Hong Kong

Geoffrey Clifton-Brown Excerpts

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.

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[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.

[Martin Horwood (Cheltenham) (LD)]

Before my hon. Friend concludes, will he be absolutely clear that he and the Conservative Friends of the Chinese support the aspiration of the protesters that candidates for Chief Executive should not be vetted by a nominating committee that could exclude candidates it disapproves of?

[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.

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[Martin Horwood]

Yes, I would agree, and my hon. Friend put the point very well. However, this is also about understanding what universal suffrage really means and ensuring that the democratic process of choosing a leader for Hong Kong is free in a way that is understood by the Hong Kong people and by people in democracies around the world—and that does not include prior vetting by a one-party Government in another part of China.

We must be realistic and honest about the limits of our ability as a former colonial power—we did not actually deliver democracy when we were running Hong Kong—to influence this process. We must be persuasive, but we cannot be confrontational with the Government in Beijing. We certainly must be true to our values, but we must recognise that there are limits. We must try to persuade China that it is in its interests to have a stable and free Hong Kong; that is the basis on which Hong Kong’s prosperity has been built.

As my hon. Friend the Member for Gloucester rightly said, stability is not just about maintaining the status quo. It is in China’s interests that the process that emerges from whatever negotiations take place delivers a Chief Executive who is in tune with the Hong Kong people, not just through the formal process of democracy, but, for instance, in the sense of recognising issues of economic equality in the territory, as the hon. Member for The Cotswolds mentioned. The Chief Executive should not, for instance, make remarks such as those Mr Leung made about the Occupy Central movement when he dismissed it as being manipulated by external forces. That is dismissive of the aspirations of the community-based movement that has emerged in Hong Kong and would not be acceptable in most democratic leaders.

It is important that we try to persuade the Beijing Government not just to save face, but to move in a direction that recognises the aspirations of the Hong Kong people and to do better than we did as the colonial power—to outdo us—in its administration of Hong Kong. Hong Kong’s future stability certainly depends on that.

[Geoffrey Clifton-Brown]

It is not a question of outdoing the United Kingdom as the colonial power. The point my hon. Friend the Member for Gloucester made is important: the whole way of governing countries has changed in the period since the handover. People’s expectations are much greater than they were then, particularly where they can see that part of society has benefited from economic development. For example, house prices are horrendously high in Hong Kong. People complain about them here in London, but they are much higher there, which means it is difficult even for children of fairly wealthy parents to get on the property ladder. Young people and poorer people in Hong Kong see that they cannot aspire to such things, and that is why there needs to be change.

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[Mark Pawsey]

I think the answer is that she was not surprised, because having spent so long there she has come to understand the nature of the Hong Kong people and authorities. She has been happy to observe, and to support—without providing physical support—the principles of those who are protesting. I understand that they are concerned largely about the erosion of what they expected in 1997, and the loss of many of the freedoms they expected. That led to the protests that began in September. My observation is that the protestors would like more democracy than the authorities are currently prepared to admit. That situation arises from the decision of the Standing Committee of the National People’s Congress on electoral reform, with respect to the election of the Chief Executive of Hong Kong, which is of course a very high-profile post.

I understand that the NPCSC will identify two to three electoral candidates before the general public will be able to vote on them. That seems to me to go against the principles set out in the 1997 agreement. In that way, candidates that Beijing might consider unsuitable would be pre-emptively screened out. That would not be considered acceptable in most democracies, and the protesters describe it as fake democracy. That has given rise to the civil disobedience protests. The protesters have the objective of ensuring the right of all to vote; but they would particularly like the resignation of the existing Chief Executive, C.Y. Leung.

[Geoffrey Clifton-Brown]

I do not know whether my hon. Friend saw the report in The Times today, suggesting that the mainland Chinese Government may make the protests illegal. Will my hon. Friend deprecate that and say that the protests should be allowed to continue, provided that they are peaceful, for as long as it takes, until both sides are satisfied that some progress has been made?

[Mark Pawsey]

We are looking at these things very much by our standards. We would certainly want to allow such peaceful protest to continue while the protesters want it to. The notion that it might become illegal would be of great concern to those currently engaged in such peaceful protest.

The Chief Executive’s term comes to an end in 2017. He is a figurehead for the authorities in Hong Kong, but in many ways he seems not to have helped matters. His political career has of course been dogged by accusations that he is unduly influenced by Beijing, and there is evidence of that: on his election the Chinese state newspaper, the People’s Daily, referred to him as “comrade”. He decided to implement some pro-China patriotic lessons in schools in Hong Kong, although that was later vetoed, but that compounded the fears of those who saw him as overly influenced by Beijing. China clearly wants to vet C.Y. Leung’s successors and he supports that, so a big issue for the protesters is that he personally is an obstacle to the pursuit of democratic rights. That is certainly the impression gained by my daughter and her friends.

C.Y. Leung has aggravated the mood of the protesters and those who seek more democracy by recent remarks reported in Tuesday’s South China Morning Post. He said that if the Government met the protesters’ demands, it would

“result in the city’s poorer people dominating elections”

and that

“if candidates were nominated by the public then the largest sector of society…would likely dominate the electoral process.”

That is what democracy is all about and such remarks shock those of us who have grown up with the sort of democratic system we enjoy in this country. C.Y. Leung’s reputation has not been helped by an article in the Sydney Morning Herald on 9 October about what is described as a secret 7 million Australian dollar payout from an Australian firm. That led to questions about the transparency of dealings by a public official.

All that has led to the protests and we are pleased that they have been peaceful on the part of protesters and authorities. The umbrella as a symbol of protest is as unthreatening as can be imagined. Many of the young people and British people who have been attracted to Hong Kong sympathise and find themselves supportive of the protesters who are seeking what westerners have always taken for granted.

There are, however, some concerns. The protests have carried on for so long that the blocking of main thoroughfares such as Admiralty, Causeway Bay and Mong Kok is starting to affect people’s daily life. Journeys that previously took 15 minutes are now taking around two hours as people transfer from road to the mass transit railway, which is usually very efficient. That has led to businesses losing trade and concern within the business sector, with some business people beginning to show their frustration with protesters. It has also led to some ordinary people giving the areas of protest a wide berth, which is having an impact on businesses in those areas.

The big question for us to consider—I look forward to the Minister’s response—is what happens next. I have spoken about the economic impact and it has been suggested that Hong Kong’s tourist industry could face its worst decline in a decade. The protests have already prompted some cancellations of hotel bookings. October and November are typically the peak season for its hotel industry as business travellers arrive for trade fairs and exhibitions and there are fears that business travellers will cut short or even cancel their trips because of safety concerns. How that might develop?

What might the Chinese authorities’ longer-term response be? They have made it clear that there will be no concessions on political reform. They are digging in their heels because the international community might see granting a concession as a sign of weakness by Beijing. Where that might go is a concern and clearly the solution should arise from politics rather than force.

Talks took place between student leaders and the Government only yesterday, but I see them in a less positive light than the hon. Member for Cheltenham (Martin Horwood). They were televised and watched live at protest sites, but the South China Morning Post reports today that nothing has changed and that the Government have simply offered to submit a report to Beijing reflecting public sentiment, and to consider setting up a platform for dialogue on constitutional development. That sounds as good a description of kicking the matter into long grass as we are ever likely to hear, and we often hear such expressions in this place.

Crucially, the Government have said that there will be no movement on the nomination of candidates and the Government’s remarks through Chief Secretary Lam—that protesters should pursue their ideals in reasonable and lawful ways—may indicate that the occupation of public highways might in time be considered unlawful.