XN000022-1996-09-14+15 — Page 3

2 -

Question: Mr Hanley, how confident are you that Sino-British relations are now in fact on track again ... ?

Mr Hanley: It is very important indeed for the people of Hong Kong that the relationship between the United Kingdom and China is good. And I think that over the last year or so we have made very great progress, through the Joint Liaison Group, through ministerial discussions, through the actions of the Government of Hong Kong too. I think that proves that the relationships are good and constructive. What I am particularly pleased about is that China does seriously recognise the benefit to China and to the wider world that Hong Kong, a successful vibrant Hong Kong with the greatest degree of autonomy, with the greatest degree of continuity of the civil service, that all of that is vital, as I say, not just for Hong Kong but for the wider world.

And I am pleased that the Chinese also recognise that the choice of the Chief Executive is such a sensitive and important point in making sure that the confidence in Hong Kong remains.

The United Kingdom has, not a historical interest in Hong Kong, it has a vast future interest in Hong Kong. And that is why we are investing so much in our consulate general, that is why a thousand British companies will continue, that is why our interest not only under the law will continue until the year 2047 but why our interest in Hong Kong will last for all time.

Question: Mr Hanley, why, last night, did you say that the problem of the legal basis of the consulate general should be resolved? What is the problem?

Mr Hanley: Yes, but there is no problem. What it is is that a consulate general needs a legal basis and I raised that last week in Peking and I am very pleased indeed that the Chinese are looking seriously at the issue and I expect a resolution before too long. They recognise the investment we are putting in but it needs a legal basis, just as with other countries from all around the world are wanting to discuss the legal basis for their Consulates general here in Hong Kong, and that will be achieved before too long.

Question: What are the details? Is that something related with the relationship with Taiwan?

Mr Hanley: No, it is a normal contract, a contractual arrangement which needs to be worked out so that we can serve the interests that our consulate general will undertake. It will be a very big job that is going to be carried out by the consulate general, that is why it is a very big building, that is why it is a tremendous investment and it is important that the legal basis is formulated and I expect that before, as I say, just a few weeks.