XN000022-1995-07-12 — Page 35

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Both Vice Premier Qian and Director Lu were interested in the Hong Kong economy and we discussed various aspects of the economy and prospects for the immediate future.

On transitional matters, we discussed briefly the establishment of the Preparatory Committee and the selection of the Chief Executive (Designate) who would nominate the principal officials. I referred to the commitment we had already made to cooperate fully with both the Preparatory Committee and with the Chief Executive (Designate) and his team once they were appointed. We agreed that there should be co-operation between the two sides on these transitional issues, although the form of co-operation will need to be discussed in detail.

I reaffirmed our readiness to continue to work closely with the Chinese side to complete all outstanding preparations to secure the full and faithful implementation of the Joint Declaration and the Basic Law. And both Vice Premier Qian and Director Lu assured me that the Chinese Government would do everything possible to ensure a smooth transition, and maintain confidence in Hong Kong.

At the end of the discussions, we agreed that there should be more contact between senior officials of both sides. Indeed, Director Lu and I agreed that we ourselves should be in regular contact. I came away from these meetings very encouraged about the prospects for more positive co-operation between the two sides. I see the visit as an important first step in enhancing mutual understanding and co- operation in the run-up to 1997. I hope that on the basis of this visit, it will be possible for us to establish a more trusting relationship which will be conducive to resolving issues of mutual concern.

I understand that some Members have expressed reservations that the visit was not announced in advance; and that this might generate misunderstandings on the part of the community. Let me assure Members that my meetings with Vice-Premier Qian and Director Lu were not negotiating sessions. The sole purpose of this visit was to provide an opportunity for us to get to know each other better and to open up a channel of communication to enhance contact between the two sides. There were no secret deals; no open deals; in short, no deals at all. Such contact is in fact long overdue. I believe the community feels that very strongly. Both the Governor and I are delighted that the visit has taken place. As I have already said, we hope that the visit will help in the process of greater co-operation between the two sides in the best interests of the people of Hong Kong.