Hong Kong

Part of Prayers – in the House of Commons at 9:38 am on 15 July 1988.

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Photo of Mr Geoffrey Howe Mr Geoffrey Howe , East Surrey 9:38, 15 July 1988

This debate is important. I am conscious of the fact that the choice of date is not initially convenient for some right hon. and hon. Members, and I am grateful to them for having accommodated the arrangements that emerged. Some hon. Members have travelled a long way to be here, and the House will appreciate that.

The debate is important for two reasons, the first being that our subject is Hong Kong. The territory ranks high in the Government's priorities, and our responsibilities towards it are special. The House will know that it has been a continuously important item on my personal agenda as Foreign Secretary. My most recent visit to Hong Kong was only a few weeks ago, and my noble Friend the Minister of State was there at the beginning of this month. Both of us were struck, as one always is in Hong Kong, by its continuous vitality and bustle. Hong Kong is enjoying a spectacular run of economic growth. Its full employment, low public expenditure and ambitious development projects are an example to East and West alike.

The second reason why this debate is important is that it is taking place at a time when the people of Hong Kong are engaged in a vigorous debate on the draft of the Basic Law—a document that will play a crucial role in giving effect to the provisions of the Sino-British joint declaration, and so in shaping Hong Kong's future.

The two co-signatories of the joint declaration have important obligations to each other under international law. The Chinese Government have the responsibility for drafting the Basic Law—that is entirely a matter for them. The British Government, on the other hand, have a right to assure themselves that the principles embodied in the joint declaration have been faithfully implemented in the Basic Law. That is why it is appropriate that we should have this debate. Both sides. in addition, have a common obligation to the people of Hong Kong. I know that that is something that the House takes very seriously. Already this year we have considered Hong Kong on three occasions. This is the fourth. The territory was also the subject of a debate in another place on 10 June. That sustained level of interest is very welcome. It is also a source of reassurance and encouragement to the people of Hong Kong.

Our first debate on Hong Kong this year focused largely on representative government in the territory. I later made a statement on the White Paper published by the Hong Kong Government on the same issue. The White Paper had its critics, both in the House and in Hong Kong itself, but I believe it is now clear that most people in Hong Kong regard it as a forward-looking document, which has struck the right balance between the need for reform and the need for stability during the critical transitional period.

The White Paper was overwhelmingly endorsed by Hong Kong's Legislative Council. An amendment regretting the decision to introduce direct elections in 1991 and not before was soundly rejected by 42 votes to seven, and Hong Kong is now concentrating on making the White Paper work. It is concentrating too, as I have said, on careful scrutiny of the draft Basic Law. The process of public consultation over Basic Law is being conducted by the Chinese authorities in a thorough and painstaking fashion. That is indeed a welcome sign of the seriousness with which the Chinese take their obligations to the people of Hong Kong. A crucial phase began at the end of April with the publication of a first draft, and it will continue for five months until the end of September.

The way in which this matter is handled will have a major effect on confidence in Hong Kong and on how Hong Kong people view their future. It is a heavy responsibility for the Chinese Government, but one which I have no doubt they recognise and accept. Their whole approach to the drafting exercise has demonstrated that.

First, mainland and Hong Kong members have worked together for over two years in the Basic Law drafting committee to hammer out a text that addresses the interests of all concerned. There have been seven plenary meetings of the committee and innumerable meetings of its sub-committees. Second, there is a considerable breadth of representation of Hong Kong people on that committee. Twenty-three of the 59 members of the committee are Hong Kong people, covering a diverse range of interests. Thirdly, the process of drafting has been remarkably open. There has been a free exchange of views within the committee, and no lack of information about the progress of the draft as that has evolved.

Speaking as someone who has long taken an interest in improving the quality of our own legislative process, I confess that I find myself impressed by the openness of this procedure, which has the great virtue of positively inviting public participation. Indeed, it might go beyond the earliest aspirations of my right hon. and learned Friend the Patronage Secretary, who is sitting beside me. The Chinese authorities have clearly recognised the need to retain the confidence of the people of Hong Kong in the drafting process. We very much welcome this approach.

The same can be said of the present process of public consultation. The Basic Law consultative committee, which comprises some 180 people in Hong Kong, has mounted an extensive publicity campaign to collect views among the Hong Kong public. The Chinese Government have made it clear that they accept that there is still a good deal of room for improvement in the text and that amendments will be made. There is thus scope for all Hong Kong people to make an input into the drafting process and they are, indeed, making their views known.

I hope and believe that the Chinese authorities will take careful account of all views expressed. It is firmly in China's interests to get the Basic Law right, in order to maintain confidence in Hong Kong and secure its future beyond 1997. The Chinese know as well as we do that the success of the arrangements that are being made for Hong Kong's future depend upon what Hong Kong people themselves think of them, so they will certainly want a Basic Law to emerge that can command the confidence and respect of people in Hong Kong and the wider international community.

Her Majesty's Government are, of course, following the public debate in Hong Kong extremely closely. The House will know that a thoughtful and constructive two-day debate has just taken place in the Legislative Council. My officials have had detailed and useful discussions with a delegation of Hong Kong lawyers who are visiting London for this debate, as well as with other groups from the territory. We are in regular touch with the Chinese Government on the matter, and I have discussed Basic Law questions with the Chinese Foreign Minister. Let me take this opportunity to express my warm appreciation of the part played by my former opposite number, Mr. Wu Xueqian, and of wishing him well in this new post as Deputy Prime Minister. I look forward to working equally closely with his successor, Mr. Qian Qichen, whom I was glad to meet in New York just a few weeks ago. That serves to emphasise the extent to which we have a continuous dialogue with the Chinese on several levels.

The House will, I am sure, understand why these discussions need to be conducted in confidence. To conduct this kind of exchange by public proclamation would certainly not help to secure the objectives for Hong Kong to which we all attach so much importance. We are taking care to transmit to the Chinese Government views and concerns expressed by bodies and individuals in Hong Kong and here in the United Kingdom. We ensure that the Chinese Government are made aware of the views expressed in both Houses. I have said here before, and I take the opportunity to say again, that there is no question of us subordinating the interests of Hong Kong to some concept of an Anglo-Chinese relationship that excludes Hong Kong. On the contrary, far and away the most important component of the Anglo-Chinese relationship is our joint commitment to the success of Hong Kong.

Let me turn for a moment to the draft Basic Law. It is a large, comprehensive document, covering virtually all the provisions of the joint declaration. Some of those provisions are included verbatim. It is important to recognise, before looking at some of the remaining areas of difficulty, that most of the text is already very much along the right lines. The main remaining areas of concern in Hong Kong have clearly emerged and are being addressed.

The first of those concerns is autonomy. The question is asked whether the Basic Law will enable the Hong Kong special administrative region to enjoy the high degree of autonomy provided for in the joint declaration. That is an entirely reasonable question to ask, but equally it must be recognised that a high degree of autonomy is not the same as independence. Sovereignty over Hong Kong will rest with China after 1997. It will require the most careful judgment to get the balance right. We believe that the joint declaration, on the whole, got this right. That is why we attach great importance to ensuring that the Basic Law accurately reflects the joint declaration in this respect. A topic that is of particular significance in this context is the relationship between Hong Kong and the National People's Congress in Beijing in legislative and judicial matters, as well as in the interpretation of the Basic Law itself.

The general questions involved here are not unique. They arise whenever there is a need to allocate power and responsibility between a central Government and a non-sovereign entity within the same state, which has a degree, even a high degree, of autonomy. This is a crucial and sensitive area. It will be vital to confidence in Hong Kong to define the relationship in a way that not only reflects the fact of Chinese sovereignty, but properly meets the legitimate requirements and expectations of the special administrative region.

A second part of the draft that needs to be looked at closely is the guarantees of essential rights and freedoms. There is understandable concern about the extent to which the provisions in the draft designed to protect the rights and freedoms of Hong Kong people will work in practice. Once again the important thing must be to ensure that the ultimate result faithfully reflects the provisions of the joint declaration, so that Hong Kong people can be confident that they will continue to enjoy the rights and freedoms that they have today. We hope that the drafters will listen to those concerns and refine the draft accordingly.

Thirdly, there are the provisions on the economy. Many people have expressed reservations about provisions in the draft that appear to bind the future SAR Government to pursuing certain economic or fiscal policies. There would appear to be good reason for that anxiety. As drafted, the provisions seem to encroach on the autonomy in these areas which the future SAR Government are to enjoy.

There is an interesting irony in this last point. Five years ago we were worried that the Chinese might not permit capitalism to survive in Hong Kong after 1997. Now we see problems in a draft Chinese law that would, among other things, oblige Hong Kong to maintain policies that many other capitalist Governments would give their eye teeth to achieve—low taxes and a balanced budget—though I naturally understand that the Labour party may not share that view. The constitutional problem is important, but the irony is worth noting. It reminds us just how far we have come on Hong Kong in five years.