XN000022-1996-03-28 — Page 3

- 2 -

On the progress of the localisation of laws, Mrs Chan said the Government was reasonably confident that the programme would be completed in time with the Government hoping to obtain agreement with the Chinese side soon for the introduction of the localising Bills of 12 remaining items before the end of this year.

However, despite the achievements, the Chief Secretary cautioned that much remained to be done in two important issues.

She said: "In respect of mutual legal assistance between Hong Kong and mainland China, there is increasing concern about the need for legal and practical arrangements to be put in place, and much work remains to be done.

"In respect of the adaptation of laws, our programme of submitting proposals to the Chinese side should be completed this year, but there is an urgent need for experts of the two sides to meet to discuss the modalities for achieving the necessary adaptations."

Mrs Chan said she was confident that these outstanding problems could be resolved if they were studied in a spirit of co-operation, and without delay.

Turning to a related development, Mrs Chan said Hong Kong's interests would be best served by allowing the current Legislative Council to serve its full four-year term.

The Government's commitment is clear, she said. "That commitment is to work with the present legislature of Hong Kong, elected freely and openly by almost one million voters in 1995.

"We are now in the final and crucial stage of our transition. More than ever, Britain, China and Hong Kong need to co-operate in a realistic and pragmatic manner to resolve the remaining transitional issues so that the future Special Administrative Region can get off to a good start.

"The Civil Service plays a crucial role in the good governance of Hong Kong and in securing a smooth transition. It can only do so if it remains politically neutral and act in accordance with the law.

"The Civil Service is loyal to its leaders and loyal to the community it serves. This is so now and it will be so after 1997,"

End