Hong Kong

Lord Luce Excerpts

Thursday 16th October 2014 Lords Chamber

Asked by

[Lord Luce]

To ask Her Majesty’s Government what assessment they have made of recent developments in Hong Kong.

[Lord Luce (CB)]

My Lords, I am grateful for this opportunity to take stock of recent developments and for the Government to give their assessment of the present situation in Hong Kong. I am also very grateful to noble Lords for contributing to this debate with their own experience and knowledge of Hong Kong.

Since Britain was a partner in the Joint Declaration of the Government of the United Kingdom and Northern Ireland and the Government of the People’s Republic of China on the Question of Hong Kong, we have an obligation, if not a moral one, towards the people of Hong Kong. I was privileged to be the Minister of State with responsibilities for Hong Kong in the period which led to the 1984 declaration. When that declaration was signed some 30 years ago, many of today’s demonstrators were not yet born. It is therefore worth stressing the background to that declaration.

Under international law, Britain was obliged to return Hong Kong, except for the island and Kowloon, to the People’s Republic in 1997. The only feasible option was to hand over the whole of Hong Kong to China. In doing so, we were conscious of the fact that many people had escaped from the communism of mainland China to seek larger freedoms in Hong Kong. The choice was stark: negotiate the best agreement we could achieve or just hand them over. It was clear that the latter course would have led to the collapse of confidence and of institutions, the decline in business and the emigration of many skilled middle-class people. The only responsible course was to try to persuade the Chinese to agree to preserve every aspect of Hong Kong’s way of life which the British had helped to create over 150 years: freedom under the law, an independent judiciary, free press, free speech, freedom to demonstrate and the free market capitalist economy. The foundations for a democratic system were there but, up to 1984, successive British Governments had been hesitant to develop it.

It was of course the Thatcher Government and in particular the noble and learned Lord, Lord Howe, as the then Foreign Secretary, who led for Britain in the negotiations brokering this remarkable declaration of principles based on one country but two systems, granting the Hong Kong Special Administrative Region a high degree of autonomy. Article 5 sums it up:

“The socialist system and policies shall not be practised in the Hong Kong Special Administrative Region, and the previous capitalist system and way of life shall remain unchanged for 50 years.”

I should stress the fact that Deng Xiaoping gave the go-ahead for these discussions because, he said, he trusted the noble and learned Lord, Lord Howe. The word “trust” is as relevant today in Hong Kong as it was then. We need to acknowledge that it was remarkably enlightened and far-sighted of Deng Xiaoping at that time to draw up a declaration recognising two very different systems in one country.

In these circumstances, it was surely inevitable that there would be severe strains from time to time in reconciling the determination of Beijing to preserve its ultimate authority over Hong Kong with its commitment to respect the sanctity of Hong Kong systems and way of life. We must remind ourselves that, soon after the declaration, the Chinese National People’s Congress developed the Basic Law of Hong Kong which put flesh on the principles expressed in the declaration. One ultimate aim of the Basic Law was to introduce universal suffrage for both the Chief Executive and the Legislative Council. It is also worth noting that, since 1997, the number of directly elected members of the Legislative Council has gradually increased.

I sense two factors that may go some way to explain the very real anxieties expressed in current demonstrations in Hong Kong, which consist of many young people with aspirations for some kind of participation in their political and economic future. First, there has not been real trust and confidence in the methods for choosing the Chief Executives of Hong Kong since 1997 and the extent to which they listen to the views of all Hongkongers. The second point is linked to the first and is focused on the methods for choosing and electing the next Chief Executive in 2017. The National People’s Congress had stipulated that there would be universal suffrage for the 5 million or so registered voters. However, on 31 August, after several months’ consultation with the people of Hong Kong, the National People’s Congress—the arbiters of the Basic Law—announced that all eligible voters may vote for their Chief Executive from up to three candidates but that they must be nominated by at least 50% of the nominating committee of 1,200 people. The Chief Executive will be appointed by the Chinese Central People’s Government, based on the results of the election. The argument has been made that a majority of the committee will be sympathisers of the Beijing Government and that therefore there will not be a transparent and fair system, enabling Hongkongers to choose from a wide range of people. Thereafter, the Legislative Council must decide by a two-thirds majority in early 2015. Failure to do so will mean that the arrangements revert to those in 2012 when the present Chief Executive, CY Leung, was chosen without universal suffrage.

At this point, I stress that I believe that the People’s Republic of China, the people of Hong Kong and the British Government have a vested interest in ensuring that this special commitment to “one country, two systems” works successfully and indeed strengthens over time. China needs to demonstrate to the people of Taiwan that the Hong Kong arrangement could in future be viable for them. Moreover, although Hong Kong is perhaps economically less important to China than in 1997, the financial collapse of the region could have devastating consequences. In Britain, we have a moral duty to Hongkongers to encourage the maintenance of the principles of the declaration. In addition, we have strong financial, trade and educational links of importance to us. It is estimated that the stock of British investment in Hong Kong at the end of 2012 was just under £36 billion, some 40% of British investment in Asia. Some 126 British companies have registered headquarters in Hong Kong. Our total exports to Hong Kong in 2013 were more than £4 billion.

However, it is the future of the nearly 8 million people in Hong Kong that matters more than anything else. There is at present a serious tension between the Hong Kong Administration and many of the people of Hong Kong. I believe that there is now an opportunity for all sides to work for a constitutional mechanism that could gain the confidence of the people of Hong Kong. This would involve discussions between the people of Hong Kong and their Administration about how to introduce in 2017 an election process for a new Chief Executive where the nominations committee is broadly representative of the people of Hong Kong and where there is a free and fair choice of candidates.

The approaching second round of consultations will provide the opportunity to propose improved ways in which the four main sectors of representatives are chosen. The Chinese authorities have repeatedly made it clear that it is for the Hong Kong Government to determine the extent and nature of democracy in Hong Kong, in consultation with the people of Hong Kong. It is surely in everybody’s interest to have a Government in Hong Kong who enjoy the confidence of their people. Hong Kong has a well educated, vibrant population, well equipped to embark on a constructive and calm dialogue with the Government of Hong Kong and to help to construct the way forward.

Over the years, Her Majesty’s Government have produced six-monthly reports to Parliament on Hong Kong, which have been helpful and informative. The Government have repeatedly stressed the need to develop Hong Kong’s distinctive way of life and level of autonomy. I look forward to hearing the Government’s view on the present situation and the importance of finding a solution which commands the trust and confidence of the people of Hong Kong.