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Foreword
This is the sixth annual report to Parliament on Hong Kong. Its purpose is to keep Parliament informed of the main events affecting the territory in 1990, in recognition of the importance which the Government and Parliament attach to the affairs of Hong Kong.
1990 was a year in which the people of Hong Kong, with characteristic resilience, regained much of the confidence which had been lost following the events of 1989 in China. When I visited Hong Kong and China recently this resilience and sense of purpose was much in evidence. Nevertheless, the people of Hong Kong are understandably anxious about their future. We can help by working more closely with Hong Kong and China to build the foundations of a smooth and stable transition in 1997. Not only is this requirement placed on us by the Sino-British Joint Declaration, but it is also the way to the goal which we all share: a thriving and prosperous Hong Kong after 1997.
The practical work which needs to be done to ensure a harmonious transition has, since 1989, gone too slowly. Partly in an attempt to inject a sense of urgency, I agreed to visit Hong Kong and China in April 1991. I told the Chinese leaders that we were willing to consult China on important Hong Kong matters which straddle 1997, and to take their views into account where possible. But I also made clear the fundamental point that it is the Hong Kong Government that must take the decisions. Part of the answer I received was encouraging: the Chinese agreed that we needed to strengthen work on practical matters under the Joint Declaration, and that the Chinese side was not seeking a veto or joint control of the day-to-day running of Hong Kong. Nevertheless, on the new airport, the most practical manifestation of the new spirit which we would like to see govern our dealings in the run-up to 1997, there was no agreement.
As I write, talks on the airport scheme have been adjourned. It is natural that China should take a close interest in a project of this size and importance. We have, therefore, sought to keep the Chinese Government informed. I hope that China will be willing soon to give the project its support: the necessary private investment in the project is unlikely to appear unless China does so.
The Government have sought to bolster confidence in Hong Kong in other ways too. In July, the British Nationality (Hong Kong) Act became law. It provides for 50,000 key workers in Hong Kong and their dependants to be given full British citizenship without having to leave Hong Kong. The Act has undoubtedly helped to provide reassurance at a time when confidence in the territory was at a low ebb and has demonstrated in a tangible way our strong and continuing commitment to Hong Kong. Some 65,700 people have applied for the 43,250 places available in the first tranche of the scheme-an oversubscription of some 50 per cent.
Another important event in 1990 was the promulgation by China of the Basic Law, which will, when it enters into force on 1 July 1997, give legal effect to the provisions of the Joint Declaration. One aspect of the Basic Law is that it establishes a framework for the further development of democracy in Hong Kong after 1997. Our goal is to see the steady evolution of responsible, constructive and participatory democracy, which will serve Hong Kong well, both before and after 1997. This year's elections will mark an important step forward.
Hong Kong's future success also depends on the development of its own assets. Its superb natural harbour, its well-educated and highly motivated labour force, and its advanced infrastructure place Hong Kong in a unique position to serve both as the engine of economic growth in South China and as an important international and regional financial centre.
1991 will be a year of great importance for Hong Kong. We need to get the chemistry right in our dealings with China. But this can be done: China, too, has much at stake. The prosperity of Canton which, like that of much of southern China, both imitates and thrives on Hong Kong, shows how important Hong Kong's success is to China.
208314 B*
Douglas Hurd
Secretary of State for
Foreign and Commonwealth Affairs
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