XN000022-1995-05-18 — Page 5

Governor: I don't think there's any doubt at all about the composition of the court. If there is any doubt, I'd like Director Lu to say what it is. It may be that Chinese officials are having some difficulty trying to work out how to reconcile the Common Law whose continuance in Hong Kong has been pledged in the Joint Declaration with the Basic Law. But that frankly is their problem not mine.

Question: How are you going to help them to solve it?

Governor: How more helpful can we be? We sent them a Bill last May. They've sent us since then, I think it is 28 questions, all of which we've answered comprehensively. We've given every help possible.

Question: Director Lu said that the British side is not sincere enough in the talks...

Governor: I don't want to comment on propaganda.

Question: There is a saying that the events of Mr Li Ka-shing and Mr Tsang Hin-chi was someone deliberately released the news to affect the credibility of the PWC and this visit of Director Lu Ping. Do you have any comment on it?

Governor: If anybody said that they would be making a ludicrous fabricated claim. I think the facts speak for themselves and they owe a great deal I would have thought to the diligence of a free press.

Question: Director Lu also said that the Government should release the records of the British nationality of the civil service...

Governor: I think it is more sensible for me to read Director Lu's speech before I comment on it. I'm sure at least I hope I'm sure that he would behave in the same courteous way if it was me.

Question: Do you see any signs of social instability in Hong Kong affecting financial stability?

Governor: I don't see any signs of social instability in Hong Kong. There are apparently worries about social stability in other parts of the region. But there is no worry about social stability in Hong Kong. Look at Hong Kong. Hong Kong seems to be doing rather well.

Question: On unemployment, do you think there is any room for the Government to review the importation of labour policy and when would be a good time to abandon it?