XN000022-1992-11-30 — Page 2

STATEMENT ON LAW OF CONTRACT

MONDAY, NOVEMBER 30, 1992

COMMENTING ON THE STATEMENT ISSUED BY THE HONG KONG AND MACAU AFFAIRS OFFICE IN PEKING TODAY, A HONG KONG GOVERNMENT SPOKESMAN SAID:

"THE JOINT DECLARATION MAKES CLEAR THAT AFTER THE ESTABLISHMENT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION, THE LAWS PREVIOUSLY IN FORCE IN HONG KONG, WHICH INCLUDE THE LAW OF CONTRACT, SHALL BE MAINTAINED, SAVE FOR ANY THAT CONTRAVENE THE BASIC LAW AND SUBJECT ΤΟ ANY AMENDMENT BY THE HONG KONG SPECIAL ADMINISTRATIVE REGION LEGISLATURE.

ACCORDING TO THE BASIC LAW, CONTRACTS WHICH ARE VALID UNDER HONG KONG'S EXISTING LAWS WILL CONTINUE TO BE VALID AND RECOGNISED AND PROTECTED BY THE HONG KONG SPECIAL ADMINISTRATIVE REGION, PROVIDED THAT THEY DO NOT CONTRAVENE THE BASIC LAW.

AS A MATTER OF CURRENT PRACTICE, WE DISCUSS MAJOR GOVERNMENT FRANCHISES AND CONTRACTS STRADDLING 1997 WITH THE CHINESE SIDE OF THE JOINT LIAISON GROUP. THESE DISCUSSIONS HAVE BEEN PRODUCTIVE IN THE PAST AND WE ARE GLAD TO NOTE THAT THE CHINESE SIDE INTEND IN FUTURE TO TAKE A POSITIVE ATTITUDE TO POST-1997 INVESTMENT IN HONG KONG."

NEXT STEPS IN CONSTITUTIONAL PACKAGE EXPLAINED

THE SECRETARY FOR CONSTITUTIONAL AFFAIRS, MR MICHAEL SZE, TODAY (MONDAY) EXPLAINED THE NEXT STEPS WHICH THE GOVERNMENT GOING TO TAKE CONCERNING THE CONSTITUTIONAL PACKAGE.

WAS

SZE

ADDRESSING THE HONG KONG ASSOCIATION IN LONDON, MR EMPHASISED THAT THE PROPOSALS PUT FORWARD BY THE GOVERNOR WERE NOT SET IN CONCRETE BUT WERE PROPOSALS FOR DISCUSSION WITH ANYONE.

"THOSE CRITICAL OF OUR PROPOSALS SHOULD ADVANCE BEYOND PURELY RHETORICAL CHANTS. THEY SHOULD ALSO TELL US WHAT BETTER ALTERNATIVE PROPOSALS THEY THEMSELVES HAVE IN MIND, HE SAID.

THE ELECTORAL ARRANGEMENTS

FOR

TO THE PEOPLE OF HONG

"WE HAVE JUST ONE BOTTOM LINE 1994/95 SHOULD BE OPEN, FAIR AND ACCEPTABLE KONG.

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MR SZE SAID TIME WAS OF THE ESSENCE BECAUSE THE DEBATE COULD NOT GO ON ENDLESSLY.

GIVEN THE NORMAL ELECTION CYCLE AND THE TIMING OF THE 1994 AND 1995 ELECTIONS, IT WAS INCUMBENT ON THE ADMINISTRATION, WITH THE ADVICE OF THE EXECUTIVE COUNCIL, TO PUT FIRM, CLEAR AND DETAILED PROPOSALS ON THE FINAL PACKAGE TO LEGCO SOME TIME EARLY NEXT YEAR IN THE FORM OF DRAFT LEGISLATION.

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