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process of democratization, but it is worth our attention whether those entrepreneurs and professionals will work with their minds at ease and do not consider emigration.

Progressive changes will ensure the incorporation of the advantages brought by changes without discarding the best features of our existing institutions. Drastic changes may turn the situation better or worse. Entrepreneurs and professionals always harbour doubts. If they do not have confidence in Hong Kong, reinvestment will slow down which will be damaging to the prosperity of the territory. Thus progressive governmental reforms are preferable to drastic changes.

Between prosperity and stability on the one hand and freedom and democracy on the other, we should choose prosperity and stability.

If there is no prosperity or stability in the coming thirteen years, there will not be the fifty years in which we can enjoy a high degree of autonomy with the present life-style remaining unchanged.

Whether China will keep her commitments depends on what Hong Kong people will make of Hong Kong in the coming thirteen years. If prosperity and stability are preserved, Hong Kong people will be allowed to govern themselves and enjoy a high degree of autonomy.

The Basic Law

Sub-paragraph 3 of paragraph 3 of the Joint Declaration states that Hong Kong will be vested with legislative power and the laws currently in force in Hong Kong will remain basically unchanged. Annex I states that 'the laws previously in force in Hong Kong (i.e. the common law, rules of equity, ordinances, subordinate legislation and customary law) shall be maintained, except for any that contravene the Basic Law and subject to any amendment by the Hong Kong Special Administrative Region legislature', and that ‘the legislature may on its own authority enact laws in accordance with the provisions of the Basic Law and legal procedures, and report them to the Standing Committee of the National People's Congress for the record'.

From there we can see that the laws after 1997 should not contravene the Basic Law enacted by the National People's Congress. As far as we know, the Basic Law will only provide that the socialist system and policies shall not be practised in Hong Kong and that Hong Kong's present capitalist system and life-style shall remain unchanged for 50 years.

Sub-paragraph 5 of paragraph 3 of the Joint Declaration points out that rights and freedoms will be ensured by law. The explanatory notes on the Joint Declaration published by the Hong Kong Government states that the rights and freedoms previously enjoyed under the laws of Hong Kong will be maintained by the S.A.R. Government'. There are, however, no explanatory notes in the Joint Declaration issued by the New China News Agency. Whether all of the laws regarding rights and freedoms will be maintained should merit our attention. It is hoped that clarifications will be found in the Basic Law.

As regards freedom of speech and of the press, western countries and communist countries have different interpretations and standards. I hope the Basic Law will clearly stipulate that these freedoms will be in accordance with current habits in Hong Kong.

Hong Kong people attach much importance to the Basic Law and I hope the Beijing Government will consider the wishes of Hong Kong people and study the circumstances in Hong Kong when drafting the Basic Law.

Land Leases

Annex III to the Joint Declaration dealing with land leases states that land leases may be renewed for a period up to 30 June 2047 against payment of an annual rent equivalent to 3% of the rateable value of the property at the date of renewal. Provided the assessed rateable value does not increase greatly from year to year, the rent is considered reasonable.

The document, however, does not mention whether there will be compensation upon resumption of land or the government will resume land at any time upon notification. This is also something about which the people are much concerned.

Mr. Chairman, I support your motion.

DR. THE HONOURABLE KIM Y. S. CHAM (in English):-Mr. Chairman, now with the publication of the White Paper detailing the Draft Agreement on the future of Hong Kong and its annexed documents, the uncertainty over-hanging this city has finally been removed. Regardless whether its contents are to the complete satisfaction of all, this serves as a baseline for us all to plan for our future. The essence of the Agreement is pivoted around the reversion of Hong Kong to Chinese sovereignty by the year 1997. Concluding an international instrument of binding obligations, both parties are committed to the execution of the agreement. Given the stated options, I would commend the agreement for acceptance as the document embodies the essential detailed ingredients whereby we may preserve our present system of economic and social structure.

Constitutional Arrangement

The White Paper lays down the future principle for appointing the Chief Executive of the Hong Kong Special Administrative Region by the process of either election or through consultations. The other key functionary of the post-1997 administration is the legislature, membership on which is determined by the electoral process. The nomination and appointment of principal officers is appropriate in order to tap talents of capabilities and technocratic competence for incumbency in senior civil service posts like those equivalent to the present

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