Speech by Secretary for Constitutional Affairs

**********************************************

Following is the speech on "Relationship between the Central Authorities and the HKSAR" delivered by the Secretary for Constitutional Affairs, Mr Michael Suen, at the Symposium on "Hong Kong is Our Home - In Commemoration of the 8th Anniversary of the Promulgation of the Basic Law" today (Friday):

Ms Ko, Professor Zee and Guests,

The relationship between the Mainland and Hong Kong has entered a new era following the reunification. The three guiding principles of "One Country, Two Systems", "Hong Kong people ruling Hong Kong" and "a high degree of autonomy" form not just the cornerstones of the Basic Law, but also the framework within which the Hong Kong Special Administrative Region (HKSAR) is to conduct its affairs and to define its relationship with the Central Authorities. Today I hope to take the opportunity to explore with you the relationship between the Central Authorities and the HKSAR under these three important guiding principles. I will examine this subject in respect of the constitutional relationship between the Central Authorities and the HKSAR; the working relationship between the HKSAR Government and the MFA Office as well as the co-operation between the HKSAR Government and HKMAO.

Constitutional Relationship between the Central Authorities and the HKSAR

---------------------------------------------------------

In accordance with Article 31 of the Constitution of the People's Republic of China, the HKSAR was established on 1 July 1997. It is a local administrative region of the People's Republic of China, which enjoys a high degree of autonomy and comes directly under the Central People's Government. Under the principle of "One Country, Two Systems", the socialist system and policies are not practiced in Hong Kong, and the previous capitalist system and way of life shall remain unchanged. The HKSAR enjoys executive, legislative and independent judicial power, including that of final adjudication. Article 11 of the Basic Law clearly stipulates that the systems and policies practiced in the HKSAR, including the social and economic systems, the executive, legislative and judicial systems etc., shall be based on the provisions of the Basic Law. Besides, national laws shall not be applied in the HKSAR except for those listed in Annex III to the Basic Law.

Apart from the legal protection offered by the Constitution and the Basic Law, our State leaders have reaffirmed in various occasions that the Central People's Government is committed to the policies of "One Country, Two Systems", "Hong Kong people ruling Hong Kong" and "a high degree of autonomy". During the First Session of the Ninth National People's Congress held last month, President Jiang Zemin emphasized that the central authorities and all the provinces, regions and municipalities would strictly abide by the Basic Law and would fully support the Government of the HKSAR in exercising its functions in accordance with the Basic Law. The Central People's Government would not allow any mainland authorities, any local regions and anybody to interfere in matters that are within the limits of the autonomy of the HKSAR. This demonstrated the commitment of the CPG to implement fully the Basic Law and to handle effectively the relationship between the Mainland and the HKSAR.

Working relationship between the HKSAR and MFA Office

-----------------------------------------------------

After the reunification, one of the important areas of work for the HKSARG is to establish a good working relationship with the Office of the Commissioner of the MFA of the PRC in the HKSAR in handling HKSAR's external affairs. The Basic Law has provided both a broad principle for the division of responsibilities between the HKSARG and the MFA Office and more specific provisions relating to the conduct of HKSAR's external affairs. However, in the process of implementing the Basic Law, the HKSARG and the MFA Office must communicate effectively and co-operate closely so as to handle Hong Kong's external affairs in ways which are consistent with the "One Country, Two Systems" principle, and which take into account the actual circumstances in Hong Kong and fully meet our practical needs.

Ever since the establishment of the HKSAR, the Constitutional Affairs Bureau has maintained frequent contacts with various departments within the MFA Office. We have also developed a smooth and cordial working relationship with each other. In more specific terms, our contacts and liaison with the MFA Office relate mainly to the following areas of external affairs -

(a) when the HKSARG joins international organisations and participates in international conferences, we may, as necessary and in accordance with the relevant provisions in the Basic Law, seek the approval of the CPG via the MFA Office;

(b) when the HKSARG negotiates and concludes bilateral or multilateral agreements with foreign states or international organisations, we may, as necessary and in accordance with the relevant provisions in the Basic Law, obtain CPG's authorisation via the MFA Office; and

(c) on the establishment of consular missions by foreign states in Hong Kong, the MFA Office is responsible for foreign affairs matters (such as consular appointments) whereas the HKSARG is responsible for the day-to-day management of the consular corps in Hong Kong.

After the reunification, Hong Kong, as before, plays an active role in the international arena and maintains close co-operation and contact with her international partners. HKSARG representatives have participated as part of the PRC delegations in over 30 international conferences in the areas of telecommunications and civil aviation. Participation in these conferences are limited to states. HKSARG representatives have also participated on their own, using the name "Hong Kong, China", in over 500 international conferences which are not limited to states. These conferences mainly deal with trade, economic and shipping matters, including those held under the auspices of international organisations such as Asia Pacific Economic Co-operation (APEC), World Trade Organisation (WTO) and International Maritime Organisation (IMO). In accordance with the relevant provisions in the Basic Law, the CPG has also agreed to authorise the HKSARG to conclude 34 bilateral agreements, including Air Services Agreements, Overflight Agreements, Mutual Juridical Assistance agreements and a Visa Abolition Agreement.

We are confident that, through communication and co-operation with the MFA Office, we will be able to handle Hong Kong's external affairs properly in accordance with the Basic Law and the "One Country, Two Systems" principle.

Co-operation between the HKSARG and HKMAO

------------------------------------------

Another goal of ours is to develop effective channels of communication between the HKSARG and the Central People's Government and other mainland authorities; and to ensure that our relationship with the Mainland accords with the "One Country, Two Systems" principle as enshrined in the Basic Law.

Hong Kong has all along maintained extensive contacts with the Mainland. A very important aspect of these contacts is those involving contacts between government officers in Hong Kong and their mainland counterparts. Examples of such contacts include cooperation over day-to-day operational matters across the boundary, exchange of expertise or information on technological developments, and study visits, etc. Such contacts have been most useful in enhancing mutual understanding between officials in Hong Kong and the mainland. The contacts also give the officials concerned a better understanding of each other's work, thereby making cooperation between them more effective and direct. Given the closer ties between the HKSAR and the mainland after the reunification, such contacts have continued to grow.

The Hong Kong and Macao Affairs Office of the State Council (HKMAO) has done a lot of liaison work between Hong Kong and the Mainland. Mr Liao Hui, Director of the HKMAO, said when he met the Chief Executive last August that the HKMAO would assist in the HKSAR Government's contacts with the Central People's Government (CPG) and mainland departments at the Central and Provincial level. The HKMAO will serve the HKSARG and the people of Hong Kong in its roles as a "gate-keeper", a "liaison officer" and a "service provider". We understand that the HKMAO's "gate-keeper" role is to ensure that the HKSARG would be free from any inadvertent interference from provinces or municipalities which might arise from a lack of thorough understanding of the Basic Law on their part.

Viewing from another angle, we on our part may not fully understand the operation of certain mainland authorities and it will be helpful to have a CPG department to assist in the co-ordination and liaison work, especially in respect of major policy issues. The HKMAO has played an important role in this regard and has provided invaluable assistance to the HKSAR. It always stands ready to provide assistance to the HKSARG in its contacts with mainland authorities as requested.

With the assistance of the HKMAO, contacts between HKSARG departments and bureaux and mainland authorities are conducted smoothly. Direct contacts between the SARG and mainland authorities in individual areas are also maintained. An example of such direct contacts is the cooperation on operational matters across the boundary between the police, immigration and customs authorities. Such direct contacts ensure that our exchanges with the mainland authorities are both effective and efficient. As regards other contacts, over 400 exchanges have already taken place between SARG departments and bureaux and mainland authorities since 1 July 1997. These contacts contribute much in enhancing mutual understanding and strengthening of cooperation between Hong Kong and the mainland.

Conclusion

----------

Since the reunification, both the HKSAR Government and the Central Government have faithfully put into practice the important principles of "One Country, Two Systems", "Hong Kong people ruling Hong Kong", and "a high degree of autonomy" in accordance with the Basic Law. The relationship between the mainland and the HKSAR has developed rapidly pursuant to the clear direction set out in the Basic Law.

In the last nine months, we have witnessed that the executive, the legislature and the judiciary continue to function smoothly. The legal system of the HKSAR remains intact. The judiciary remains independent and professional. The freedom enjoyed by the Hong Kong people are just as before. We continue to maintain fair competition and good law and order. During the recent financial turmoil in Asia, the Government of the HKSAR, with its stable public finances and healthy fiscal reserves, has formulated on its own appropriate measures to deal with the problem and has successfully maintained the stability of the linked exchange rate. Hong Kong continues to prosper and maintain its status as a leading international shipping, trade, financial and business centre. All these provide a good illustration of how the principle of "One Country, Two Systems" effectively operates in the HKSAR.

In accordance with the "One Country, Two Systems" principle, the Central Authorities and the HKSAR have developed a good relationship on the basis of mutual trust and benefit. This represents the result of their determination to implement the Basic Law and sincerity to enhance mutual understanding and communication. I trust that with the efforts and co-operation of both parties, the mainland and Hong Kong will secure even more spectacular achievements in the 21 century.

End/Friday, April 3, 1998

NNNN