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S.A.R.'s share should not be deposited in banks incorporated in Hong Kong. Instead, a capital works reserve fund should be set up to pay for the major public projects that go beyond 1997 such as a cross-harbour bridge, the second airport and container terminal etc. All these projects take a long time to develop and are of great importance to the long-term development of the economy and society of Hong Kong.
2.7 On consultation in respect of and the possibility of amendment to the agreement
The Introduction to the White Paper states that as it is normal with international agreements negotiated between two countries, there is no possibility of amending the draft agreement once it is initialled. It also reminds the people of Hong Kong rather threateningly that the alternative to acceptance of the present agreement is to have no agreement. Meanwhile, the people are asked to comment on the White Paper as much as possible. I think this is rather contradictory. I also note with regret that the people of Hong Kong were not allowed to participate in the negotiations. Though I have good faith that both the Chinese and British governments are trying their best to maintain Hong Kong's stability and prosperity, if the agreement could pool the wisdom and ideas of the Hong Kong people, its implementation would be more smooth. Following is my suggestion:
Suggestion No. 11
After the consultation and presentation of opinions, and without violation of the spirit and contents of the agreement, suggestions that may more clearly, systematically and precisely define the various provisions should be added in the final agreement, or as explanatory notes or annexes. For example, paragraph 3, Section VII of Annex 1 to the agreement states that 'The Hong Kong dollar, as the local legal tender...' If it is amended to read "The Hong Kong dollar, as the only circulating local legal tender...', or an explanatory note to that effect is added, then people's confidence in the status of the Hong Kong dollar will be enhanced.
Conclusion
In principle, the draft agreement on the future of Hong Kong is acceptable. We should accept it with confidence, and consider the provisions with a positive attitude. We should view it from the standpoint of the Hong Kong Chinese. We should raise our opinions, but should not split hairs over minor points. There is no reason why we should, for want of confidence in China, deny China's sincerity in maintaining the stability and prosperity of Hong Kong. Nor should we deny the positive meaning of the changes envisaged in the agreement for the same reason. Nevertheless, we should not suppose that the agreement will automatically bring us a bright future. In fact, the future of Hong Kong lies mainly in ourselves. The Chinese and British governments have merely provided us with the basic conditions for achieving stability and prosperity. It all depends on the efforts of the people of Hong Kong whether prosperity and progress could be attained. Let us affirm our role of the time with a positive attitude. Mr. Chairman, I support the motion.
(Mr. Peter C. K. CHAN arrived again at 4.54 p.m.)
(Mr. Lawrence H. L. FUNG left at 5.15 p.m.)
MR. LAM CHAK-PIU (in Cantonese): Mr. Chairman, the Sino-British Joint Declaration provides for the implementation of the concept of 'one country, two systems', resumption of sovereignty and autonomy of Hong Kong as put forward by the Chinese Government. It also sets out specific policies and detailed arrangements for the future of Hong Kong. I appreciate China's insistence on the resumption of sovereignty as well as her rational policy in tackling the problems of Hong Kong. In the hope that Hong Kong will pass beyond 1997 in stability and well govern itself, I wish to propose the following: (i) The people of Hong Kong should actively participate in the drafting of the Basic Law, bearing in mind that with the withdrawal of the British Government, it will be the constitution of the Hong Kong Special Administrative Region. The committee responsible for the drafting of the Basic Law should include representatives from Hong Kong. The list of its members, the proceedings and all relevant information should be made public and the committee should consult people of the various strata in Hong Kong in the course of drafting the Basic Law. While agreeing that the Basic Law should set out the policies in regard to Hong Kong under the framework of the Joint Declaration, I am of the opinion that it should be concise, mainly providing that Hong Kong shall be a Special Administrative Region of China and that the present system shall remain unchanged for 50 years, and stipulating the principles regarding the organization of the future government and the civil rights to be introduced. To be flexible in dealing with finance, land, civil aviation and operation of the judiciary, the people of Hong Kong should be vested with the power to enact laws on these matters without intervention by the National People's Congress, as long as they do not contravene the Basic Law. This is to ensure that the laws of Hong Kong will be adjusted according to circumstances.
(ii) As some of our economists have pointed out, the provisions that starting from next year, part of the premium income obtained from land transactions will go to the future Hong Kong S.A.R. Government and that renewal of land leases will be upon payment of an annual rent equivalent to 3% of the rateable value of the property instead of payment of a premium will result in a decrease in income for the Treasury, possibly leading to large increases in direct tax. Being a member of the working class, I am
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