LEADING Hongkong lawyers want China to set up a body empowered to provisionally approve business contracts that span 1997.
Such a body would relieve much anxiety in the Hongkong business community and help pave the way for a far smoother transition of sovereignty in 1997, lawyers told yesterday's Asian Law and Practice seminar on protecting company interests post-1997.
Under the Joint Declaration, contracts should remain valid and protected by the new Hongkong Special Administrative Region government, provided they did not contravene any provisions of the Basic Law.
The problem was, however, the lack of sources for companies wanting to confirm whether contracts were in tune with China's interpretation of the Basic Law.
Both of China's top official on Hongkong affairs, Mr Lu Ping and Prime Minister Li Peng, have made it clear that mainland approval would be needed for large contracts that straddle 1997.
''The approval of contracts is food and drink to China,'' said Mr Will Dennis, a senior partner of Denton Hall, Burgin & Warrens and former British diplomat in Beijing.
