XN000022-1995-07-07 — Page 9

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This afternoon, I would like to review with you all some of the important points on the two agreements reached in June. Thereafter, I would like to outline a series of essential, but as yet unaccomplished, tasks some of which I know will be of direct concern to you for a smooth transition which need to be resolved in the months to

come.

II.

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Rule of Law

The very existence of an Indian Chamber of Commerce in Hong Kong illustrates several points: for example that Hong Kong is a free and capitalist society where international investment is always welcomed.

So, how do we ensure that this success is maintained? How do we ensure that we can all continue to enjoy living and doing business here? One important ingredient is the rule of law.

Court of Final Appeal

Our legal system is firmly based on the rule of law and the independence of the Judiciary. Public and international confidence in our independent judicial system has always been an important part of Hong Kong's success. Both the Joint Declaration and the Basic Law provide that the present judicial system will be maintained after the transfer of sovereignty in 1997, except for those changes consequent upon establishment of a Hong Kong-based Court of Final Appeal (CFA for short) to replace the Judicial Committee of the Privy Council as Hong Kong's highest appellate court.

As you know, on June 9 the British and Chinese Senior Representatives to the Joint Liaison Group signed a 5-point agreement reached by their experts. Now I was not then in Hong Kong, but I know that Mr Michael Leung, as Acting Chief Secretary, wrote to your Chairman that very afternoon to inform you of the details of this important agreement.

The agreement is a good one for Hong Kong, and a good one for the rule of law in Hong Kong. It guarantees the establishment of a proper court of final appeal in Hong Kong, to be set up on 1 July 1997, with Sino-British co-operation, on the basis of the established principles and practices of the Judicial Committee of the Privy Council and in accordance with the CFA Bill which we introduced into the Legislative Council on 14 June. I hope very much that the Legislative Council will enact the CFA Bill before the current session ends at the end of this month. For far Local and international too long, there has been uncertainty about the CFA. businessmen, and the people of Hong Kong, have asked how the CFA will be set up, when it will be set up and what sort of court it will be. Our agreement with the Chinese side has provided the answers to these questions. No doubt that is why the agreement has been welcomed by the business community, by Hong Kong's major trading partners and according to independent opinion polls by the people of Hong Kong as well.

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