1
Hong Kong
The transition to Chinese sovereignty
Rt Hon. Sir Geoffrey Howe, QC, MP, United Kingdom
In 1898, Britain leased the bulk of Hong Kong from China for 99 years. Now that the lease is almost up, the British and Chinese governments are planning the return to Chinese sovereignty of a city which is ethnically and geographically tied to China, but which in every other way is a world apart.
Sir Geoffrey Howe, a Member of the British House of Commons since 1970, has been Secretary of State for Foreign and
Commonwealth Affairs since
1983.
0092x/11/HG
HONG KONG 1
The return of sovereignty over Hong Kong from the United Kingdom to China in 1997 will be a unique event; nothing remotely like it has ever happened before. It is largely for this reason that the Hong Kong question has given rise to so much debate, with opinions ranging from confidence that the transition will be managed smoothly, to disbelief that such a thing is possible. I welcome this opportunity to explain something of the background, and the work that Britain and China are now do- ing to ensure that Hong Kong can look forward to a secure and pro- sperous future under its new con- stitutional arrangements.
Guarantees won
The foundation of that work is the Sino-British Joint Declaration of 1984, which was the result of two years of intensive, and often dif- ficult, negotiation between the British and Chinese governments. When the draft of that agreement was published it was welcomed in the world's press as a major diplomatic achievement, and in Hong Kong with great relief.
Before that agreement, Hong Kong had faced an uncertain future. Under the nineteenth cen- tury treaties by which Britain had acquired Hong Kong, 92 per cent of the territory had been due in in- ternational law to be returned to China in 1997, without guarantees of any kind (and the remaining eight per cent would have been unviable on its own). The prospect had therefore been that China would simply re-absorb Hong Kong, and that Hong Kong's distinct way of life would come to an end.
What Britain achieved in the negotiations was agreement on very specific guarantees that Hong Kong would continue to func- tion after 1997, for at least 50 years, as a separate entity and in almost every way just as it does now.
There was never any question of independence for Hong Kong. The Chinese had always made this clear and the Hong Kong people themselves had long accepted it. But, short of that, the Sino-British Joint Declaration provides for Hong Kong to enjoy a very high degree of autonomy after it becomes a Special Adininistrative Region of the People's Republic of China in July 1997.
Among the provisions of the Joint Declaration are:
• that Hong Kong will have its own government comprising Hong Kong people, not peo- ple brought in from China; ⚫ that the socialist system and socialist policies will not be imposed on Hong Kong from China; nor will Hong Kong pay taxes to China;
that Hong Kong's capitalist system and its way of life will continue, with all its human rights and freedoms, its laws and its legal system, its own freely convertible currency etcetera, its financial markets, its free port, religious liberties and so on;
that Hong Kong will have automony to govern itself and in most fields to pursue its own policies. Foreign and defence affairs will be the responsib- ility of the sovereign power -China-just as they are now Britain's responsibility. But Hong Kong will nevertheless to able to conduct its own rela- tions with other countries on matters such as trade, culture and civil aviation, and con- clude agreements on these subjects. Hong Kong will be able to maintain a vast range of international links, and will continue to participate in inter- national organizations as it does today.
⚫ that entry into Hong Kong from China will continue to be regulated as at present, in other words, Hong Kong will not be swamped by im- migrants from the mainland.
0092y/11/HG
HONG KONG-2-
This is by no means an ex- haustive list. But it serves to il- lustrate the exceptional nature of the arrangements secured for Hong Kong.
Basis for secure growth
The Joint Declaration deals with virtually every aspect of Hong Kong life. In each case it provides assurance that pre-1997 ar- rangements will continue much as they are now after that date; all its provisions are to remain in force for 50 years. Hong Kong is the only place on Earth that has an interna- tional, legally-binding agreement guaranteeing that it shall remain capitalist until 2047! (And the Chinese, incidentally, have pub- licly said that they do not rule out another 50 years after that.)
The Joint Declaration, by remov- ing much of the uncertainty abuot Hong Kong's future, has underpin- ned a very remarkable improve- ment in Hong Kong's economic for- tunes since 1984. After two poor years in 1982 and 1983 (with low in- vestment, low growth and a col- lapse of both the property market and the Hong Kong dollar) Hong Kong has, form 1984 to 1988, had an average growth rate of over 12 per cent, and the best five-year period for inward investment in its history. It is now the tenth largest trading entity in the world. It has deve- loped strongly as the financial, trade and communcations centre of the Asia-Pacific region. Banks and multinational corporations have flocked to Hong Kong to set up their regional headquarters. The property market has been strong and any visitor to Hong Kong over the past five years will have been struck by the number of new office blocks, hotels and civic buildings under construction. Business confidence, entrepre- neurial flair and vision have rarely been stronger anywhere than they are in Hong Kong today.
This is not to say that 1997 has ceased to be a factor in people's minds. Far from it, as I shall discuss below. But given the very one- sided and negative impressions given by much recent press cover- age, it is important to stress to anyone who does not have up-to- date first-hand knowledge of Hong Kong, that the place is booming; and that, whatever questions re- main to be resolved, there is no shortage of hard-nosed business- men-local, as well as American, Japanese and European-who are sufficiently persuaded by Hong Kong's long-term prospects to in- vest their money there.
Much work remains to be done to ensure that that faith is not misplaced. The Sino-British Joint Declaration was not the end of the story, but the beginning. The task since 1984 for China and Britain, and for Hong Kong itself, has been to implement its provisions. The work of implementing the Joint Declaration falls principally into two areas of activity-the Sino- British joint Liaison Group and the drafting of the Basic Law.