XN000022-1994-05-26 — Page 2

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CS SPEAKS TO MEDIA

THURSDAY, MAY 26, 1994

THE FOLLOWING IS THE TRANSCRIPT OF THE MEDIA SESSION BY THE DEPUTY то THE GOVERNOR, MRS ANSON CHAN, AFTER HER VISIT TO THE CUSTOMS AND EXCISE DEPARTMENT THIS (THURSDAY) AFTERNOON:-

WE

MRS CHAN: FIRST OF ALL, I WANT TO SAY HOW PLEASED I AM TO BE ABLE THIS AFTERNOON TO HAVE AN OPPORTUNITY TO SEE FOR MYSELF HOW THE CUSTOMS AND EXCISE STAFF GO ABOUT THEIR VERY IMPORTANT WORK. AS YOU KNOW, THEY PLAY A MAJOR ROLE IN PREVENTING DRUG TRAFFICKING, MONEY LAUNDERING. HAVE A REPUTATION FOR PROTECTING INTELLECTUAL RIGHT PROPERTY WHICH IS SECOND TO NONE. THE CUSTOMS AND EXCISE DEPARTMENT, THE COMMISSIONER AND HIS STAFF ARE RESPONSIBLE FOR COLLECTING A VERY SUBSTANTIAL PART OF OUR REVENUE. LAST YEAR, IT WAS RESPONSIBLE FOR COLLECTING OVER $7 BILLION WHICH IS ABOUT 6 PERCENT OF OUR TOTAL REVENUE. SO, YOU CAN SEE FROM THAT THAT THEY DO HAVE A VERY VERY IMPORTANT ROLE TO PLAY. THEY'VE SUCCESSFULLY IMPLEMENTED A COMPUTERISATION SYSTEM WHICH WILL NOT ONLY EXPEDITE IMPORT LICENSING AND OTHER LICENSING PROCEDURES BUT WILL ALSO, OF COURSE, ASSIST IN THE DAILY EXECUTION OF THEIR WORK. AND, I CONGRATULATE THE COMMISSIONER AND HIS STAFF FOR THE FIRST-CLASS JOB THAT THEY ARE DOING. NOW, I'LL ANSWER QUESTIONS. I GATHER YOU HAVE ONE OR TWO AREAS THAT ARE OF PARTICULAR CONCERN TO YOU.

QUESTION: WHAT ABOUT THE NEWS THAT PRESIDENT CLINTON WILL RENEW CHINA'S MEN IN THE NEXT COUPLE OF DAYS WITH THE CONDITION THAT WEAPONS SALE FROM CHINA BE BANNED?

MRS CHAN: THERE'S BEEN A GOOD DEAL OF SPECULATION ABOUT WHAT THE PRESIDENT MAY OR MAY NOT DECIDE TO DO ON THE MFN FRONT. I AM EXPECTING AN ANNOUNCEMENT IN THE VERY VERY NEAR FUTURE AND, OF COURSE, UNTIL THE ACTUAL ANNOUNCEMENT IS MADE, WE CAN ONLY SURMISE WHAT THE PRESIDENT MIGHT OR MIGHT NOT DO. AS YOU KNOW, I MYSELF WAS IN WASHINGTON LOBBYING FOR THE UNCONDITIONAL EXTENSION OF MFN FOR CHINA. WE BELIEVE VERY VERY STRONGLY THAT THAT IS THE RIGHT WAY FORWARD. IT IS IN THE INTEREST NOT ONLY OF HONG KONG BUT CLEARLY IN THE INTEREST OF BOTH THE UNITED STATES AND CHINA. AND SO, WE VERY MUCH HOPE THAT PRESIDENT CLINTON WILL FEEL ABLE TO EXTEND MFN UNCONDITIONALLY.

QUESTION: ARE YOU ENCOURAGED BY MR LU PING'S WORDS TODAY THAT CHINA IS PREPARED TO BE FLEXIBLE ON THE MAKE-UP OF THE JUDGES IN THE COURT OF FINAL APPEAL?

MRS CHAN: YES. I STRESS ONCE AGAIN THAT THE COURT OF FINAL APPEAL, THE LEGISLATIVE PROPOSALS THAT WE HAVE DRAFTED ARE BASED ON THE AGREEMENT THAT WE HAVE REACHED PREVIOUSLY WITH THE CHINESE. WE HAVE HANDED TO THE CHINESE A COPY OF THE DRAFT BILL AND WE HOPE THAT WE WILL REACT AS SOON AS POSSIBLE. WE WILL ALSO, OF COURSE, BE CONSULTING THE LEGAL PROFESSION. OF COURSE, THE LEGAL PROFESSION'S VIEWS ARE KNOWN TO US BUT WE HOPE VERY MUCH IN THE NEXT STAGE OF THE CONSULTATION,

WE WILL BE ABLE TO PERSUADE THE LEGAL PROFESSION THAT ALTHOUGH THEY MAY NOT BE ENTIRELY HAPPY WITH THE ACTUAL PROPOSALS CONCERNING THE NUMBER OF JUDGES IN THE COURT OF FINAL APPEAL, THEN, NEVERTHELESS, THEY CAN BE PERSUADED THAT THIS IS IN THE BEST INTEREST OF HONG KONG. WHAT IS OF INTEREST TO US IS TO GET THE COURT OF FINAL APPEAL ESTABLISHED QUICKLY AS POSSIBLE SO THAT IT HAS SOME EXPERIENCE OF ACTUALLY RUNNING AND ACCUMULATING EXPERIENCE.

AS

/MRS CHAN: