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First, let me deal with the basic premise of Miss Lau's motion. As some of the Members have said, there is no question of a "second power centre", or a "shadow government". Indeed, there can be no such question. Under the Joint Declaration, Britain will continue to be responsible for administering Hong Kong until 30 June 1997, and the Chinese Government will co-operate in this connection. The Hong Kong Government will not shirk our responsibility and will not accept any shadow or parallel government. In the 17 months ahead, the Government will continue to discharge its responsibilities vigorously, conscientiously and in the best overall interests of the community.

The Chinese government is, of course, a co-signatory of the Joint Declaration. Senior Chinese officials responsible for Hong Kong affairs, including Mr Lu Ping and Mr Zhou Nan, have affirmed in public that:

(a)

(b)

that there is no question of a second power centre or parallel government; and

that the Preparatory Committee will not intervene in the administration of Hong Kong before 1997.

Let me now move on to the Preparatory Committee. According to the National People's Congress Decision of 4 April 1990, the Preparatory Committee is to be responsible for preparing for the establishment of the HKSAR Government, including the formation of the Selection Committee which is to elect the first Chief Executive. The Committee has, as we all know, just started its work. How it actually carries out its tasks must be a matter for the Committee itself. But we earnestly hope that the Committee will take full account of the Hong Kong community's wish in working for a successful transition, and in establishing a truly credible HKSAR Government. There are 94 Hong Kong members in the Preparatory Committee, including 14 from the Council. No doubt they will serve as a conduit in reflecting the views and concern of the people of Hong Kong. We are pleased to note that Vice Premier Qian Qichen had said that the Preparatory Committee should extensively solicit opinions from Hong Kong people. Indeed, we understand that one of the working rules adopted by the Preparatory Committee is that the Committee will take fully into account democratic principles and listen to the views of all sectors of the community.

On our part, we are committed to provide necessary assistance to the Committee. When the Chief Executive (Designate) is in place, we will likewise render immediate assistance.

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