XN000022-1996-04-26 — Page 6

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The Governor noted the reason why Americans should care what would happen the huge in Hong Kong was a straightforward question of commercial interest - american investment in the success of Hong Kong, the hundreds of American firms, and the over 30,000 Americans who make a contribution to every aspect of lives in the community of Hong Kong.

"I think Hong Kong's continuing success as a two-way bridge from China to the rest of the world, I think Hong Kong's continuance in that role matters enormously to everyone's relationship with China in the next few years, not just the United States.

"I think the relationship between Peking and Hong Kong goes right to the heart of a lot of the issues which are going to decided what sort of country China is in the next generation," Mr Patten said.

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Transcript of Governor's Q&A session

Following is a transcript of the question-and-answer session by the Governor, the Rt Hon Christopher Patten, following his speech at the Hong Kong General Chamber of Commerce luncheon today (Friday):

Question: Your Excellency, I will start the questions (inaudible) unconditional renewal of MFN status for China. That country being a so-called non-market economy, such renewal has to take place annually. Will you also be lobbying for the repeal of the Jackson/Vannick Act which says that such economies have to apply once a year, so that in other words if MFN status were granted it would be of a permanent nature rather than having to go back each year and ask for a further term of 12 months?

Governor: I hope it follows from what I have said that I believe very strongly that turning the economic relationship between China and the United States into an annual battle, a battle which conceivably becomes more difficult in presidential election years - I think it is not without some significance that the last year as difficult as this was 1992 - it doesn't seem to me that that is the best basis for any trading relationship, particularly one which matters so much to the rest of the world, not just Hong Kong.