with third countries on the surrender of fugitive offenders which will remain in force after 1997. We are also negotiating new bilateral agreements with third countries for the provision of mutual legal assistance in criminal matters. Subject to further consultation with the Chinese side, we will be putting legislation to this Council to bring these new agreements into force as soon as possible.
*Thirdly, we are engaged in continuing liaison with the Chinese authorities, through Interpol and through border liaison channels, to improve our joint efforts in combating cross-border crimes, smuggling, illegal entry and other immigration offences. The results are evident, for example, in the significant reduction of stolen luxury vehicles in recent years, in the swift and successful cracking of the Macao jetfoil robbery case a few months ago, and in the substantial reduction in the number of pregnant Two Way Permit holders coming to give birth in Hong Kong in the first nine months of this year. We are also engaged in discussions with the Guangdong authorities on the boundary of administration of Hong Kong, so as to clarify ambiguities on the ground and at sea, and thus achieve a smoother working relationship with our neighbour.
* Fourthly, we have now reached agreement in principle with the Chinese side on the negotiation of arrangements with third countries on the Transfer of Sentenced Persons which will continue beyond 1997. These will replace current UK-based arrangements under which persons sentenced to imprisonment in another territory can, subject to the agreed conditions, return to their home country to serve out their prison terms.
Mr President, I shall now turn to two specific issues over which Honourable Members, and indeed the community, have expressed particular concern.