TNAG-1754-FCO40-2474-Future-of-Hong-Kong-Parliamentary-debates-1988 — Page 225

JUL 01 '98 14:52 HKGO, LONDON FAMO) 498-1964

Czę

ADP GTS 30

P.31-81

P.4

FRIDAY, JULY 1, 1988

MAKING

FANNY WONG (ORIENTAL DAILY NEWS IT IS A QUESTION ON DEFENCE COST. IS IT TRUE THAT THE BRITISH GOVERNMENT WILL NOT CONSIDER ANY FURTHER CONCESSIONS TO THE NEW OCA. SECOND, DESPITE SOME LEGISLATIVE COUNCILLORS VOTE AGAINST THE NEW PACT, ISN'T IT TOTALLY UNFAIR TO HONG KONG THAT THE BRITISH GOVERNMENT SHOULD IMPOSE ITEMS SUCH AS VAT OR EVEN SALARY TAX IN THE OLD AGREEMENTS, THAT WE HAVE TO PAY FOR THAT? ISN'T IT TIME NOW THAT YOU SHOULD CONSIDER DROPPING OUT THOSE ONE-OFF PAYMENT FOR THE OUTSTANDING BILL?

LORD GLENARTHUR: CAN WE TAKE THE DCA WHICH I THINK IS THE

MAIN BURDEN OF YOUR QUESTION? THE FACT IS THAT THE AGREEMENT WHICH HAS BEEN ACHIEVED RESULTS FROM A LONG PERIOD

NEGOTIATIONS, AND VERY TOUGH NEGOTIATIONS THEY'VE BEEN. WE NOW HAVE THAT AGREEMENT APPROVED BY EXCO AND IT NEXT GOES TO THE FINANCE COMMITTEE OF LECCO AND I HOPE THAT THEY WILL SEE IT FOR WHAT IT IS, AND WHAT IT IS

THE BOST AGREEMENT THAT COULD BE REACHED BETWEEN THE TWO SIDES.

HOPE ALSO THAT YOU WILL REALISE THAT THE UNITED KINGDOM HAS AGREED 70 PAY HIGHER SHARE AT A TIME OF INTENSE PRESSURE ON OUR DEFENCE BUDGET WORLDWIDE. SO THAT REALLY IS THE IMPORTANT THING, THE AGREEMENT HAS BEEN ACHIEVED, THE NEGOTIATIONS HAVE BEEN TOUGH, NOW THE IMPORTANT THING IS FOR IT TO GO IN PRONT OF THE FINANCE COMMITTEE OF LEGCO.

2ND ADD GIS 30

FIRDAY, JULY 1, 1988

FANNY WONG: BUT ISN'T IT UNFAIR FOR US TO PAY FOR THE VAT AND THE SALARY TAX FOR THE OUTSTANDING BILL? ISN'T IT UNFAIR FOR US BECAUSE FOR SALARY TAX, HONG KONG CIVIL SERVANTS DON'T GET ANY SALARY TAX FROM THE HONG KONG GOVERNMENT?

LORD GLENARTHUR: WELL, THAT MIGHT BE A POINT OF VIEW, BUT VARIOUS ELEMENTS IN THE FINANCIAL ARRANGEMENTS, PERHAPS EVEN MORE WIDELY THAN THAT SEEM TO BE UNFAIR, BUT I THINK YOU MUST ALSO BEAR IN MIND THAT WHEN IT COMES TO SOMETHING LIKE DEFENCE COSTS AGREEMENTS HONGKONG HAS FOR LONG PAID ITS SHARE, PAID A SUBSTANTIAL AMOUNT AND THOSE ARRANGEMENTS HAVE BEEN VALID NOW FOR MANY YEARS.

WHAT WE'VE GOT IS A NEW AGREEMENT: WE MUST GIVE THAT AGREEMENT THE OPPORTUNITY TO WORK. I BELIEVE THAT IT'S A FAIR AGREEMENT AND I HOPE THAT WHEN IT GOES IN FRONT OF THE LEGCO FINANCE THAT IT WILL BR ENDORSED AS IT HAS BEEN BY EXCO.

FANNY WONG: SO THERE WILL BE NO FURTHER CONCESSIONS?

LORD GLENARTHUR: WELL, AN AGREEMENT HAS BEEN REACHED.

MORE.

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