XN000022-1996-05-23 — Page 16

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Prime Minister's reply to letter by business groups

Following is a letter by the Prime Minister, the Rt Hon John Major, in response to the views expressed by seven business groups fowards the Governor:

Dear Sirs,

I was surprised to receive your letter of May 20. I have to say that I find your criticisms misplaced.

The Governor's visit to North America seems to me to have been a formidable success. In 11 speeches, 13 press briefings and dozens of other meetings with Government leaders, including President Clinton and Prime Minister Chretien, the not least the Governor vigorously promoted and defended Hong Kong's interests interests of the business community which you represent.

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In Canada, the Governor argued hard for visa free access for SAR passport holders. As you know, freedom of movement is vital to your own business activities. While he was there, the Canadian Government expressed its willingness in principle to grant visa free access.

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In the United States, the Governor made the case the Hong Kong case - as forcefully as he possibly could for MFN renewal. It is hard to think of a decision more vital to the interests of your members.

In all his talks and meetings the Governor set out the reasons for his optimism about Hong Kong's future. He spoke of the talents and resilience of Hong Kong people. He paid tribute to their entrepreneurial flair. He stressed how, since 1984, Hong Kong had proved the doomsters wrong.

But throughout his trip, the Governor had to tackle serious scepticism about Hong Kong's future. He was repeatedly asked about the Joint Declaration and the future of the rule of law in Hong Kong. I notice that neither are mentioned in your letter. He was asked about the future of the Legislative Council. About the civil service. About the judiciary. In short, he was asked sceptical questions which were triggered directly by recent statements by Chinese officials and members of the Preparatory Committee, statements which have seriously damaged confidence overseas in Hong Kong's future. The Governor has been doing his best to put things right.