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"The success of Mr Rifkind's visit is a clear indication that Britain and China can work together to complete their agenda of work before 1 July 1997.
"This new momentum in implementing the Joint Declaration is one of the reasons for my growing confidence about the future," she said.
Mrs Chan said another reason for her confidence in Hong Kong is the civil service which commands the respect and support of the community.
"We now have a senior civil service team in place which is qualified to lead Hong Kong successfully through the transition. A team which has the support of their colleagues, the support of the community and which merits and, I am pleased to say, is receiving China's support.
"China, I believe, recognises the value of a highly competent, corruption-free civil service which is able to make decisions free from political or commercial interference in the best interests of the people of Hong Kong," she said.
Mrs Chan said the other fundamental component of Hong Kong's success is our
economy.
"We have every reason to be confident about the economy, and every reason to be confident about our ability to manage our public finances in a way which facilitates, rather than impedes, economic growth."
Mrs Chan said the priorities of the Government in the next 17 months would be to find a way of working in co-operation with the Preparatory Committee, to reassure those who have doubts about the future and to go on governing and making decisions to keep Hong Kong's economy competitive and public services efficient.
"The Liaison Office has been established and the Secretary for Constitutional Affairs and his staff, who will be running the office, stand ready to offer timely and effective assistance to the Preparatory Committee," she said.
Mrs Chan said she has no doubt that the people of Hong Kong and their Government are capable of meeting these challenges successfully.
"No doubt that we have the resilience, the skills and, above all, the commitment to make a success of our future," she said.