TNAG-1397-FCO40-1869-Future-of-Hong-Kong-Basic-Law-1985 — Page 254

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because they do not understand the process of and the intention behind the drawing up of the Constitution. There are two implications in formulating Article 31 in the Constitution

First, this article is specially designed for resolving the

problems of Taiwan, Hong Kong and Macau. In a report on amending the draft Constitution in 1982, Mr PENG Zhen said, "As pointed out by Mr YE Jianying, the (then) Director of the NPC Standing Committee, on the eve of last year's National Day, after the peaceful reunification with Taiwan, Taiwan can become a special administrative region and enjoys a high degree of autonomy.

The autonomy includes the maintenance of the current social

and economic systems, the present life-style and the existing

economic and cultural relationships with foreign countries.

In consideration of this special need, the amended draft

Constitution provides that 'the State may establish special

administrative regions when necessary, and the systems to be

instituted in special administrative regions shall be prescribed

by law enacted by the National People's Congress in the light

of the specific conditions.' We stand firm on matters of

principle such as maintenance of sovereignity, unification and

territorial integrity. Meanwhile, great flexibility is also

given to the execution of specific policies and measures to

take full consideration of the actual situation of Taiwan and

the wills and wishes of the people of Taiwan and of various

quarters. This is our standpoint when handling such kind of questions." At that time, the public opinion of Hong Kong and

Macau held that Article 31 of the Constitution could solve the

problem of both Hong Kong and Macau. Mr PENG Zhen's report only related to Taiwan and nothing was said about Hong Kong because

it was not proper to make such an express statement then since China and Britain had just begun negotiations on the Hong Kong

issue.