XN000022-1989-04-07 — Page 3

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FRIDAY, APRIL 7, 1989

"NOW THAT THE QUESTION OF SOVEREIGNTY IS

SETTLED, THERE 19 EVEN STRONGER REASON WHY CHINA SHOULD WANT TO ENSURE THAT HONG KONG WILL CONTINUE TO THRIVE.

"HAVING REJOINED THE INTERNATIONAL COMMUNITY AS A KRY AND RESPONSIBLE PLAYER, CHINA CANNOT AFFORD TO PUT HER INTERNATIONAL REPUTATION AT STAKE BY DOING ANYTHING THAT WOULD DESTROY THE CAREFULLY WORKED OUT ARRANGEMENTS FOR THE FUTURE, I SIR DAVID NOTED.

THE CHIEF SECRETARY POINTED OUT THAT THERE WAS ALSO UNDERSTOOD AND RECOGNISED CHINESE ASPIRATION REUNIFICATION THROUGH THE "ONE COUNTRY TWO SYSTEMS" TERRITORIES OTHER THAN HONG KONG.

1

FOR POLICY

THE WELL NATIONAL

COVERING

"THE WHOLE WORLD WILL BE WATCHING, INCLUDING TAIWAN, HOW HONG KONG IS GOING TO WORK UNDER THIS INNOVATIVE SOLUTION.

"CHINA CERTAINLY HAS EVERY WISH TO MAKE THIS POLICY A VISIBLE SUCCESS, SIR DAVID SAID.

"I

SIR DAVID POINTED OUT THAT ON THE BASIS OF OUR EXPERIENCE IN DEALING WITH THE CHINESE ON MATTERS OF CONCERN TO HONG KONG, WE COULD VERY CONFIDENTLY SAY THAT BOTH SIDES HAD WORKED, AND PRODUCED POSITIVE RESULTS, WITH HONG KONG'S INTERESTS AT HEART.

"OF COURSE, THERE WERE OCCASIONS WHEN DIFFERENCES IN OPINION HAD TO BE RECONCILED AND DELIBERATIONS SOMETIMES TOOK LONGER то PRODUCE RESULTS.

"BUT THESE ARE INEVITABLE IN ANY TALKS ON SUCH IMPORTANT SUBJECTS AS TRANSITIONAL ARRANGEMENTS FOR HONG KONG," SIR DAVID SAID.

"OUR EXPERIENCE DEMONSTRATES THAT CHINA HAS EVERY WILL ΤΟ HONOUR ITS COMMITMENT AND IS INCREASINGLY GETTING TO GRIPS WITH HONG KONG'S REALITIES, HE ADDED.

SIR DAVID SAID INTERNATIONAL CONFIDENCE ON THE FUTURE OF HONG KONG WAS OF PARAMOUNT IMPORTANCE TO OUR FUTURE.

"TO RETAIN AND REAFFIRM THAT CONFIDENCE, WE NEED TO ENSURE THAT HONG KONG REMAINS ATTRACTIVE TO THE INTERNATIONAL BUSINESS COMMUNITY, HE SAID.

A STABLE, FAMILIAR AND RELIABLE LEGAL SYSTEM WHICH WAS A PREREQUISITE TO BUSINESS CONFIDENCE IN HONG KONG MUST BE MAINTAINED, THE CHIEF SECRETARY SAID.

HE SAID THE PRINCIPLE OF RETAINING THE PRESENT LEGAL SYSTEM WAS ENSHRINED IN THE JOINT DECLARATION AND REPEATED IN THE DRAFT BASIC LAW.

"THE FUTURE SAR GOVERNMENT MUST CONTINUE TO HAVE FULL ON ECONOMIC, FINANCIAL AND BUDGETARY POLICIES. THIS IS A KEY THE JOINT DECLARATION," SIR DAVID SAID.

AUTONOMY PART OF

PHONG KONG