XN000022-1994-12-21 — Page 6

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Governor: No, I don't think that Hong Kong's economy will be affected, at least in the short term. But it's obviously in our interest that China is able to join the World Trade Organisation as rapidly as possible. We are disappointed that it wasn't possible to conclude a deal by the end of this year. We are pleased that substantive progress has been made. We are unreservedly, and I repeat that, unreservedly, of the view that China should be a member of the World Trade Organisation. China is one of the most important economies in the world. It has one of the largest trade balances with the rest of the world, and it's important that China should be incorporated in international arrangements which will give the world more free trade, and therefore, more prosperity. What I am pleased about is that even though these negotiations haven't, alas, produced a satisfactory outcome as rapidly as we would have liked, the chairman of the working party has made it clear that negotiations will resume carly in the new year. And I very much hope that those negotiations bring the success that, alas, wasn't possible this month. I think it's fair to say that there are some big and difficult issues that have to be tackled, that have to be cracked between the world and China. So nobody should be, I think, too critical that it has proved such a difficult job. But the sooner it's concluded, the better for everyone, including Hong Kong. Hong Kong is one of the most successful trading territories in the world. We trade with all the other major trading nations. And clearly, in Hong Kong, the more trade there is between China and the rest of the world, the better. Any others?

Question: ...his accusations that you're just interested in an executive-led government, instead of a legislature...What is your comments on Mr Lau's dealing with his resignation and twist and turn

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Governor: Well, how Mr Lau behaves is very much a matter for him. And I don't criticise individual legislators. Mr Lau will, I'm sure, explained what he has done to both his constituency and to his party colleagues and fellow legislators. As for the issue, I am not sure I have got anything to add to what I have said before. The question is not whether Legco is a rubber stamp, plainly it's not a rubber stamp. If Legco was a rubber stamp, we wouldn't have had this problem. The question is whether we try to keep in place our existing industrial relations machinery, which has been extremely successful over the years, whether we try to combine that machinery with an effective legislative control. The truth of the matter is that we can't get this legislation through without the approval of the legislature. We now have to go back to the LAB, we have to try to persuade the LAB of our view about an enhanced package which will reflect what the legislature thinks, and then we have to go back to the legislature. But at the end of the day, unless the legislature approve, unless the legislature agree, then we won't be able to get our package through. And that is as clear as anything.