Select Committee on Foreign Affairs Minutes of Evidence


ANNEX B

FUNCTIONAL CONSTITUENCIES

  1. The 30 FCs for the May elections are as follows. The Labour FC (representing the trades unions) returns three members; all others return one each. The nine FCs marked * are newly created for 1998, and replace the new nine FCs introduced in 1995.

Functional ConstituenciesRepresenting

1. Urban Councilthe two tiers of local government
2. Regional Council
3. Heung Yee KukA new Territories residents organisation
4. Agriculture and fisheries*
5. Insurance*
6. Transport*
7. Education
8. Legal
9. Accountancy
10. MedicalDoctors and dentists
11. Health servicesNursing, physiotherapists etc.
12. Engineering
13. Architectural, Surveying and planning
14. Labour*Trade unions
15. Social welfare
16. Real estate and construction
17. Tourism
18. Commercial (I)HK General Chamber of Commerce
19. Commercial (II)Chinese General Chamber of Commerce
20. Industrial (I)Federation of HK Industries
21. Industrial (II)Chinese Manufacturers' Association
22. FinanceBanks
23. Financial ServicesStock & commodities exchanges
24. Sports, performing arts, culture & publication*
25. Import and Export*
26. Textiles and garment*
27. Wholesale and retail*
28. Information technology*


BEIJING'S INFLUENCE IN HONG KONG

INTRODUCTION

  1. Following their recent visit to Hong Kong, the FAC decided that it would be useful to have a note assessing whether—and to what extent—any developments in Hong Kong since the handover could be attributed to the direct influence of Beijing, as distinct from decisions taken by the SARG of its own volition. This paper considers these questions in relation to four themes: electoral arrangements, the economy, the rule of law, and human rights.

  2. In general, the Chinese Government has respected Hong Kong's high degree of autonomy. Since the restoration of Hong Kong to Chinese sovereignty on 30 June 1997, SARG officials have said that Hong Kong has so far been left to run its own economic, financial and trade policy, including in export controls. Participation in international organisations and relations with third countries in the economic and social fields have continued to be dealt with by the SARG. Day to day decisions have been left to the SARG. The Chinese Government has also agreed to transmit to the United Nations without amendment reports drafted by the SARG on Hong Kong under the ICCPR and ICESCR. The PLA Garrison in Hong Kong has kept a low profile. Since the handover Chinese leaders have stressed the principles of "one country two systems" and "Hong Kong people running Hong Kong".

  3. However, many decisions taken by the SARG after 30 June 1997 were in effect preordained by the Chinese Government before the handover through the Beijing-appointed Preparatory Committee (see Annex). In this way parameters were established within which the SARG was obliged to work, notably in relation to the formation of the Provisional Legislative Council, the arrangements for elections to the first SAR LegCo, and decisions on certain pieces of domestic Hong Kong legislation relating to public order and human rights.

ELECTORAL ARRANGEMENTS

Formation of the Provisional Legislative Council

  4. One of the most obvious manifestations of Beijing's involvement in Hong Kong affairs has been the existence of the Provisional Legislative Council (PLC). The formation of the PLC was a major function of the Preparatory Committee. The Preparatory Committee appointed a 400-member Selection Committee (all Hong Kong permanent residents) responsible for choosing the members of the PLC. These were duly chosen on 21 December 1996. In order to give the PLC as much credibility as possible, 33 members of the existing LegCo were reappointed to the PLC. There were no members of the Democratic Party (which won 60 per cent of the popular vote in the 1995 elections) on the PLC. Eighty five per cent of the appointees were themselves members of the Selection Committee.

Arrangements for Elections to the First SAR LegCo

  5. Following public consultations in March 1997, the Preparatory Committee announced the arrangements for the election of the first SAR LegCo during its Ninth Plenum in Beijing from 22-23 May 1997. The essential structure of the new LegCo would follow that set out in the Basic Law: 20 directly elected members, 30 members from functional constituencies, and 10 members chosen by an Election Committee of 800.

  6. In the geographical constituencies, the PC recommended proportional representation and multi-member constituencies. In the functional constituencies, they recommended a return to corporate voting. They proposed the elimination of the nine "mass-member" functional constituencies introduced for the 1995 elections, and 15 new sectors to elect members for these nine constituencies. The cumulative effect of these changes was to reduce the franchise in the functional constituencies from 2.7 million to 229,000.

  7. The HKSAR Legislative Council Ordinance was drafted closely within the framework of the Preparatory Committee announcement. It was gazetted on 15 August 1997, and passed through the PLC on 27 September 1997 by 29 votes to 9, with 11 abstentions.

ECONOMY

  8. Since the handover the Chinese Government has avoided involvement in Hong Kong's economic affairs. The SARG acted independently to defend the peg between the Hong Kong dollar and the US dollar; it decided on its own to make a US$1 billion contribution to the IMF package for Thailand; and it has been left alone to manage other aspects of its economic affairs, including the drafting of the first SAR budget. The Chinese Government has pledged its support for Hong Kong's autonomy in this area, but has also acted with some sensitivity for the SAR's interests, including through its consistent rejection of a RMB devaluation, which would put pressure on the Hong Kong dollar peg.

RULE OF LAW

  9. In general the rule of law has been upheld since the handover and the judiciary has operated as independently as it did before 1 July 1997. More recently, however, there have been suggestions that Beijing's influence may have been a factor in decisions made by the Hong Kong authorities not to initiate prosecution proceedings in certain cases. SAR officials have denied that there was any interference.

Public Prosecution Policy

  10. The first case involved the Hong Kong branch of the New China News Agency (NCNA). The NCNA had failed to respond within the legal deadline of 40 days to a request from politician Emily Lau for information on her held by NCNA. This was described by the SARG as a "technical breach" of the Privacy Ordinance, and no action was taken.

  11. The second case was the non-prosecution of the owner of the Sing Tao Newspaper Group, Sally Aw, on alleged charges of fraudulently increasing the circulation figures of the Hong Kong Standard. Some alleged that this decision was a result of Ms Aw's perceived links with Beijing, e.g., through her membership of the Chinese People's Political Consultative Committee (CPPCC).

  12. The case is currently sub judice, and therefore no detailed explanation of the reasons for the decision has yet been given. However, on 23 March 1998, the Secretary for Justice gave a lengthy explanation of public prosecution policy to the PLC Panel on Administration of Justice and Legal Services. She said that prosecution policy was free from all forms of interference (in line with Article 63 of the Basic Law), and spelt out the long-established criteria used in decisions on public prosecution.

Adaptation of Laws

  13. One issue not resolved before the handover was the question of how the word "Crown" should be adapted in Hong Kong laws, and to what extent the exemption from a number of Hong Kong laws that the Crown had enjoyed before the handover should apply to Chinese Government organs. The Adaptation of Laws Ordinance passed by the PLC on 8 April 1998 included changing the word "Crown" to "State". The definition of State included organs of the Chinese Government in Hong Kong, one of which was the Hong Kong branch of the New China News Agency (NCNA). Some have suggested that this decision was the result of influence from Beijing. Concerns have also been expressed that the decision violates Article 22 of the Basic Law, which requires Chinese Government departments to abide by the laws of the SAR.

  14. The SARG has said that this was simply a technical exercise to adapt the law to a post-handover situation, and that the State is the closest embodiment of the pre-handover Crown. They have said that they will separately review the appropriateness of the exemptions given to State bodies.

Taiwanese Flags

  15. There was criticism from some quarters of a decision by the SARG to remove Taiwanese flags displayed in public places on 10 October (Taiwan's "national day": the so-called "Double Tenth") last year. The legal basis for this action was unclear, and the action was defended as necessary under the "One Country" principle. Although there was no evidence of direct involvement by the Chinese Government in this decision, some observers have suspected the influence of Beijing or have interpreted the incident as an example of the SARG second guessing the wishes of Beijing.

Legality of the Provisional Legislative Council

  16. On 29 July 1997, the Court of Appeal ruled on the legality of acts passed by the PLC. The court also addressed the legality of the provisional legislature itself, but judged it was not competent to rule on this point as the PLC had been established under the authority of the Chinese National People's Congress (NPC). There is no evidence that the court reached its verdict other than independently, but concerns were expressed in the community that the judgment gave free licence to the NPC to pass laws which would be binding on Hong Kong, and undermine the autonomy afforded by the Basic Law.

Suspension of Laws

  17. In July 1997, the PLC suspended certain laws relating to labour rights and the Bill of Rights Ordinance passed in the last few days of the previous LegCo. The decisions were highly controversial, not least because they involved the unelected PLC amending laws of the elected LegCo. However there has been no evidence of Beijing having been involved in these decisions, which appear to have been taken by the SARG on its own.

HUMAN RIGHTS

  18. Developments since the handover in the area of human rights have been basically encouraging. There have been no big changes of policy or obvious restrictions on rights that existed before 1 July 1997. However, there have been several legislative changes enacted by the SARG, and a number of concerns exist. Two important forthcoming tests of the Chinese Government's hands-off approach will be the transmission of reports on Hong Kong under the ICCPR and ICESCR (see paragraph 25), and the implementation of legislation under Article 23 of the Basic Law covering the offences of treason, secession, sedition and subversion against the Chinese Government.

PLC Decisions Related to Hong Kong Legislation

  19. In March 1997, on the recommendation of the Legal Sub-Group of the Preparatory Committee (following the recommendations of the Preliminary Working Committee), the NPC Standing Committee voted to repeal or amend 25 Hong Kong laws which it determined were in violation of the Basic Law. The majority of the changes were adjustments to colonial laws necessary because of the change of sovereignty, but others were more controversial. These changes affected the Bill of Rights Ordinance, the Public Order Ordinance, and the Societies Ordinance.

Bill of Rights Ordinance

  20. On 1 February 1997 the Preparatory Committee endorsed a recommendation made by the Preliminary Working Committee in October 1995 that selected portions of the Bill of Rights Ordinance (BORO) (sections 2(3), 3 and 4) should be repealed. This recommendation was approved by the NPC Standing Committee on 23 February 1997, focusing on the BORO's provisions that it had over-riding power over all other legislation, and the requirement that all laws inconsistent with the BORO should be repealed to the extent of that inconsistency.

  21. Since the handover, the SARG have enacted legislation to amend the BORO's over-riding power over all other laws. In addition, the PLC passed a Bill on 25 February 1998 which annulled a suspended amendment to the BORO passed by the previous LegCo in June 1997. This amendment had expanded the scope of the BORO to cover legislation between private individuals. As noted above (paragraph 17), this later decision seems to have been taken independently by the SARG.

Public Order and Societies Ordinance

  22. Following the NPC's decision, the office of the Chief Executive (Designate) announced amendments to the Public Order Ordinance and Societies Ordinance to counteract the effects of liberalising amendments made in 1992 and 1995. After public consultation, minor modifications to the original proposals were made. They were passed by the PLC in Shenzhen in the run up to the handover, and were brought into effect by the Reunification Ordinance enacted in Hong Kong by the PLC on 1 July 1997.

  23. As a result of the amendments to the Public Order Ordinance, the police can ban demonstrations on the grounds of "national security", and a longer period of notice is now required before holding demonstrations. No demonstration has yet been banned on national security grounds, but since the handover, various demonstrators have criticised the policing of demonstrations against mainland leaders visiting Hong Kong, and claimed that treatment in these instances was heavy-handed and different from policing of domestic demonstrations. The amendments to the Societies Ordinance increased the regulation of societies, and limited links between local political parties and those overseas, reflecting the provisions in the Basic Law.

ICCPR and ICESCR Reports on Hong Kong

  24. In November 1997 the Chinese Government announced that it would transmit reports on Hong Kong under ICCPR and ICESCR to the United Nations. These reports would be drafted in Hong Kong by the SARG and the Chinese Government has undertaken not to amend the reports. The first post-handover reports will be transmitted to the UN in August 1998.

Press Freedom

  25. It is generally accepted that a degree of self-censorship, particularly in respect of events on the mainland, has existed in the press and electronic media since before the handover. There are varying assessments about whether the situation has deteriorated since 1 July 1997. Concern has been expressed about the editorial independence of RTHK following public attacks on RTHK by a CPPCC member in Beijing in March. But the Chinese Government has condemned the attack and reiterated that RTHK is a matter for the SAR. Following a debate in the PLC, the SARG announced that RTHK would draw up editorial guidelines, modelled on those of the BBC. There has been no evidence of direct interference by Beijing in the media. Concerns have, however, been expressed about the extent of Beijing's indirect influence as a result of recent changes to the ownership of one of the two terrestrial TV broadcasters, Asia Television

Legislation Under Article 23 of the Basic Law

  26. Under Article 23 of the Basic Law, the SARG is required to pass legislation to prohibit any act of treason, secession, sedition or subversion against the Central People's Government. There is much anxiety in the community about how this legislation will be framed. The SARG is waiting until after the elections, and there has been no evidence of Beijing pressurising them to take early action. Once legislation is put forward, this will be carefully scrutinised by the community for evidence of Chinese interference.


 
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Prepared 3 July 1998