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Statement by the Chief Secretary

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The following is a statement by the Chief Secretary, Mrs Anson Chan, after meeting the Director of the Hong Kong and Macau Affairs Office, Mr Lu Ping, in Peking today (Friday):

I have had a very useful and businesslike meeting with Director Lu Ping.

Mr Lu and I exchanged views on a wide range of key transitional issues, covering political as well as economic matters. We also followed up on a number of subjects which were discussed when we last met in Hong Kong earlier this month.

On co-operation with the Preparatory Committee (PC), I gave Mr Lu the preliminary response of HKG to the list of items for co-operation handed over to the Liaison Office by the PC secretariat. HKG have been able to provide assistance on some of the items. As for the other items, I explained to Mr Lu that we would require further clarification before we could take forward our consideration. I also reiterated to Mr Lu HKG's readiness to co-operate on the basis of our three established parameters. Both sides agreed that the Liaison Office and the PC Secretariat should maintain dialogue.

On the civil service, I told Mr Lu that my civil servant colleagues had found the public statement issued after the recent meeting at The Hague between the two Foreign Ministers reassuring. In particular, they welcomed China's agreement that continuity of the civil service was vital to a successful transition, that all civil servants were welcome to stay on to work for the SARG, and that civil servants should remain loyal to the people of Hong Kong and to HKG before 1 July 1997 and to the SARG thereafter. I expressed the hope that both sides would continue to build on that to maintain the morale and confidence of the civil service. Mr Lu fully agreed with my sentiments. He also repeated the hope that all civil servants would stay on to serve the SARG.

On the co-operation with the Chief Executive (Designate), we had some initial exchange of ideas. I made clear to Mr Lu that we would be offering positive co- operation and would provide the CE (Des) with sufficient support, whilst ensuring the morale of civil service and the effective administration of Hong Kong. Both sides agreed to continue discussion.

One of the subjects we also discussed was the Chinese proposal for a provisional legislature. There remains, of course, a fundamental difference between the two sides on this question. But we also agreed to try and find common ground. Mr Lu assured me there would not be a second power centre in Hong Kong and that the work of the PC would not interfere with the effective administration of Hong Kong.

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