Foreign Affairs Committee (Hong Kong Visit)

Debate between Geoffrey Clifton-Brown and Richard Graham

Tuesday 2nd December 2014 Commons Chamber

[Geoffrey Clifton-Brown]

My hon. Friend makes an interesting intervention and I will address his point directly in a minute.

It is unfortunate that we have to debate this situation, following the news that the Foreign Affairs Committee will not be granted entry to Hong Kong. As I said, I visited Hong Kong recently and paid visits to Mong Kok. I walked down Nathan road where I saw relatively few tents and protesters, and numbers were beginning to dwindle. Whether by coincidence or not, the situation seems to have flared up again in the last few days in conjunction with the proposed Foreign Affairs Committee visit.

Demonstrations have throughout been largely peaceful and without interference from the Hong Kong or Chinese authorities, and it is a tribute to both sides that they have managed to keep the protests within peaceful bounds. I absolutely understand the aims and aspirations of the demonstrators. My neighbour and hon. Friend the Member for Gloucester (Richard Graham) secured a debate on Hong Kong in Westminster Hall the other day, in which I outlined the disparity between those in Hong Kong who have, and those who have not. People are finding it difficult to get on the housing ladder or get decent jobs, and in some cases it is difficult to get a decent education. The authorities in Hong Kong need to address those issues. It is not that Hong Kong is not dynamic or successful economically, it is that it is not benefiting everybody. There is a class—particularly some of the younger people—who are being left behind, and that is leading to demonstrations. People want a greater say in the way Hong Kong is run.

Wanting to ensure that relations between this country and China were not damaged, I met high-level representatives from the Chinese embassy in Parliament last week. I tried hard to convey to them a number of things, including that we have a separation of powers in this country, that right hon. and hon. Members of the House are representatives of the people and able to do exactly what they like and can form Committees to investigate matters around the world, and that my right hon. Friend’s Foreign Affairs Committee is entitled to investigate any matter in which the British Government have an interest, including Hong Kong.

I think I failed in that part of my discussions. It is hard for those in a Government run by a communist system, who say to representatives in the Communist party, “You will not do that”, to understand that Members of Her Majesty’s Government—I welcome the Minister to his place—cannot simply say to a Committee or Member of the House, “You will not do this; you will do that.”

[Richard Graham]

On that point, has my hon. Friend heard members of the Chinese embassy say, as they have said to me, that ultimately the Government decide what happens in Parliament, in Committees and all-party groups, and even in Buckingham palace?

[Geoffrey Clifton-Brown]

My hon. Friend is right—that is exactly what they think and they have conveyed that to me. Somehow we must keep on repeating the facts about how this country operates.

Hong Kong

Debate between Geoffrey Clifton-Brown and Richard Graham

Wednesday 22nd October 2014 Westminster Hall

[Richard Graham]

The hon. Gentleman brings a degree of long experience on these issues to the debate today and to our Chamber in general, matching some of the experience visible in their lordships’ House when they debated recent events in Hong Kong. It is important that we understand the continuity of that commitment, which he saw for himself. I was living in Hong Kong in 1984 and in 1997, and I was present at the handover. These things are real to him and me, but for others, who are younger, it is important that that commitment is not forgotten or allowed to wither.

Let me turn to recent events, Britain and China’s reactions and the role of this Parliament in holding our Executive to account and raising questions of interest on behalf of our constituents. In the consultation in Hong Kong on the arrangements for the election of the next Chief Executive in 2017, which took place earlier this year, it was already clear that many had concerns about the detail of what the universal suffrage promised in China’s Basic Law would mean in practice. Those concerns increased sharply after the Chinese National People’s Congress standing committee announced its decisions on elections on 31 August.

It is worth noting that the British Government’s first reaction on 3 September was to welcome the Chinese commitment to universal suffrage, but also to

“recognise that the detailed terms…will disappoint those who are arguing for a more open nomination process.”

There are two relevant aspects to that. First, that was not the sort of comment that would be made if it was anticipated that 800,000 people would demonstrate and occupy the centre of the world’s third financial centre for weeks. Those who saw the dark hand of foreign forces behind the demonstrations were well wide of the mark, as the statement on 3 September demonstrates. Secondly, the reaction in Hong Kong was not anticipated here, and perhaps not in the offices of the Hong Kong Government and the Chinese Government either. The reaction caught all three by surprise.

There is a question about why that is so, but it is my belief that most of those in Hong Kong who feel most strongly about the issues around the election of the next Chief Executive represent a new generation of Hong Kongers. They were mostly born after the joint declaration. They are not, as has sometimes been claimed, ancient colonial sentimentalists or those left by dark foreign forces to create disturbance after the colonialists had gone, but a new generation with a different take on life from their predecessors. They are more sure of their Hong Kong identity, less sure of their future prospects and less trustful of Government or leaders in whose appointment they still feel they do not have enough say.

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

I congratulate my hon. Friend and neighbour on securing this debate. Would he care to consider that some of the protesters’ motivation might be that they feel left behind by the current state of economic progress in Hong Kong? They are not participating in the economic miracle that has taken place there in the past two or three decades, which is strange when the latest economic plan in China envisages taking 10 million poor people on the mainland into the work force each year to increase prosperity.

[Richard Graham]

My hon. Friend and neighbour takes a close interest in these matters, not least as chairman of the Conservative Friends of the Chinese. He makes a good point. There is a dichotomy. In simple terms, it is that while the generation of Hong Kongers immediately after the second world war were focused on rebuilding the territory and restoring their lives after a disastrous period in Hong Kong’s history and their children in the ’80s and ’90s were focused on economic progress, self-advancement and taking Hong Kong to an international stage, today’s generation perhaps feel that their prospects for mobility, owning property and enjoying a satisfaction with life comparable with their parents are less certain.

They have more questions, as I mentioned, and are perhaps more sensitive to issues that did not really exist 30 years ago, such as increasing environmental concerns and air pollution, which is a major issue throughout China, including Hong Kong, as my hon. Friend the Member for The Cotswolds (Geoffrey Clifton-Brown) knows. There is more uncertainty, but I sense a strong feeling of identity among the new generation. They are Hong Kongers and want to celebrate that by having more of a civic say in decisions made on their behalf.

--- Later in debate ---

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

Thank you, Mr Weir, for allowing me to catch your eye in this debate. I should declare an interest: I am chairman of the Conservative Friends of the Chinese and a regular visitor to Hong Kong and mainland China, and I have always taken a close interest in Chinese and Hong Kong matters.

I congratulate my good neighbour, my hon. Friend the Member for Gloucester (Richard Graham), on securing the debate. He was absolutely right in his opening remarks to say that there might have been some misunderstanding among some of the Chinese authorities and that some might think that we should not be debating the subject. Under the terms of the joint declaration, however, we should be debating it. As I will come on to say, there are huge British roots in Hong Kong and a huge love of Hong Kong in this country. We want Hong Kong to prosper. What I have to say might be controversial to a small degree, but I hope that it will be seen positively as only wishing the best for Hong Kong and its people.

The debate is important, as my hon. Friend said, largely because of how vital an asset Hong Kong is to both the United Kingdom and mainland China. The United Kingdom and Hong Kong share economic, social and historic links. Those strong links are natural considering that only 17 years ago sovereignty over all parts of Hong Kong was transferred to China as a result of the joint declaration. That joint declaration between Deng Xiaoping and Margaret Thatcher was visionary and envisaged “one country, two systems”. The statement still endures today.

Hong Kong has continued to grow as an international powerhouse with strong links not only to the UK, but around the world. It serves as China’s financial centre and as a major part of the Chinese economy. The links between the economies of Hong Kong and the UK are huge: 40% of British investment in Asia goes directly into Hong Kong, which amounted to almost £36 billion at the end of 2012, including goods and services. We export £7 billion-worth of trade to Hong Kong.

British companies are always extremely welcome in Hong Kong and it is a fantastic place to do business, thanks to a system with low levels of bureaucracy, simple taxation and contracts based on English law. About 130 British companies have regional bases in Hong Kong, and many countries around the world see it in a similar light. Indeed, Hong Kong comes second in the world’s rankings for ease of business, while the UK’s place is 10th. The success of Hong Kong must be protected from any instability that could threaten further progress.

Hong Kong has prospered while maintaining its rights and protections under the joint declaration, of which we and mainland China are joint signatories, such as the rule of law, the high level of autonomy, the free press, freedom of speech and, importantly in the current situation, the right to demonstrate. That has all been achieved under the “one country, two systems” principle, which has clearly worked well, although perhaps not as imagined at the time of the handover in 1997. We must ensure that the principle continues.

Economic success, however, has created a divide between the business elite and the ordinary people of Hong Kong. That is what the protests are all about. Student protesters feel that the business elite have too much control. The rest are not participating fully in the rise of Hong Kong’s economic prosperity.

The suggested Selection Committee to choose suitable candidates for election as Chief Executive seems to be business-dominated: pro-Beijing and not representative of poorer citizens outside the business elite. As I said in my intervention, it is surprising that the PRC does not want poorer people to participate given the latest economic plan, the figures of which are worth repeating because they are so staggering. The latest economic plan produced by the new leader, Xi Jinping, envisages that GDP in China will grow from $6,600 a head to more than $9,000 a head, across its 1.25 billion people. That would be a staggering achievement within the plan period: the country will have to achieve a growth rate of 6.7% every year of the plan. Staggeringly, as I said to my hon. Friend, China will need to bring 10 million people—poor people—into the work force each year to achieve that.

It seems odd that the Government of the PRC want more and more poor people on the mainland to participate in the economic growth there, but are not yet permitting that to happen in Hong Kong. Our Government need to consider that carefully.

Although on the face of it the protests are about the progression of electoral reform, it is evident that they go deeper: they are about the desire of people outside businesses to be considered more. For example, there are only two dairy producers and two supermarkets in Hong Kong, which means high food prices for Hong Kong residents. As we know, high food prices affect poorer people the most—young poor people in particular.

The important message of this debate is that we want to see gradual change in the situation. As I have said to the Chinese press, ultimately this is an issue for the People’s Republic of China, the Government of Hong Kong and the people of Hong Kong to resolve. Electoral reform has progressed within the framework of the Basic Law, and universal suffrage is the ultimate aim. That process has been developing since the 1997 handover. Every election since then—I must stress this point—has been more open and democratic than the previous one. The Election Committee for the Chief Executive began with 400 representatives, was expanded to 800 and now has 1,200 from 38 subsectors. We want that progress to continue.

[Richard Graham]

On that specific point, does my hon. Friend agree that we want to see things change not because we have an obsession with a particular democratic model but because a situation in which the current Chief Executive is known as 689, referring to the number of people who voted for him in the previous election, is unsatisfactory when there is a population of around 7 million? The better the arrangements and the more people who can have a say in the election, the stronger the mandate and, therefore, the greater the stability that there will be for the leadership of the territory of Hong Kong.

[Geoffrey Clifton-Brown]

My hon. Friend raised one of those issues in his speech. I agree that if the Chief Executive is elected on as open a mandate as possible, with suffrage that is as universal as possible, there will be a better perception of the process among the people of Hong Kong. I will come to what I think will happen if that does not occur. I agree that we need to move towards a situation in which the candidate elected as Chief Executive is perceived to be representative of all people and all sections in Hong Kong society, including the young and poorer people.

So far, the authorities have given little indication that they are willing to provide consensus in their current offer. The UK Government need to urge them to consider genuinely and listen to the protesters’ concerns. An open consultation is needed, as the problem will not go away. The Chinese Government must allow change and gradual reform to continue. If they do not provide for that, feelings of resentment will fester and when the issue comes up again in 2022—as it surely will—the feelings and protests could be much more serious, deep-seated and profound than they are at present. It is surely in everybody’s interests that we see gradual reform.

Electoral reform was always going to be gradual under the Basic Law. Everyone agrees that that is the best approach, including many pro-democracy supporters in Hong Kong. It is also likely to be supported by the Chinese Government, who have their own concerns given the large number of Chinese visitors to Hong Kong. Step-by-step progress would avoid instability for wider China.

However, we need reassurances from the Chinese Government about the principles in the White Paper they recently produced for Hong Kong, which included an obligation for judges to swear an oath of allegiance to the state on election; those proposals need to be examined carefully. Judicial independence was one principle enshrined in the joint agreement and is of utmost importance to Hong Kong in maintaining its current success in the world. We must be clear that nothing should prevent the continuation of that independence, particularly in any case where an individual is challenging the state’s actions in the courts. Such cases must be allowed to continue, and judges must be able to judge them impartially.

It is encouraging that we have not seen large-scale attempts by either the Chinese or Hong Kong Governments to silence the protesters, although, as my hon. Friend said, the BBC website has been blocked in mainland China. That is regrettable. As he and I have both stated, one article in the joint declaration is a commitment to a free press. It is in everybody’s interests that nothing is hushed up by either side, so that we can have a full and fair picture. In this day and age, people will find ways around the jamming of electronic media, so we should encourage full openness. I am greatly encouraged that the current Chief Executive has extended offers to talk to the protesters, although those talks need real substance and should not be merely a smokescreen.

In conclusion, I reaffirm that Hong Kong is the economic jewel in China’s crown.

[Geoffrey Clifton-Brown]

That would be the ultimate aim, but I have been quite cautious in my speech. We want gradual change. I am not sure whether we will get to the point my hon. Friend sets out in time for the elections in 2017, but I would hope that we would do so by the elections in 2022.

[Richard Graham]

My hon. Friend the Member for Cheltenham (Martin Horwood), who is also a constituency neighbour, raises an interesting question. After the earlier consultations in Hong Kong, there was a recommendation by 18 academics that the authorities should look into a method for public recommendation of candidates. I believe that nothing in that idea runs counter to what has been announced by the National People’s Congress standing committee, so it could be an opportunity for the Hong Kong Government to tackle part of that issue. Will my hon. Friend comment on that?

[Geoffrey Clifton-Brown]

My hon. Friend raises a very interesting point. I urge our Government to examine that plan and possibly hold discussions with the Chinese Government to see whether there might not be a way through on that issue, along the lines suggested by those academics.

As I said, Hong Kong is the economic jewel in China’s crown.It is surely in China’s interests to ensure that Hong Kong continues to prosper. Large business and capital are very portable in the 21st century. If financial and commercial communities conclude that the governance of Hong Kong is not going in the right direction, Hong Kong’s importance will surely diminish and competitors such as Singapore will overtake it.

It is in everybody’s interests to maintain Hong Kong as a strong financial and commercial hub. But I will say this: if the mainland Government of the PRC do not listen to the protesters’ concerns and work to bring about gradual, step-by-step change and peaceful electoral reform under the Basic Law, along with a situation in which all sections of society share in the prosperity currently enjoyed by the elites, Hong Kong will gradually diminish in importance. We need to ensure that all its millions of people share in its continuing and, I hope, increasing economic prosperity.