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Mr F V M Mkandawire (Malawi): Well, I think it is, according to the Basic Law, it says a socialist system. If the socialist system is the Communist Party, then Hong Kong should not form a communist party or a socialist party. I think that is the only way you can safeguard your autonomy.

President: I think Mrs Chan would like to respond to that.

Chief Secretary: Can I make the first point and that is that I personally believe that it is entirely possible to have one country, two systems. And the Basic Law and the Joint Declaration, indeed, lay out the foundation upon which you will practise that concept of one country, two systems. In particular, these two documents make it quite clear that Hong Kong will practise a system that is totally different from the system prevailing in Mainland China.

Of course everybody knows that in Mainland China the system is a socialist system. But the Basic Law and the Joint Declaration make it quite clear that the socialist system will not be practised in Hong Kong and that the capitalist system in Hong Kong will continue to exist both before 1997 and after 1997. And the foundation and the framework for that one country, two systems for underpinning the capitalist system are all very clearly laid out in these two documents and I have just given a very brief outline of the institutions that are already in place or will be in place before 1997, in order to ensure that our capitalist system and our freedoms and our way of life can continue after 1997.

Mr Wilson Tuckey (Australia): Mrs Chan, you made passing reference to the actions of the US Government in particular in recognising both the Joint Declaration and the Basic Law in their own legislation. Have you a view on whether other foreign countries, particularly those associated with the Commonwealth Parliamentary Association, were they to take similar action, particularly in the next 12 months, whether that would be beneficial to your prospects for the future?

Chief Secretary: I am not sure whether the Honourable Delegate is referring specifically to the US-Hong Kong Policy Act?

Mr Wilson Tuckey (Australia): Yes, I think I am.

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