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I'll tell you one very important reason why it is not sensible to go ahead with that idea- not anything to do with the risk of confusion and the source of discontent before June 30. I'm thinking of the problems that it will cause for the SAR Government because it will mean that the SAR Government will begin with large legal questions being asked about all sorts of aspects of its management and administration.

If you talk about appointments in a provisional legislature before June 30, 1997, you will find that they are vulnerable to legal challenge, under the Basic Law, after June 30, 1997. If you try to pass legislation or discuss legislation before June 30, 1997, you will find that that is vulnerable to legal challenge after June 30.

So I hope that some people - to borrow a phrase - will think again about that. I don't think it would be helpful or in Hong Kong's interests and the only arguments, I guess, that are put forward for it are political rather than legal. But the simple answer to your question was the first one I gave.

Question: Mr Governor, I have been asked by the Chamber to ask you another very difficult political question but fortunately they have given me the option to ask you a personal question which I prefer today. I hope you allow me to continue our annual dialogue about the right of abode for expatriates in Hong Kong.

I talked about it with Lord Wilson five years ago, I've talked to you about it several times, I have talked to the Foreign Secretary about this, I have talked, the same as Anson, with Lu Ping about this, and I talked this morning before I came here with one of the directors of the Immigration Department who again confirmed to me, after five years - and I read for you, if I may:

[Reads]

"According to the existing Immigration Regulations foreigners cannot obtain permanent resident status unless they naturalise themselves into a British National Overseas."

If the British Hong Kong Government is not going to change this Ordinance, foreigners in Hong Kong are not able to obtain a Hong Kong permanent ID Card before July 1, 1997.

Governor: Could you tell me what you are quoting from?

Question: I quote from a question that I put forward to Mr Lu Ping in May of this year. I am not the spokesman for Mr Lu Ping but I have quoted this, this morning, to the Immigration Department who say that they are still discussing these points for almost five years now and still have not been able to come up with an answer. Could you give us, please, an answer?

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