XN000022-1991-07-10 — Page 4

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WEDNESDAY, JULY 10, 1991

LET ME TURN BRIEFLY, SIR, TO THE AGREEMENT ITSELF. I THINK THE STRENGTH OF THE AGREEMENT IS, IT DOES PROVIDE PRACTICAL, WORKMANLIKE ARRANGEMENTS WHICH ENABLE US TO GET ON WITH THE BUILDING OF THE AIRPORT. AND THE ANNEX TO THE UNDERSTANDING LISTS ALL THE MAJOR PROJECTS, AND THE UNDERSTANDING ITSELF MAKES IT VERY CLEAR THAT THE HONG KONG GOVERNMENT IS GOING TO BE RESPONSIBLE FOR THE BUILDING OF THOSE PROJECTS; CLEARLY A RECOGNITION OF THE ROLE OF THE HONG KONG GOVERNMENT IN THE BUILDING OF THIS AIRPORT.

YES, THERE WILL BE SOME MATTERS WHICH WILL BE DISCUSSED AND MANY MEMBERS HAVE REFERRED TO CLAUSE 3 OF THE AGREEMENT. THE MATTERS WHICH ARE TO BE DISCUSSED ARE MATTERS FOR WHICH THE SAR GOVERNMENT ASSUMES RESPONSIBILITY IN 1997. WE HAVE ALWAYS ACCEPTED THE SITUATION THAT WE SHOULD DISCUSS WITH CHINA, MATTERS WHICH FALL TO THE RESPONSIBILITY OF THE SAR. WE DELIEVE THAT'S A REASONABLE POSITION TO BE IN AND WE BELIEVE THAT THE CLAUSE 3 WHICH IS IN THAT AGREEMENT PROVIDES A FRAMEWORK, A GOOD TIME-SCALE AND VERY GOOD ARRANGEMENTS FOR US TO REACH AN AGREEMENT ON THOSE MATTERS. THERE IS NO SUGGESTION IN THAT CLAUSE OF ANY VETO; THERE IS NO SUGGESTION IN THE WHOLE AGREEMENT INDEED, THAT HONG KONG IS BEING GIVEN DIRECTIONS AS TO HOW IT SHOULD OR SHOULD NOT BUILD THIS AIRPORT. CLEARLY, THAT IS ABSURD.

NOR INDEED IS THE ROLE OF THIS COUNCIL, EITHER IN ITS LAW- MAKING ROLE OR INDEED IN ITS ROLE IN APPROVING FUNDS FOR THIS PROJECT, CALLED INTO QUESTION. THE AUTHORITY OF THIS COUNCIL IN PASSING THE AIRPORT AUTHORITY BILL, IS UNQUESTIONED. THE AUTHORITY OF THE FINANCE COMMITTEE IN PROVIDING THE FUNDS FOR THIS PROJECT OR NOT DOING SO, IS UNQUESTIONED.

NOR SIR, YOUR AUTHORITY QUESTIONED. IN FACT, IT'S CLEARLY RECOGNISED THAT YOU WILL APPOINT MEMBERS OF THE AIRPORT AUTHORITY AND OF CONSULTATIVE COMMITTEE. I WAS QUITE SURPRISED TO HEAR MR LEE SUGGEST THAT BECAUSE THAT IT WAS YOU, SIR, WHO WAS GOING ΤΟ BE APPOINTING MEMBERS OF THE CONSULTATIVE COMMITTEE, WE WERE SOMEHOW GOING TO HAVE A SERIES OF LAP-DOGS, COULD I GENTLY REMIND MR LEE THAT THE CHAIRMAN OF THE CONSUMER COUNCIL IS APPOINTED BY THE GOVERNOR AND I'M NOT AWARE THAT HE HAS FOUND HIMSELF INHIBITED IN ANY WAY BY 80 BEING APPOINTED.

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SIR, LET ME TURN FINALLY TO THE REFERENCE WHICH IS MADE IN THE FINAL CLAUSE OF THE AGREEMENT, CLAUSE G WHICH REFERS ΤΟ CONTINUING CONSULTATIONS IN THE PERIOD UP TO 1997, AND THE VISITS OF THE FOREIGN SECRETARY WITH HIS OPPOSITE NUMBER IN CHINA.

SIR, THIS IS A RECOGNITION OF SOMETHING WHICH I THINK MANY MEMBERS OF THIS COUNCIL AND WHICH IN THE ADMINISTRATION HEAVE RECOGNISED FOR A LONG TIME, THAT IN THE RUN-UP TO 1997 THERE HAS TO BE CLOSE CO-OPERATION AND DISCUSSION WITH CHINA ON MATTERS OF MUTUAL INTEREST. INDEED, IT WAS THE FOREIGN SECRETARY HIMSELF, MR DOUGLAS HURD.

WHO MADE THAT SUGGESTION WHEN HE VISITED PEKING EARLIER IN THE YEAR. AND INDEED, HE DID DISCUSS THAT SUGGESTION BEFORE HE MADE IT IN HONG KONG. SO THERE IS NO QUESTION THAT THIS IS PART OF ANOTHER CONSPIRACY THAT WE ARE SEEING AN ALTERNATIVE METHOD OF TRYING TO NEGOTIATE BEHIND OUR BACKS. THERE ARE MANY MATTERS OF MUTUAL CONCERN OTHER THAN THE AIRPORT WHICH NO DOUBT THE FOREIGN SECRETARIES WILL WISH TO DISCUSS.

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/SIR, WE