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Following is the transcript of Chief Executive, Mr Tung Chee Hwa's media session in Beijing this (Saturday) afternoon (English part):

Reporter:... the actual timing of an agreement with Disney. How do you feel about Shanghai ... they feel they can compete with Hong Kong for a park?...

Chief Executive: We have signed the letter of intent with Disney and of course we are all delighted if Disney can come to Hong Kong. But let us not underestimate the difficulty of the negotiation as we move forward. I will obviously try to do it as rapidly as possible. It will take some time. Insofaras Shanghai is concerned, you know, America has 270 million people and they have two Disneys. Well, there is 1.2 billion people here. So I would not rule out the possibility of two Disneys. Of course, it is up to Disney to decide what they want.

Reporter:...

Chief Executive: I had the opportunity to talk to the leaders about the Court of Final Appeal decision and that they concurred very much with the National People's Congress Standing Committee Legal Affairs Commission 's statement, and then I think the matter, as far as that side is concerned, is now come to a close.

Reporter: What's the follow-up action now?

Chief Executive: Well, you know there is a taskforce in Hong Kong, which is now studying the impact as to how many people are involved, what if they do come, what is the impact in every possible way on Hong Kong community. When we complete the study, we will decide how to go forward.

Note: please also refer to the Chinese transcript which will be issued later.

End/Saturday, March 6, 1999

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