13 The European Union, Hong Kong and
Macao
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14826/06
COM(06) 648
| Commission Communication: The European Union, Hong Kong and Macao: Possibilities for cooperation 2007-2013
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| Legal base | — |
| Document originated | 26 October 2006
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| Deposited in Parliament | 14 November 2006
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| Department | Foreign and Commonwealth Office
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| Basis of consideration | EM of 27 November 2006
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| Previous Committee Report | None; but see (27967): HC 34-xlii (2005-06), para 4 (7 November 2006)
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| To be discussed in Council | 11 December 2006 General Affairs and External Relations Council
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| Committee's assessment | Politically important.
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| Committee's decision | Cleared, but relevant to the debate in the European Standing Committee on the EU-China relationship
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Background
13.1 The Commission recalls that its policy towards the Hong Kong
and Macao Special Administrative Regions (SARs) is set out in
its 1997 and 1999 Commission Communications respectively, which
were prepared in the aftermath of the handover of sovereignty
to the People's Republic of China.
13.2 In the case of the Hong Kong SAR, the Commission
says that Communication underlined the importance of the smooth
implementation of the "one country, two systems" principle
and set out ways in which the EU could contribute to Hong Kong's
political and economic development. The Commission has engaged
with the SAR government on a number of policy dialogues, notably
on trade and economic policy and signed bilateral agreements in
areas such as customs and readmission of illegal immigrants, and
"when the need has arisen, made declarations on political
developments".
13.3 It has also held annual meetings of the Joint
Committee with the Macao SAR authorities and issued annual reports
on developments in both SARs.
13.4 The Commission says that the European Union's
relations with both Hong Kong and Macao have developed considerably
since their return to Chinese sovereignty. Most recently, during
a visit in July 2006, Commission President Barroso agreed with
the Chief Executives of both SAR governments that "the European
Commission should develop, broaden and deepen cooperation"
with the two SARs "in areas of mutual interest".
The Commission communication
13.5 The Communication accordingly evaluates the
current relationships and makes a number of recommendations for
improving and deepening cooperation. The Communication states
that since the transfer of Hong Kong and Macao to Chinese sovereignty,
the principle of "one country, two systems", according
to which both are governed, has "in general" been respected
and is worked well. It says that the EU supports this principle
and, in particular, "the respect for human rights and individual
freedoms enshrined in the Basic Laws, which should be enjoyed
by the citizens of both SARs".
13.6 It notes that Hong Kong's Basic Law states that
the election of its Chief Executive and its Legislative Council
by universal suffrage is "the ultimate aim". Noting
that there are no analogous provisions in Macao's Basic Law ,
it nonetheless calls for early and substantial progress towards
universal suffrage in both SARs, "in line with the wishes
of the people of Hong Kong and Macao". The Commission also
says it has "commented at length" on Hong Kong's constitutional
development and interpretation of the National People's Congress
of the SAR's Basic Law, on developments in Macao, in its annual
reports.[28]
13.7 The Communication states that mainland China's
rapid growth and increasing economic prosperity has created new
opportunities for Hong Kong and Macao, from which both are benefiting
as liberal, open gateways to and from China. It explains that
the EU has substantial interests in Hong Kong as a business, finance,
logistics and transportation hub, as well as an important gateway
to the China mainland. It notes that Hong Kong is the EU's 16th
largest bilateral trading partner, ranking as high as 6th if transit
trade via Hong Kong to China is taken into account, and that the
EU is Hong Kong's 3rd largest supplier and 3rd largest investor.
13.8 The Communication states that the EU and Hong
Kong enjoy a positive relationship on trade, customs co-operation
and migration issues, but that it would like to see improvement
on competition policy, particularly in certain key sectors, and
more action to address Intellectual Property Rights violations.
13.9 It states that the EU and Macao enjoy strong
relations, noting that since 1992, when the EU concluded a Trade
and Co-operation Agreement with Macao, it has funded co-operation
projects and training in various sectors including tourism, services
and law reform.
13.10 The Communication sets objectives for moving
forward co-operation in seven areas within the competence of the
Hong Kong and Macao Governments under their respective Basic Laws:
- Trade and customs
- Finance
- People-to-people links (including academia)
- Transport
- The environment
- Health
- Food safety
13.11 The Communication proposes that this deeper
co-operation should be delivered through structured, regular dialogue.
For Hong Kong, it suggests that this would best be achieved through
an annual meeting looking at the full range of co-operation between
the two sides, to complement existing sector-specific dialogue,
with the first annual meeting to take place before the end of
2006. For Macao, it believes that the existing mechanism, an annual
meeting of the EC-Macao Joint Committee established under the
1992 Trade and Co-operation Agreement, works well and should continue.
13.12 Finally, the Communication suggests that, following
agreement of a new Financing Instrument for Industrialised Countries,[29]
funding should be provided for meetings, conferences and other
activities that support the objectives that it has detailed.
The Government's view
13.13 In his 27 November 2006 Explanatory Memorandum,
the Minister for Europe at the Foreign and Commonwealth Office
(Mr Geoffrey Hoon) says that the Communication is consistent with
the Government's own assessment that the "one country, two
systems" principle has generally worked well in practice
since the handover of sovereignty. He continues as follows:
"We believe that there is a great deal to be
satisfied with in respect of Hong Kong's economic and social development
since the handover. At the same time, we believe that there is
still a need to make progress towards universal suffrage, in line
with the ultimate aim of Hong Kong's Basic Law. The Government
believes that Hong Kong should advance to a system of universal
suffrage as soon as possible, and echoes the Commission's call
for early and substantial progress to this end. The Government
also looks forward to progress towards a more democratic, transparent
and accountable form of government in Macao. The Government shares
the view that mainland China's exponential economic growth has
created new opportunities for Hong Kong and Macao, and that their
success is a result of their openness to the global economy. The
Government agrees that there is great potential further to develop
relations between the EU and Hong Kong and Macao, and welcomes
the fact that in deepening its co-operation with Hong Kong and
Macao, the Commission proposes to focus its efforts on key areas
of common competence".
13.14 Finally, he says that the 11 December 2006
General Affairs and External Relations Council is "likely
to note the Communication".
Conclusions
13.15 We recently recommended the Commission Communication
on the EU-China Relationship for debate in the European Standing
Committee.[30]
We consider that both the economic and commercial and the political
components of this Communication are relevant to that debate.
13.16 In the meantime, we clear this Communication.
28 See http://www.delhgk.cec.eu.int/en/index.htm for
annual reports on both Hong Kong and Macao; also listed in the
annex to the Communication. Back
29
Which we consider in paragraph 15 of this Report. Back
30
See (27967): HC 34-xlii (2005-06), para 4 (7 November 2006) Back
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