XN000022-1988-07-01 — Page 32

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FRIDAY, JULY 1, 1988

I WOULD LIKE TO END BY EMPHASISING ONE THING. I'M THE THIRD BRITISH MINISTER ΤΟ VISIT HONG KONG INSIDE A MONTH. ALL THESE VISITS MAKE CLEAR OUR DETERMINATION ΤΟ CARRY OUT IN FULL THE BRITISH GOVERNMENT'S RESPONSIBILITIES TOWARDS HONG KONG.

FANNY WONG (ORIENTAL DAILY NEWS); IT IS A QUESTION ON DEFENCE COST. IS IT TRUE THAT THE BRITISH GOVERNMENT WILL NOT CONSIDER MAKING ANY FURTHER CONCESSIONS то THE NEW DCA. SECOND, DESPITE SOME LEGISLATIVE COUNCILLORS VOTE AGAINST THE NEW PACT, ISN'T IT TOTALLY UNFAIR TO HONG KONG THAT THE BRITISH GOVERNMENT SHOULD IMPOSE ITEMS SUCH AS VAT OR EVEN SALARY TAX IN THE OLD AGREEMENTS, THAT WE HAVE ΤΟ PAY FOR THAT? ISN'T IT TIME NOW THAT YOU SHOULD CONSIDER 'DROPPING OUT THOSE ONE-OFF PAYMENT FOR THE OUTSTANDING BILL?

LORD GLENARTHUR: CAN WE TAKE THE DOA WHICH I THINK IS THE MAIN BURDEN OF YOUR QUESTION? THE FACT IS THAT THE AGREEMENT WHICH HAS BEEN ACHIEVED RESULTS FROM A LONG PERIOD OF NEGOTIATIONS, AND VERY TOUGH NEGOTIATIONS THEY'VE BEEN. WE NOW HAVE THAT AGREEMENT APPROVED BY EXCO AND IT NEXT GOES TO THE FINANCE COMMITTEE OF LEGCO AND I HOPE THAT THEY WILL SEE IT FOR WHAT IT IS, AND WHAT IT IS IS THE BEST AGREEMENT THAT COULD BE REACHED BETWEEN THE TWO SIDES. I HOPE ALSO THAT YOU WILL REALISE THAT THE UNITED KINGDOM HAS AGREED TO PAY A HIGHER SHARE AT A TIME OF INTENSE PRESSURE ON OUR DEFENCE BUDGET WORLDWIDE. SO THAT REALLY IS THE IMPORTANT THING, THE AGREEMENT HAS BEEN ACHIEVED, THE NEGOTIATIONS HAVE BEEN TOUGH, NOW THE IMPORTANT THING IS FOR IT TO GO IN FRONT OF THE FINANCE COMMITTEE OF LEGCO.

FANNY WONG: BUT ISN'T IT UNFAIR FOR US TO PAY FOR THE VAT AND THE SALARY TAX FOR THE OUTSTANDING BILL? ISN'T IT UNFAIR FOR US BECAUSE FOR SALARY TAX, HONG KONG CIVIL SERVANTS DON'T GET ANY SALARY TAX FROM THE HONG KONG GOVERNMENT?

LORD GLENARTHUR:

WELL, THAT MIGHT BE A POINT OF VIEW, BUT VARIOUS ELEMENTS IN THE FINANCIAL ARRANGEMENTS, PERHAPS EVEN MORE WIDELY THAN THAT SEEM TO BE UNFAIR, BUT I THINK YOU MUST ALSO BEAR IN MIND THAT WHEN IT COMES TO SOMETHING LIKE DEFENCE COSTS AGREEMENTS HONGKONG HAS FOR LONG PAID ITS SHARE, PAID A SUBSTANTIAL AMOUNT AND THOSE ARRANGEMENTS HAVE BEEN VALID NOW FOR MANY YEARS.

WHAT WE'VE GOT IS A NEW AGREEMENT; WE MUST GIVE THAT AGREEMENT THE OPPORTUNITY TO WORK. I BELIEVE THAT IT'S A FAIR AGREEMENT AND I HOPE THAT WHEN IT GOES IN FRONT OF THE LEGCO FINANCE THAT IT WILL BE ENDORSED AS IT HAS BEEN BY EXCO.

FANNY WONG: SO THERE WILL BE NO FURTHER CONCESSIONS?

LORD GLENARTHUR: WELL, AN AGREEMENT HAS BEEN REACHED.

/BALLY BLYTH (RTHK);