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HONG KONG URBAN COUNCIL

Prior to 1997, the representative government of Hong Kong will develop gradually in line with the structure prescribed by the Basic Law. In 1991, 35% of the Legislative Council members will be elected by functional constituencies, another 35% elected by general election while the remaining 30% are made up of appointed and official members. Their term of office will be 4 years. By 1995, there will be no appointed and official members in the Legislative Council. then 50% of its members will be elected by functional constituencies and 50% by direct election. The 1995 Legislative Council election should, with the consent of the British Government, be conducted under the monitoring of the Chinese Government. The members thus elected will be approved by the latter and will continue their office after 1997. Then on 1st July 1997, all Legislative Council members will swear allegiance to the government of the Hong Kong Special Administrative Region. Such arrangement will ensure the smooth transition of Hong Kong's Government.

We are fully aware that Hong Kong is a part of Chinese territory and its sovereignty belongs to China. It is hoped that the Chinese Government will trust the people of Hong Kong and delegate full autonomy to them, so that the pledge of 'one-country-two-systems' can be materialized. To allay the apprehen- sions of the Hong Kong people and to boost their confidence, any provision of the Draft Basic Law that contravenes the principle of autonomy should be modified.

Madam Chairman, with these remarks, I support the motion.

(Mr. Samuel P. W. WONG left the meeting at 3.45 p.m.)

MRS. NELLIE FONG (in English): It is extremely difficult to comment briefly on the Basic Law because of the importance and the depth of the subject matter. Today I have chosen to focus on only three issues Intent, Justiciability and Leadership and Procedures for Election.

Intent

I get the clear impression from reading the draft of the Basic Law that its drafters and the Mainland leaders have concluded that Hong Kong's current system is working well and should continue. The Basic Law must be looked at as evidence of the intention of the Mainland leaders to ensure that the Hong Kong system will continue.

My feeling is that people leave Hong Kong not becuase of the Basic Law, but rather, because of uncertainty. In any major change there is always uncertainty and this can provoke the movement of individuals. Some may prefer not to face the change or decide to have no confidence in the future government, and they make their own decisions. Some may even be taking a temporary absence to get a second passport or to view the change from afar. If Hong Kong prospers, those who leave will return. Alternatively, others will be attracted to Hong Kong by the success.

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In my view, at present, we should not overreact to the movement of people. Hong Kong has always had movements of people both in and out. Those that leave will miss opportunities and those who put their confidence and their efforts in Hong Kong will reap the opportunities that arise. In the meantime, however, there are very important things that should be done. We cannot let ourselves be dragged down by the lack of professionals and skilled workers that emigration has brought about and will bring about even more. We must focus on this very real problem and adjust our educational and training schools to provide for replacement of our losses. In this regard, I would favour an over-reaction if necessary. Hong Kong people have great initiative and I cannot see any problem arising if we are to generate a surplus of trained people.

My recommendation is thus that we not lament the change, or try to pretend it will not happen. My view is that we should be preparing ourselves now to fact our problems and to ensure that we will prosper in the years of transition. A strong Hong Kong is what will ensure that the system survives. Let's make sure we remain strong.

Justiciability

The next point I want to bring out is that the success of a system lies in the certainty of its laws and the effectiveness of their execution. A free-market capitalist system is the result of a combination of behaviors. It cannot be demanded by decree. The basic problem I see in the existing draft of the Basic Law is that phenomenon and policy guidelines are prescribed in the law.

I feel strongly that we need to re-order some of the contents of the draft Basic Law. We must separate the principals for the basic legal structure of the future HKSAR Government from those parts which fall within the area of policy guidelines and which are not intended to be justiciable. Since my work is involved mainly with economic and financial aspects of the Hong Kong system, I hav separated those items in sections 1 to 4 of Chapter V into those parts which I believe should be contained in a recital as policy guidelines and those parts that should be the real legal provisions. My thoughts on this are contained in Appendix I to this speech.

This separation is, in my mind, important. Without it, policy guidelines can unwarrantedly restrain the powers of the HKSAR government. In practical terms, this could restrict its ability to govern effectively, leading inadvertently to the erosion of the high degree of autonomy for the HKSAR Government. That would have much more serious consequences than those which the drafters were trying to avoid when they drafted the law and the gave guidelines the same weights as required matters of law.

Leadership and Procedures for Election

The third item I wish to bring out is the very controversial issue on how the Chief Executive and the Legislative Council are to be chosen. I have always advocated against direct election to the legislature. I continue to be unconvinced