ENG-1982 — Page 10

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The Constitution of Hong Kong: The Hub of the Wheel of State

A personal view by John Griffiths, Q.C.

215

CHEFF ILYE

智

In the year that the Commonwealth Law Conference is held in Hong Kong, the Attorney General contributes an analysis of the legal structure of Hong Kong, and the reasons for

its success.

HONG KONG has been seen through the eyes of many different commentators in as many different colours. All, from an American President, to academic writers, journalists and British politicians, have tried to encapsulate its essence in varying epithets, slogans and titles:

'An Economic Nature Reserve,' 'Borrowed Place Living on Borrowed Time,' 'A Shop Window of the Free Way of Life in Asia,' 'Capitalist Paradise,' 'A Living Fossil of Early Imperial Government,' 'A Rumbling Volcano,' 'A Shopper's Paradise,' 'A Commercial Miracle,' 'Emporium of the East,' 'The Home of Laissez-Faire." The territory's success story is now well known. The barren island off the southeast coast of China whose acquisition amused Queen Victoria and annoyed Palmerston, devoid of natural resources, shattered in 1941 by war, inundated since then by successive waves of refugees, has survived all. Propelled by the work-ethic and industry of its inhabitants, and the skill and flexibility of its entrepreneurs, given by its Government social and financial stability as well as the necessary ambience and infrastructure, it has thrust itself into the very front ranks of commercial and trading centres, and indeed of trading nations.

The figures speak for themselves: Hong Kong is now the third largest container port, not just in Asia, but in the world; its Gold and Silver Exchange has become the world's third largest gold-dealing centre; the presence of 128 licensed banks, including the giants from every leading and indeed secondary financial nation, has made it the financial capital of Asia and exceeded only by New York and London as a banking and financial centre. In the economically turbulent decade throughout the world to 1982, the average annual growth of the gross domestic product (GDP) in Hong Kong, in real terms, was just over 9.6 per cent - so the economy expanded two and a half times. The real income of the people per head doubled over those 10 years. Government expenditure trebled in real terms, notwithstanding that it was met from fiscal revenue entirely and not from reserves, which continued to accumulate despite a maximum tax upon wages and salaries of only 15 per cent and upon corporation profits of not more than 17 per cent. Out of the population of some 5 million, following budget changes in 1982 which took 92 000 people out of the tax net, there were only about 218 000 persons liable to salaries tax; and of these some 13 000 paid over half the total receipts. The stock of public housing increased at such a pace that by 1981 the Hong Kong Government had become the largest landlord of rented accommodation in the world; during the decade to 1983 about two million people, some 40 per cent of the entire population, will have moved into new housing in