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Mr K C Kwong (in Chinese): If you're talking about the Budget for 1998/99, of course that will be within the autonomy of the SAR Government. The Basic Law has clear stipulations regarding the guidelines in the formulation of our Budget.

Reporter (in Chinese): Mr Kwong, well, with regard to the Basic Law procedure, apart from seeking endorsement by LegCo and also the provisional legislature, will you report to the Central Government or will it be submitted to the Central Government for record? What is the whole procedure, the special procedure for this year?

Mr K C Kwong (in Chinese): The Basic Law will only take effect on July 1. Our view is that, say, for the Appropriation Bill, when LegCo pass it on April 16 as we hope, we will complete the appropriation procedure.

Reporter (in Chinese): What will be followed?

Mr K C Kwong (in Chinese): And for the revenue aspects, after the Appropriation Bill is passed, we will submit budget legislation on revenue proposals to LegCo. When they are passed, the procedure is completed.

Reporter (in Chinese): How about the provisional legislature? I think the JLG has reached a consensus.

Mr K C Kwong (in Chinese): The stand of the Hong Kong Government about the provisional legislature is very clear. I don't have to repeat that.

Reporter (in Chinese): After July 1, what will be the scenario? How will you liaise with the Central Government with respect to the Budget for the SAR?

Mr K C Kwong (in Chinese): After July 1, the relationship between the SAR Government and the Central Government has been clearly set out in the Basic Law.

Reporter (in Chinese): Mr Kwong, about the public works spending. There is still under-spending by several billion dollars this year. The Government has hoped to improve the under-spending situation for a few years. Why is it that you still can't improve the situation?

Another question is about resumption of land involving an expenditure increase by three times. Does that include the resumption of land with respect to the West Rail?

Mr K C Kwong (in Chinese): About the under-spending in capital works, I wonder where you get the data saying that it is very serious. Mrs Lam can answer that. The present situation has improved actually.

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