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Mr James Tien: Thank you Mr President. Chief Secretary, when you met with Mr Lu Ping and when you discussed the Provisional Legislature, what were your fundamental differences? Was it the existence of the Provisional Legislature or whether before July 1st 1997, whether the Preparatory Committee would start operating in Hong Kong?

CS: Mr President, I confirm that I think our fundamental disagreement is over the need for a Provisional Legislature. The Government's position on this is clear. As I have said on previous occasions, if the Chinese insist on proceeding with a Provisional Legislature then it is of course for the Chinese Government to explain why it is necessary, in what way it is good for confidence and for continuity in the systems and the policies and programmes which the community clearly are very concerned about.

the Mr Tsang Kin-shing (in Chinese): Mr President, the Provisional Legislature Governor and the Chief Secretary in fact have not made their stands known on what they will do after 1997. As an accountable and responsible Government you have to be responsible. The Legislature was elected in 1995 and we should continue until 1999. I cannot see what the Government would do during the transition period. You have not given us the crux of the problem. Have you tried to fight to get us through until 1999?

CS: Mr President, can I reiterate again that we have impressed upon the Chinese we see no need and indeed can see a great deal of harm in having a Provisional Legislature. In our view the Chinese should allow the current Legislature to continue after 1997. That is clearly what the people of Hong Kong want and what the civil servants wish to see.

Mr Ronald Arculli: Thank you Mr President. The Chief Secretary said to us that she expressed the view to Director Lu that the principal officials designate should remain in post but would give every assistance to the Chief Executive Designate. I just wondered whether the Chief Secretary is actually expecting a response from the Chinese Government on this particular point and if so, when is it likely that you might get a reply?

CS: Mr President, what Mr Lu and I agreed was that on the question of modalities for co-operation with the Chief Executive Designate, both sides will continue discussions and I would expect that in the context of these discussions it will become clearer what is the best modality to go for.

The President: Although this particular exchange has lasted for less than one hour, I think Members and myself certainly appreciate the Chief Secretary's courtesy and stamina in giving her answers standing whilst the Governor gives his sitting-down.

End

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