XN000022-1996-03-15 — Page 3

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Transcript of Governor's media session

Following is the transcript of the media session by the Governor, the Rt Hon Christopher Patten, after opening the Wong Chuk Hang Complex for the Elderly this (Friday) afternoon:

Question: About yesterday's decision made at the JLG expert talk, do you feel that Britain has implicitly given the veto power to China to veto the next budget?

Governor: No. Let's be absolutely clear what the position is. The transfer of sovereignty takes place after three months of the next financial year. Now there are two choices for us in Hong Kong, and I think people had better face up to which choice they want to make. First of all, we could have a budget for three months and then another budget after July 1, 1997. Now if that happens, there will be uncertainties about people's tax rates; there will be uncertainties about the provision of services, and frankly I don't think it would be very encouraging for the financial markets which would be concerned that there wasn't continuity in our financial arrangements through 1997. So we could have a budget for three months and then another budget for nine months. Or we can try to have a consensus between the present Hong Kong Government and those representing the future Hong Kong Government to have a twelve-month budget, a proper budget for Hong Kong. What we are working for is a consensus and by the time we make the most important decisions, the leading players on the other side of the table will of course be the Chief Executive (Designate) and his or her team of senior officials (designate).

When people talk about veto, what do they really mean? They mean that if either the future Hong Kong Government or the present Hong Kong Government or the Legislative Council or the community doesn't like the look of our twelve-month budget next Spring, then there won't be one. That's perfectly correct. Either side could walk away from the table. The community could give it the thumbs-down. But at the end of the day, the Legislative Council, don't forget, have to vote for it, yes or I think if people walk away from the idea of a twelve-month budget, the community will suffer. I don't think it would be a sensible way of proceeding.

no.

Question: Sources...