ENG-2000 — Page 35

CHAPTER 2

Constitution and Administration

HONG KONG became a Special Administrative Region of the People's Republic of China (PRC) on July 1, 1997. The Basic Law which is the constitutional document of the Hong Kong Special Administrative Region (HKSAR) was put into effect on

the same day. The Basic Law sets out the basic policies of the PRC regarding Hong Kong and the way in which the HKSAR is to be administered for 50 years beyond 1997.

Under the Basic Law, the HKSAR shall enjoy a high degree of autonomy except in defence and foreign affairs. The HKSAR shall exercise executive, legislative and independent judicial power, including that of final adjudication. The HKSAR's executive authorities and legislature shall be composed of permanent residents of Hong Kong. The HKSAR shall remain a free port, a separate customs territory and an international financial centre and may, on its own, using the name 'Hong Kong, China', maintain and develop relations and conclude and implement agreements with foreign states and regions and international organisations in the appropriate fields, including the economic, trade, financial and monetary, shipping, communications, tourism, cultural and sports fields.

Role of the Chief Executive

The Chief Executive is the head of the HKSAR. He is responsible for implementing the Basic Law, signing bills and budgets passed by the Legislative Council, promulgating laws, making decisions on government policies and issuing executive orders. He is assisted by the Executive Council in policy-making.

The Basic Law provides that the Chief Executive of the HKSAR shall be selected by election or through consultations held locally and be appointed by the Central People's Government (CPG). The method for selecting the Chief Executive shall be specified in the light of the actual situation in the HKSAR and in accordance with the principle of gradual and orderly progress. For the second term, the Chief Executive will be elected by an Election Committee composed of 800 members from four different sectors of the community. The Basic Law provides that the ultimate aim is the selection of the Chief Executive by universal suffrage upon nomination by a broadly representative nominating committee in accordance with democratic procedures.

The first Chief Executive of the HKSAR, Mr Tung Chee Hwa, was elected by a Selection Committee comprising 400 members from various sectors in the community set up in accordance with the Basic Law. Mr Tung assumed office on July 1, 1997, for a five-year term.

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