XN000022-1994-07-22 — Page 3

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FRIDAY, JULY 22, 1994

GOVERNOR TO MEET OFFICIALS IN LONDON

THE GOVERNOR, THE RT HON CHRISTOPHER PATTEN, WILL FLY TO LONDON (FRIDAY) EVENING FOR THREE OR FOUR DAYS OF OFFICIAL MEETINGS ON HONG KONG ISSUES BEFORE GOING ON LEAVE UNTIL THE END OF AUGUST.

SPEAKING TO REPORTERS AT THE CENTRAL GOVERNMENT OFFICES LOBBY THIS AFTERNOON BEFORE HIS DEPARTURE, MR PATTEN SAID: "I'VE GOT A NUMBER OF MEETINGS PLANNED IN LONDON, BEGINNING ON MONDAY WITH MEETINGS WITH THE FOREIGN SECRETARY, FOREIGN OFFICE OFFICIALS AND THE PRIME MINISTER.

"I'LL ALSO BE MEETING DURING THE WEEK, AMONG OTHERS, THE CHAIRMAN OF THE HOUSE OF COMMONS' FOREIGN AFFAIRS SELECT COMMITTEE, DAVID HOWELL, THE LABOUR PARTY'S FOREIGN AFFAIRS SPOKESMAN, JACK CUNNINGHAM, THE LEADER OF THE LIBERAL DEMOCRATIC PARTY, ASHDOWN.

PADDY

LUNCH

DURING HIS STAY IN LONDON, THE GOVERNOR WILL ALSO HAVE WITH HONG KONG EXECUTIVES WHO ARE WORKING IN LONDON AND THE UNITED KINGDOM AND WILL MEET ACADEMIC SPECIALISTS ON CHINA AND HONG KONG).

AT THE PRE-DEPARTURE MEET-THE-MEDIA SESSION, MR PA.TTEN COMMENTED FURTHER ON THE GENERAL CHAMBER OF COMMERCE'S PROPOSAL FOI A TAX-FUNDED OLD AGE PENSION.

"I DON'T THINK THAT THAT IS THE RIGHT WAY FORWARD FOR HO'NG KONG, HE SAID.

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"IT DOES THREATEN PRECISELY THAT SORT OF WELFARE WHICH MANY PEOPLE HAVE RIGHTLY WORRIED ABOUT."

BLACK HOLE

THE GOVERNOR SAID THE INITIAL ESTIMATES WHICH HE MADE YESTERDAY ON THE GENERAL CHAMBER'S PROPOSAL WERE ON THE LOW SIDE.

"OUR BEST ESTIMATE IS THAT PAYING FOR A PENSION THROUGH THE TAX SYSTEM WOULD ADD BETWEEN THREE AND FOUR PER CENT TO PROFITS TAX ANI. BETWEEN THREE AND FOUR PER CENT TO SALARIES TAX, MR PATTEN SAID.

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"IT'S DIFFICULT TO BE ABSOLUTELY PRECISE BECAUSE YOU MAVE TO MAKE ESTIMATES ABOUT TAKE-UP BUT I DON'T THINK THAT THE COMMUNITY WILL REGARD THAT AS AN ACCEPTABLE OR AFFORDABLE OPTION.

"IT ALSO HAS THE DISADVANTAGE OF BREAKING WHAT, IN OUR VIEW, IS THE IMPERATIVE IRON-LINK BETWEEN CONTRIBUTIONS AND BENEFITS."

NOTING THAT PEOPLE WERE PUTTING FORWARD ALTERNATIVES RATHER OFFERING CRITICISMS, MR PATTEN SAID: "I DON'T THINK ANY ALTERNATIVE ADVANCED SO FAR HAS A COMPELLING CASE TO BE MADE FOR IT."

THAN

THE GOVERNOR REITERATED THAT HE STILL BELIEVED THAT THE GOVERNMENT'S PROPOSAL WHICH WAS A PRUDENT, COMPASSIONATE AND WORKABLE SCHEME, WAS THE BEST ON THE TABLE.

"IT'S AFFORDABLE. IT PROVIDES IMMEDIATE HELP AND THE GOVERNMENT WILL ITSELF BE MAKING A CONTRIBUTION WHICH WILL BE EQUIVALENT TO ABOUT 35 PER CENT OF THE COST OF THE SCHEME,

* HE ADDED.

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