TNAG-2168-FCO40-3105-House-of-Commons-Foreign-Affairs-Committee-inquiry-into-Hong-1990 — Page 253

R

CONFIDENTIAL

056350

MDHOAN 8091

CONFIDENTIAL

FM FCO

TO IMMEDIATE HONG KONG

TELNO 897

OF 02170OZ MAY 90

AND TO IMMEDIATE PEKING, UKREP JLG HONG

HILD

RECEIVED IN REGISTRY

09121

16 APR 1990

DESK OFFICER

INDEX

PA

DIE HONG KONG

REGISTRY

Action Taken

SECTION 3 OF 4

MIPT: FAC REPORT ON HONG KONG

RELATIONSHIP BETWEEN THE EXECUTIVE AND THE LEGISLATURE 16. THE GOVERNMENT HAVE NOTED THE COMMITTEE'S RECOMMENDATION 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 CHARGED WITH SERIOUS BREACH OF LAW OR DERELICTION OF DUTY. 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 HIS TERM 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 IF ELECTED (ARTICLE 52). BRITISH POLICY AND ACTIONS

BRITISH INTERESTS IN HONG KONG

17. THE GOVERNMENT WELCOME THE COMMITTEE'S ANALYSIS OF BRITISH INTERESTS IN HONG KONG (PARAGRAPH 4.3). AS THE COMMITTEE RIGHTLY POINTS OUT, IT IS AN ILLUSION TO SUGGEST THAT BRITISH ECONOMIC INTERESTS ARE SOMEHOW WITHDRAWING FROM HONG KONG. QUITE APART FROM OUR MORAL DUTY TO MAINTAIN THE PROSPERITY AND STABILITY OF HONG KONG UP TO 1997 AND TO SECURE A SMOOTH CHANGEOVER IN THAT YEAR, BRITAIN HAS AN ENORMOUS STAKE IN TERMS OF TRADE, INVESTMENT AND JOBS IN HONG KONG'S CONTINUING SUCCESS. HONG KONG IS ONE OF OUR LARGEST OVERSEAS MARKETS. OUR TOTAL TRADE WITH IT AMOUNTS TO MORE THAN PDS STG 4 BILLION A YEAR. HONG KONG IS OUR LARGEST EXPORT MARKET IN ASIA, AFTER JAPAN. OVER 1000 BRITISH COMPANIES HAVE OPERATIONS THERE AND PRODUCE SIGNIFICANT RETURNS FOR THE UK. PUTTING A TOTAL FIGURE ON BRITISH INVESTMENT IN HONG KONG IS DIFFICULT. BUT THE GROSS STOCK MARKET VALUE OF BRITISH-OWNED, CONTROLLED OR MANAGED COMPANIES HAS BEEN ESTIMATED AT SOME

PDS STG 20 MILLION.