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(a) the agreement is fully consistent with the Joint Declaration; and that

(b) the agreement safeguards the best long-term interests of Hong Kong.

At all stages of the negotiations, the Hong Kong Government is fully involved, as it is in all aspects of the work of the JLG. And in the process, we take full account of views expressed by this Council and the community.

Where the implementation of an JLG agreement requires legislation, draft legislation will of course be put before this Council. And this Council has a well established track record of performing its scrutinising role responsibly and with vigour.

But to repeal or make fundamental amendments to laws enacted to implement JLG agreements would have serious consequences. In effect, it would mean negating the work of the JLG, and unstitching the way forward that had been painstakingly agreed on important transitional issues. Progress in the implementation of the Joint Declaration would be severely affected. Indeed, the whole basis for a successful transition would be called into question. All this would be extremely damaging to Hong Kong, and to confidence in Hong Kong, particularly as we enter into the final 20 months of the transition. I am sure that Members of this Council recognize the dangers of proceeding down this road.

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At the end of the day, any legislature or executive is credible only if it performs responsibly, and is seen to be acting in the overall interests of the community it serves. As the Governor pointed out in his Policy Address, the interests of the people of Hong Kong must be paramount. He made it clear that he would not shrink from refusing assent to legislation if it were his honest view that this course of action would be in the best interests of Hong Kong. I very much hope, of course, that we will not get ourselves into a situation where the Governor has to consider making use of his constitutional powers

Finally, I would like to turn to the amendment proposed by the Hon Lee Cheuk- yan. The first part of this amendment seems to me to do no more than state what is generally recognised to be the current constitutional position, subject of course to the The second part relates to the limitation imposed by the Royal Instructions. amendment to the Basic Law by the National People's Congress. This of course is a matter for the Special Administrative Region Government and Central People's Government, not the Hong Kong Government. I therefore do not propose to comment on it.

End/Wednesday, October 18, 1995

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