TNAG-2714-FCO40-3920-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1993 — Page 223

SECOND REPORT OF THE

FOREIGN AFFAIRS COMMITTEE

Session 1988-89

HONG KONG

1. This paper contains the Government's initial observations on the report of the Foreign Affairs Committee (HC281-I of 28 June 1989). The report is a valuable contribution to policy on issues of major concern to Hong Kong. It offers a thoughtful analysis of the issues, and makes a series of important recommendations for the administration of Hong Kong up to 1997 and beyond.

2. These observations follow the structure of the Committee's report:

(i) Introduction: The United Kingdom's obligation to Hong Kong.

(ii) The Joint Declaration and the Basic Law.

(iii) Actions within Hong Kong.

(iv) British policy and actions.

(v) Vietnamese boat people.

(vi) Summary of conclusions and recommendations.

(I) Introduction: The United Kingdom's Obligation to Hong Kong

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3. The report rightly draws attention to the unique position of Hong Kong as the United Kingdom's only dependent territory whose people cannot exercise the fundamental right of self-determination. It notes that it was necessary, in the light of the expiry on 30 June 1997 of the lease on 92 per cent of the land area, to reach an agreement with China well ahead of that time for the orderly transfer of sovereignty of the whole territory in 1997 (paragraph 1.6). The Government agree with this analysis of the background to the negotiations with China. The Government welcome the Committee's recognition of the importance of the Joint Declaration which it describes as a remarkable achievement' (ibid). As the report rightly states, the United Kingdom's obligations stem fundamentally from the unique characteristics of Hong Kong and from the provisions of the Joint Declaration (paragraph 1.8). The Government will honour these obligations. They will ensure the continuation of a strong and efficient administration in the territory in the years up to 1997, with the aim of maintaining a stable and prosperous Hong Kong and a steadily improving quality of life. They will continue to work for a smooth and orderly transfer of sovereignty in 1997 and to preserve Hong Kong's unique characteristics and way of life through the full and faithful implementation of the Joint Declaration.

(II) The Joint Declaration and the Basic Law

4. The Government endorse the Committee's view that to tear up or renege on the Joint Declaration and to break off negotiations with China over Hong Kong is not an option (paragraph 2.3). They welcome the Committee's recommendation that the Joint Declaration be retained as the “best and surest treaty base for the future of Hong Kong" (paragraph 2.4). The Government know of no serious argument that it would be better for Hong Kong if the Joint Declaration were abandoned. Certain consequences flow from this. Our task now is to ensure that the safeguards in the Joint Declaration remain real and credible and that the undertakings given in the Joint Declaration are honoured. That is why the Government took the initiative in calling for a resumption of the work of the Joint Liaison Group in September. There must be a continuous dialogue with the Chinese Government about all aspects of Hong Kong's future. The Chinese Government have repeatedly reaffirmed their commitment to the Joint Declaration. We welcome that reaffirmation.

5. We have taken careful note of the Committee's detailed recommendations in respect of the provisions of the draft Basic Law (paragraphs 2.3, 2.5, 2.6, 2.7, 2.8, 2.12 and 2.14). The Joint Declaration provides that the basic policies of the People's Republic of China regarding Hong Kong as stated in the Joint Declaration will be stipulated in the Basic Law. The Government have a legitimate right, as joint signatories to the Joint Declaration, to require that it should do so fully. The Basic Law will establish the basis for Hong Kong's

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