TNAG-2168-FCO40-3105-House-of-Commons-Foreign-Affairs-Committee-inquiry-into-Hong-1990 — Page 167

ANNOUNCED

1990

The Government

Tove Lok

wewahrt

Legislatur

they

Green Paper on Electoral Law

15. The Committee recommended that a Green Paper should be published as soon as possible to canvas views on an electoral law for the elections in 1991 (paragraph 3.12). Details of the proposed arrangements for the 1991 elections were announed by the Chief Secretary in Hong Kong on 21 March The Legislative Council will have an opportunity to debate these proposals when draft legislation is introduced.

16. The Committee took the view that the number of functional constituencies should not be increased. But the Basic Law provides for 50 per cent of the seats in the legislature to be returned by functional constituencies in the first three terms of the legislature up to 2007. It therefore makes sense to move gradually towards that proportion. Moreover functional constitutencies have proved successful in Hong Kong. For these reasons it is proposed that the number of functional constituencies should be increased from 14 to 21 in 1991.

The Chief Executive

17. The Committee recommended that the first Chief Executive should be elected by a democratically constituted Electoral College and that the second and third Chief Executives should be elected by universal suffrage (paragraph 3.18). Article 45 of the Basic Law provides that the ultimate aim is to select the Chief Executive through universal suffrage. We welcome this. The machinery for the selection of the first Chief Executive is one of the points we intend to discuss with the Chinese Government.

Relationship between the Executive and the Legislature

18. The Committee took the view that the Legislative Council should be sovereign and that the Chief Executive should resign if there is an irreconcilable conflict (paragraph 3.22). Article 73(9) of the Basic Law provides for a procedure whereby the legislature can impeach the Chief Executive if he or she refuses to resign when charges of a serious breach of law or dereliction of duty have been found substantiated by an investigation committee chaired by the Chief Justice of the Court of Final Appeal. Other provisions of the Basic Law, while making provision for the accountability of the Executive to the Legislature (Article 64) establish a separation of powers between them. Although the Chief Executive may dissolve the legislature once during each of his terms of office if there is disagreement between them as to certain Bills (Article 50), he is required to resign if the same disagreement persists after a new legislature is elected (Article 52).

British Policy and Actions

British Interests in Hong Kong

19. The Government welcome the Committee's analysis of British economic interests in Hong Kong (paragraph 4.3). Britain has an enormous stake in terms of trade, investment and jobs in Hong Kong's continuing success. Britain's visible exports to Hong Kong are worth more than £1 billion a year. In addition. Britain earns over £1 billion every year from invisible exports. British exports to Hong Kong grew by over 10 per cent in the 1980s. compared to growth of only 8-7 per cent for Britain's exports worldwide. Hong Kong is Britain's largest export market in Asia, after Japan. More than 1,000 British companies have operations there and produce significant returns for the United Kingdom. Because Hong Kong is one of the world's freest economies, it is difficult to put a precise figure on British investment in the territory. But the total gross stock market value of British-owned, controlled or managed companies has been estimated at some £20 billion.

Nationality

20. The Government welcome the Committee's analysis under this heading and agree with their recommendation that assurances should be offered to a significant number of Hong Kong BDTCs in key positions (paragraph 4.19). The increasing rate of emigration among key personnel, both in the public and private sectors, is a trend which the Government take very seriously. In the years 1980-86, the average yearly outflow was about 20,000. In 1989 it was 42,000. This year it is expected to be at least 55,000, many of them key professionals. This growing exodus of talented people poses a real threat to Hong Kong's stability and prosperity in the period before 1997. Many of those who are emigrating do so reluctantly, because it is the only means of acquiring the assurance of a foreign passport. Most of them would remain if such an assurance were available without the need to leave Hong Kong.

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