TNAG-2667-FCO40-3864-Hong-Kong-Civil-Service-1993 — Page 33

11-MAR-1993 11:34

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with them while the Chinese Government will offer assistance.

Set up a single and independent customs authority

Q:

A:

The customs authority is an organisation that carries symbolic meaning. It is difficult to imagine that there will be two different customs authorities within one country after 1997. Will HK's Customs and Excise Department be reorganised or dismantled, and will there be procedural changes?

As regards the question of customs, it must first be made clear that the HK SAR is an independent tariff zone. An independent tariff zone should have an independent customs authority. So the HK SAR customs authority will not come under the establishment of the PRC customs authority. Their relationship is not that of one leading the other. The PRC customs authority will not interfere with the HK SAR's customs authority. The two will work on a co-operative basis, just as they are done now. They will hold discussions whenever the need for mutual co-operation arises. The current practices of the HK customs will not change, and there cannot be any changes. What have been done in the past will remain so in the future.

A point has to be raised here. The head of the SAR's customs department must be filled by a Chinese national. As regards "Chinese national", it will never be someone deployed from Peking or Guangdong. Instead, he will be chosen from among HK's permanent

residents.

Pensions are protected by laws

Q:

A:

Civil servants' pension fund will be a burden for the future SAR Government. What do you think about this matter?

We have repeated many times that after 1997, all HK Government servants' pensions would be shouldered by the SAR Government in accordance with the original arrangements and the amount of payments would not be less than originally set. This has been promised by Chinese Government in the JD and the BL and we must abide by it. The SAR Government of course has to abide by it. Your pensions are protected by laws. You can put your heart at ease. Of course, this will probably be a burden on the SAR Government's coffers but civil service pensions should be fully budgeted for in the SAR Government's expenditure estimates.

Therefore, we also support the setting up of a civil service pension fund by the HK Government before 1997. We have raised the matter at the JLG. The British side have not said that it is completely impossible. They are considering it. The two sides still have to negotiate on how to set up this pension fund and how much should be