TNAG-2788-FCO40-4027-Chinese-policy-on-Hong-Kong-an-overview-1993 — Page 25

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straddling 1997; and to handle any other matters assigned to it by the Standing Committee of the National People's

Congress. Qian said that the PWC would hold plenary -sessions at least twice a year. It would not be a "second

power centre" or "shadow cabinet". It would be disbanded when a Preparatory Committee was established (Hong Kong

press 17 July 1993).

E6.

In an interview with Bauhinia (April 1993) Qian

Qichen said that the establishment of a preparatory work organ for the SAR Preparatory Committee had been suggested by various people in Hong Kong in order to cope with the large amount of preparatory work needed. The task of the Preparatory Work Committee would be to research how convergence with the Basic Law could be accomplished in the political, economic, legal, social and cultural/educational fields and to make proposals; its proposals on the means of forming the first SARG and the SAR's first LegCo would be submitted to the SAR Preparatory Committee [to be established in 1996]. (TKP 31 July 1993).

ECONOMIC IMPLICATIONS

Fl.

In an interview with a Hong Kong TVB (published in TKP 4 January 1993), Lu Ping repeated that all contracts straddling 1997 involving responsibilities and obligations for the SARG must be discussed with the Chinese side. He added that legally any contracts signed by the British government would not be effective beyond 30 June 1997. China regarded this as a question of sovereignty. Lu said

in the event of confrontation Hong Kong would find the going very tough both politically and economically.