XN000022-1995-02-27 — Page 3

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It's a good day for the region and a good day for the world. I just add this that I do hope that it makes it possible to move more rapidly towards the resumption of negotiations on China's membership of the WTO. Clearly, it would be easier to tackle all these issues, easier to avoid them coming up and creating problems, if China, which is one of the great economic, growing economic powers in the world, was a matter of the GATT and of the WTO.

Question: Return to the Wednesday budget, is it a good news or a bad news to the Hong Kong people?

Governor: Because we have an excellent and responsible Financial Secretary, whenever he presents a budget, it's good news for Hong Kong. But above all, what is good news for Hong Kong is that the people of Hong Kong continue to work hard and competitively and give us one of the outstanding economies in the world. Of course, there are difficulties and problems from time to time. And that's always the case in economies. But we've had 34 years now of uninterrupted economic growth which helps to provide the resources for homes like this. You can't provide more social programmes unless you got a strong economy. And that 34 years of economic growth is a tribute to the spirit and the vigour and the drive of the people of Hong Kong,

Question: (about the bankruptcy of Barings)

Governor: The Financial Secretary made a statement this morning about that, pointing out what the Monetary Authority had done in relation to Barings, and I don't think I can add usefully to what Sir Hamish said this morning.

Question: Governor, about sewage scheme. Your side has suggested another group other than JLG group to talk about the sewage scheme of stage II. Is it going to frozen new talk on Phase I ignoring the Chinese side...

Governor: I think you need to distinguish between stage I and stage II. Stage I is necessary whatever scheme is undertaken on the stage II. Stage I will reduce substantially the pollution in our harbour, and will give us the sort of modern, up-to- date sewage collection and treatment resources that we need. Frankly, I wish we've done this a long time ago. But that is completed before 1997 and then the community will have to move on to the next stage which raises difficult and challenging environmental issues on which we are very happy to have a full and open dialogue with the Chinese side in whatever forum they like.

Question: What's the reason for another group other than JLG?

Governor: I think that it's very often the case that matters are taken forward in expert groups outside the JLG, as well as discussed in the JLG in parallel. I don't think there's any particular significance about it. One last question.

Question: About the Route 3 CPS. Will the route still be put forward to Legco, and what do you think about the price in building network which has been criticised...