US Business Journalists Receive Postive Message On HK’s Future

Hong Kong will have a voice in foreign economic policy after its reversion to China – a say which it lacks under British sovereignty, Director of the Hong Kong-Macau Affairs Office Lu Ping told a visiting group of American business journalists in September 1996.

Mr Lu said that although China will be responsible for Hong Kong’s foreign policy and defence as stipulated under the Basic Law, Hong Kong will retain its independent status as a signatory in world trade organisations and international agreements and would be consulted by China on foreign policy matters with trade implications.

He used the hypothetical example of an international embargo to illustrate his point, saying that Hong Kong would be consulted by China before being asked to participate.

Hong Kong was not consulted during the Falklands War in the early 1980s when Britain forced the territory to join an embargo of Argentina.

However Mr Lu said the scenario he was outlining was unlikely to occur because as a rule China does not support economic embargoes of other nations.

The visiting journalists from the Washington Times, the St. Paul Pioneer Press, the San Diego Union-Tribune, Industry Week and several finance investment publications were visiting China and Hong Kong on a trip sponsored by The Better Hong Kong Foundation.

Mr Lu also took the opportunity to reiterate the core points of the Joint Declaration and the Basic Law and painted a positive picture of the future post-1997.

He maintained that:

• Hong Kong will be run by Hong Kong people after 1997
  
• its economic and legal system will not change
  
• the Hong Kong dollar will continue to be pegged to the US dollar
  
• the securities market in Hong Kong will remain independent of the mainland
  
• common law will be practised in the territory
  
• and members of the Hong Kong judiciary may be selected from any country practising common law such as Canada or New Zealand.

The journalists also met with representatives from several major ministries during the visit. These included the Ministry of Foreign Trade and Economic Cooperation; the State Planning Commission; the China Securities Regulatory Commission; the People’s Bank of China and the Ministry of Foreign Affairs.

All gave positive messages regarding Hong Kong’s future. In particular, the Deputy Governor of the People’s Bank of China Chen Yuan reaffirmed that the Hong Kong Monetary Authority would remain independent of the Central Bank.

The territory will also retain 100% of its revenues, unlike Shanghai and other mainland cities which have to contribute their revenue to the Central Government.

Hong Kong’s role is different, Mr Yuan explained. Hong Kong is a bridge and a window to China, contributing and attracting foreign investment to the mainland.

The US group also met the Mayor of Shanghai, Xu Kuangdi, who described Hong Kong and Shanghai as two engines driving the economy of China.

He characterised the cities as “mutually complimentary” with Hong Kong being the international centre and Shanghai the domestic equivalent, similar to Frankfurt and Berlin or San Francisco and New York.

Other than Beijing and Shanghai, the media group also visited Guangzhou and Shenzhen during their 10-day stay in China before coming to Hong Kong.

The media tour is part of the efforts of The Foundation in fostering better communication and understanding among overseas community in the development of China and Hong Kong.