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Mr Rifkind: I think the factors that make Hong Kong unique are very clear. Clearly we are not in this case talking about independence which has been the consequence of the withdrawal of the United Kingdom in most of the former Empire, and that poses particular problems. But in relation to China there is also the different political system, the different cultural values, and all the factors that you are very familiar with. So it was always going to be by far one of the most complicated and difficult challenges. We have now been working on this challenge over a good number of years and I think the fact that today, only 18 months before the transition, the fact that the Hong Kong economy and that the atmosphere of Hong Kong remains in such a healthy form is, I believe, a tribute to all who have been involved in this.

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I am very conscious of the fact that one should not make assumptions that because today matters may seem reasonably healthy that that could not change. Of course it could change in either direction. That is always a possibility and we all have to work with every sinew at our disposal to ensure that the confidence and the health of the economy which we see today continues up to and beyond June of next year. But I think that the fact that we have reached this stage in the form that we now see is no mean achievement and something which therefore enables us to look to the future with both resolution but also significant confidence.

Question (follow up): The previous governors maintained a much better relationship.

Mr Rifkind: Well, I'm not sure why you say that. I've certainly been with the present Governor over the last 48 hours and I have seen a degree of warmth, affection and enthusiasm which I wish I received in my constituency.

Question: Minister, having lived in Hong Kong for 20 years and running a business which represents several British companies, I am very confident that I can continue to do business here and that my principals will have visa-free entry into Hong Kong to visit me as they normally do for their suits and for their business. However, I'm less sanguine about my own position. Will I continue to have a right of residence and to come and go as I please, or just the right to land?

Mr Rifkind: In Hong Kong, you mean?

Question: In Hong Kong. There are many British people for whom this is unclear and I would like to know what your views are on that.

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