XN000022-1995-03-31 — Page 6

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The fact that our Commissioner in Washington wasn't able to respond to a dinner engagement by a foundation when Director Lu was speaking to it, is frankly, I think everybody recognises, neither here nor there.

We look around the world, we see people talking in every country, in every continent, about matters which are far more difficult, far more vexatious than the ones which affect us in Hong Kong. So people do argue, I think, people do wonder why one or two Chinese officials are the odd men out when all over the world we're trying to resolve these matters through discussion and through co-operation.

It will remain my position until June 30, 1997 that my door, the Chief Secretary's door, everybody's door is open for discussion. And when a matter has happened, like the one the other day, which we are trying to resolve in a firm but low- key manner, when matters like that happen it underlines the importance of consultation and co-operation. We have shared interests in Hong Kong and I hope, frankly, that Chinese officials will recognise that from time to time.

End/Friday, March 31, 1995

Transcript of Financial Secretary's media session

Following is the transcript of the media session by the Financial Secretary, Sir Hamish Macleod, at Central Government Offices on transitional Budget matters today (Friday):

Good morning,

I thought it would be useful just to try and clear up some of the confusion that seems to be arising about the talks on the 1997-98 Budget.

The subject actually goes back quite a long way. Back in June last year, Ambassador Guo, in the JLG talks at that time made a proposal; the proposal was that we should consult on the 1997-98 Budget and brief them on the procedures used for the preceding budget, that is to say the 1996-97 Budget. So that was their proposal.

And we went back in November with more detailed proposals on how to do precisely that, that is to say do what the Chinese side had suggested. We got a positive response at that time to our reaction to their proposal. It came up again in a meeting in December. Again, we had no indication that there were any problems on this issue, and in particular on the scope of the talks. I then further gave some details of our proposals, of course, in the Budget Speech again. Even by then, no problems had emerged.