Agreement clinched on passports and CT9

BRITAIN last night announced it had won agreement from Beijing on the long-running dispute over Hong Kong's much-needed new container terminal, CT9, as well as the future status of permanent residents in Hong Kong.

Speaking at the end of lengthy talks with Chinese Vice-Premier Qian Qichen, Foreign Secretary Malcolm Rifkind said Beijing had agreed: To endorse the outcome of negotiations between the successful consortium and the Government over CT9; On preparation of Special Administrative Region (SAR) passports and accepted that permanent residents now in Hong Kong would retain their status after 1997; That the Preparatory Committee Secretariat in Hong Kong would be the conduit for talks with the Government's Liaison Office, although details would be decided by the Joint Liaison Group; and On China's endorsement of air services agreements between Hong Kong, Singapore and South Korea.

The now-defunct Preliminary Working Committee had proposed that permanent residents who had emigrated would have to return to Hong Kong before July 1, 1997, to retain their status.

But Mr Rifkind said: 'Mr Qian said that all those with current permanent residence status would continue to keep it, and he did not qualify this in any way.' No Chinese officials were available for confirmation.

Mr Rifkind said Beijing also had given assurances on how it would issue SAR passports, opening the way for progress on possible visa-free travel to Britain for Hong Kong people after the handover.

'I hope we will reach a conclusion on this matter within two to three months now that Britain has the information it needs about these passports,' he said.