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China 'slow to act' on transition: US report

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AMERICA is becoming increasingly concerned by China's slowness to reach key agreements over Hong Kong's transition through 1997 - particularly those which affect US interests, a new report warns.

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In a State Department document delivered to Congress late last night, officials also warn of 'uncertainties' in the territory's legal and political systems if Beijing, through the Joint Liaison Group, does not permit greater progress to be made.

In a report more strongly worded than had been expected, the US urges China to reach agreement with Britain on allowing the Legislative Council to ride the through-train past 1997; on setting up a Court of Final Appeal before the handover; and sorting out the row over Container Terminal 9.

'The US-Hong Kong Policy Act Report', the first in two years since Congress passed a law requiring government monitoring of the territory's well-being, also informs legislators of growing problems of media self-censorship and looming discontent in the civil service over localisation and possible interference by Beijing.

US-Hong Kong agreements on air services and bilateral investment have made 'slow progress', the report says, and 'remain stymied over questions of format and substance'.

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It says the US also has an interest in maintaining good conditions in the territory for its more than 1,000 businesses there, and is also concerned at keeping access to Hong Kong as a port of call for naval ships.

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