XN000022-1995-01-12 — Page 5

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Governor: I think we've all got a role to play. In the Joint Liaison Group, this is a point which has been made again and again by British and Hong Kong government officials. We want to see it resolved. We've put forward proposals and ideas. We've been standing by for discussions between our Immigration Department and Chinese officials. There is no interest whatsoever for anybody trying to postpone the issue.

Question: Do you see the vital importance of this issue is linked up to the set up of the SAR government?

Governor: It obviously will have an effect on the SAR government. It'll have an effect on the speed with which the SAR government can meet the legitimate expectations of people in Hong Kong. We all want the SAR government to have a flying start. We all want the SAR government to enjoy the respect and affection and confidence of people in Hong Kong. This is the sort of issue I don't exaggerate as you know. This is the sort of issue which touches the matter centrally.

Question: Those requirements of the Chinese nationals and permanent residents so far are not clarified and stipulated in the Basic Law.

Governor: No, I think that's a matter which Chinese officials should clarify. Any other questions?

Question: Shall I refer to the CT9 question. So you're absolutely ruling out the possibility of re- tendering, then what do you think will be the solution, the ultimate solution?

Governor: We have proceeded in the case of CT9 in the interests of Hong Kong, trying to get the development moving forward as rapidly as possible, in a way which gives us the possibility of increasing competition in the port which will have an effect of course on prices. But we think that the way the issue's been discussed by some others does unfortunately affect the integrity of our system in Hong Kong. And it suggests that we should have some thing other than a level playing field for doing business and that's just not acceptable. If we allow that to happen, then it will have very serious implications for commercial life here in Hong Kong and for international confidence in Hong Kong. We know that there are concerns on the part of bankers and investors about the problems if you are trying to do business where the rule of law isn't absolutely clear.