XN000022-1997-04-28 — Page 2

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Statement by Lady Thatcher

Lady Thatcher held an hour-long meeting with Mr Martin Lee at Government House this (Monday) morning. Lady Thatcher commented after the meeting:

"I was delighted to see Mr Lee. I assured him that my close interest in Hong Kong's affairs will continue beyond the handover of sovereignty in June. I will continue to speak up for Hong Kong's freedoms, its rule of law and its elected legislature. Deng Xiaoping and I agreed in the Joint Declaration that Hong Kong's free way of life should endure for 50 years beyond 1997. The world will be watching closely to see that the Treaty is implemented in full."

End

Modification of resale restrictions on HOS and PSPS flats

The Government proposes to introduce a secondary market in Home Ownership Scheme (HOS) and Private Sector Participation Scheme (PSPS) flats to benefit existing and prospective public rental housing tenants.

A Government spokesman today (Monday) said the new arrangements were recommended in a review of the Home Ownership Scheme conducted by the Housing Authority in 1996.

From the fourth year from first assignment, the owner of a HOS or PSPS will be allowed to resell the flat to an existing or prospective public rental housing tenant at a negotiated price.

The spokesman explained that this would create a form of secondary market in HOS and PSPS flats.

"It will free public rental housing flats for reallocation to people in genuine need because the new owner will be required to surrender his existing public rental flat (if he is a public rental housing tenant), or to forego the right to be allocated a public rental housing flat (if he is a prospective public rental housing tenant)," he said.

He said that existing resale restrictions would also be modified. Under the new arrangements, the purchaser of a HOS or PSPS flat will be able to resell the flat to the Housing Authority at the original purchase price in the first three years from first assignment.