XN000022-1991-07-04 — Page 15

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THURSDAY, JULY 4, 1991

FANNY WONG (SCMP): GIVEN THAT THE BRITISH GOVERNMENT ON BEHALF OF HONG KONG HAS ACCEPTED SUCH A RAD DEAL FOR HONG KONG AND GIVEN THAT TIME AND AGAIN YOU AND MEMBERS OF THE EXECUTIVE COUNCIL HAVE STRESSED THE NEED FOR THE MAINTENANCE OF THE LINE OF AUTHORITY BY THE HONG KONG GOVERNMENT, DON'T YOU THINK THAT IT'S RIGHT FOR YOU I MEAN TOP LEADERS IN THIS GOVERNMENT RESPONSIBLE FOR PADS AND EXCO MEMBERS TO RESIGN?

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THE GOVERNOR: THE ANSWER IS 'NO' I DO NOT THINK THIS IS A BAD DEAL. I THINK THIS IS A GOOD DEAL FOR HONG KONG, THIS IS THE SORT OF ARRANGEMENT THAT WE'VE BEEN SEEKING OVER MANY MONTHS OF SOMETIMES VERY DIFFICULT DISCUSSION AND I AM PLEASED TO SEE THIS PARTICULAR RESULT.

JOHN ELLIOTT (FINANCIAL TIMES): THROUGHOUT MOST OF LAST YEAR. YOUR GOVERMENT WAS RESISTING APPROACHES FROM CHINA TO DISCUSS AND CONSULT ON THE AIRPORT AND GIVEN THE SORT OF DEAL THEY'VE BEEN GIVEN THIS WEEK. DO YOU REGRET THAT APPROACH? DO YOU THINK THAT THE AIRPORT COULD HAVE GONE AHEAD EARLIER AND MORE COMFORTABLY IF YOU HADN'T RESISTED THOSE APPROACHES? AND SECONDLY, SURELY IT IS JOINT- GOVERNMENT, IF YOU ARE GOING TO BE HELD UP WHEN YOU TALK TO HIM ABOUT ALL THESE DIFFERENT PROJECTS AND FRANCHISES; THAT SURELY WILL BECOME JOINT-GOVERNMENT AS YOU APPROACH 1997.

GOVERNOR: I DON'T THINK THIS HOLDS US UP AT ALL, I THINK ONE OF THE IMPORTANT THINGS ABOUT THIS IT ENABLES US TO GET AHEAD AND TO GET AHEAD WITH THE SORT OF SPEED THAT IS NECESSARY, BECAUSE WE HAVE ALL THE KEY BITS OF THE AIRPORT PROJECT WHICH ARE THERE, ACCEPTED BY BOTH SIDES AS BEING ESSENTIAL FOR THE AIRPORT AND TO GET AHEAD WITH IT.

AND THOSE DON'T REQUIRE FURTHER CONSULTATION. THERE IS A PROVISION, AND THIS WILL APPLY LATER DOWN THE ROAD, TO WHAT YOU DO ABOUT MAJOR FRANCHISES, MAJOR CONTRACTS, IF THEY STRADDLE 1997, ALSO A PROVISION FOR DEALING WITH THOSE QUICKLY. SO I DON'T SEE THAT'S EITHER JOINT-GOVERNMENT, JOINT-ADMINISTRATION, OR THAT IT IS GOING TO HOLD US UP. THE FIRST PART OF YOUR QUESTION AND THE WORLD IS FULL OF 20/20 HINDSIGHT EXPERTS: IF ONLY YOU HADN'T STARTED FROM HERE YOU MIGHT BE IN A DIFFERENT POSITION. WE HIT PROBLEMS ON THIS AIRPORT PROJECT WHICH WE HAD NOT, FRANKLY, EXPECTED. WE HAVENT'T EXPECTED TO GET A CRITICAL STANCE FROM CHINA. IT IS QUITE CLEAR THAT WHEN THAT HAPPENED, AS I WAS SAYING EARLIER, THAT IT CREATED A SITUATION WHERE IF WE DIDN'T GET A MORE POSITIVE VIEW FROM CHINA, IT WAS GOING TO AFFECT THE ATTITUDE OF PRIVATE SECTOR INVESTORS AND THEREFORE THE WHOLE FRAMEWORK FOR THE PROJECT. AND WE HAVE, AS A RESULT OF THAT, BEEN IN VERY CLOSE, DETAILED DISCUSSION CONSULTATION IF YOU LIKE - WITH CHINA OVER MANY MONTHS NOW. IT HAS TAKEN US MANY MONTHS OF HARD WORK TO GET TO THE POINT WE'VE NOW GOT, A GOOD AGREEMENT TO GO AHEAD.

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JOHN ELLIOTT (FINANCIAL TIMES): BUT THE INFERENCE OF THE WHOLE AGREEMENT, AND WITH THE PARAGRAPH AT THE END IS, THAT ALL THE THINGS IN HERE, WILL ALSO APPLY TO OTHER MAJOR DECISIONS WHICH STRADDLE 1997, COULD YOU ELABORATE ON WHAT RIGHT CHINA WILL HAVE AS A SPIN-OFF FROM THIS AGREEMENT TO GET THAT SORT OF CONSULTATION AND THAT SORT OF NEAR AGREEMENT, VETO POWER, ON OTHER ISSUES, AND SURELY THIS DOES BECOME

JOINT-GOVERNMENT?

/GOVERNOR :