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On our part, we are committed to co-operate closely with the Committee. Indeed, the British and the Chinese sides have agreed that the Hong Kong Government's Liaison Office and the Preparatory Committee Secretariat, including its Hong Kong Office, could begin to liaise. As I explained to this Council on previous occasions, our Liaison Office will co-operate with the Preparatory Committee on the basis of three established parameters. I will not repeat our basic principles here.

In addition, we are committed to openness and transparency in our dealings, with the Preparatory Committee, and will account to this Council and the public for our actions.

When the Chief Executive (Designate) is in place, we will likewise render immediate and practical co-operation.

Mr Leung's motion also deals with the question of a Provisional Legislature. The Hong Kong Government's position on this question is clear and consistent. The current Legislative Council has been elected through open and fair arrangements which are fully consistent with the Joint Declaration and the Basic Law. These arrangements meet the community's wish for credible and representative institutions which are capable of transcending 1997. As the British Prime Minister said just a week ago, "those elected by the people of Hong Kong in record numbers should be allowed to serve their full four-year term. That is what Hong Kong people wish to see. That is what the world wish to see." In that way, we will have an experienced legislature in place on 1 July 1997 which commands the confidence of the community. This is the best way to avoid confusion or disruption in our legislative affairs.

For the above reasons, we do not accept that there is any need for new arrangements in 1997.

I would now like to turn to two different but closely related issues: the formation of the first and subsequent SAR Legislature, and the selection of the first and subsequent Chief Executive. The relevant methods and procedures are already prescribed in the Basic Law and the Decision of the National People's Congress adopted on 4 April 1990. Implementation of these provisions, or amendments to these provisions, will be a matter for the Chinese Government and the future HKSAR Government. I would, therefore, only make one statement of fact. Article 45 of the Basic Law provides that "the ultimate aim is the selection of the Chief Executive by universal suffrage upon nomination by a broadly representative nominating committee in accordance with democratic procedures". Article 68 of the Basic Law provides that "the ultimate aim is the election of all the members of the Legislative Council by universal suffrage."