Richard A. Boucher - Speeches and Remarks

The United States Outlook on Hong Kong

Remarks by U.S. Consul General Richard A. Boucher
to the Zonta Club of Hong Kong
April 30, 1997

(As Prepared for Delivery)

I appreciate the opportunity to speak to you today as we stand at the threshold of Hong Kong's historic return to Chinese sovereignty. I'm sure many of you have been following developments in the transition process we are currently going through, so I'd like to talk about the U.S. perspective. At the end of these remarks, I will welcome any questions or comments you would like to offer.

Many people ask why the United States is always speaking out about developments in Hong Kong. Why do American Senators and Congressmen visit Hong Kong in such great numbers, and then go home to pass resolutions about protecting Hong Kong's way of life? Why does the President of the United States make himself available to visitors from Hong Kong? In the past six months, President Clinton, Vice President Gore, Secretary of State Albright and Secretary Christopher before her have all discussed Hong Kong's future with senior Chinese leaders. Few issues in the world command such attention.

There are a number of reasons for our interest, particularly at this crucial time in Hong Kong's history. The most important thing to remember, however, is that we believe the United States' interests are really no different than those of the people of Hong Kong or of China. Like the people here and in China, we want the transition to succeed. Like the people here and in China, we want the approach of "one country, two systems" to succeed. Like the people here and in China, we want Hong Kong to remain a prosperous and open society.

American people and firms have long been involved in Hong Kong. At present, we are Hong Kong' second largest investor, behind China. We are Hong Kong's second largest trading partner, behind China. There are currently over 37,000 Americans in Hong Kong, and 1,200 American firms which do business from here, almost half of them dealing with a broader region than just China and Hong Kong. Given Hong Kong's status as a major financial and shipping center, it is no surprise that criminals try to use its facilities for international crime. However, U.S. and Hong Kong law enforcement officials cooperate here effectively to make life safer for Americans and for people in this region. Hong Kong is also a safe and convenient place for the U.S. Navy to visit; about 65 ships with 50,000 sailors and marines spend over 50 million U.S. dollars in Hong Kong per year. Finally, Hong Kong people and Americans visit back and forth, go to school and teach in each others' universities and colleges, share their art and acting, and cooperate in any number of personal and professional ways. These are the ties we value here. These are the ties we want to preserve and see prosper in the future.

Can these ties be preserved? Ask our business people. In a recent survey by the American Chamber of Commerce, ninety-five percent saw the future as "favorable" or "very favorable". How can these ties be preserved? Those who took part in the survey identified 1) the rule of law; 2) freedom of information and 3) anti-corruption efforts as the most important elements. This should be no surprise given the nature of our business here, which benefits from Hong Kong's role as a service economy with regional as well as China focus. Our companies put together deals in Hong Kong that need a clean environment in which to register contracts and adjudicate disputes. They invest in Hong Kong and participate in the financial markets here and don't want to be left with inadequate or incomplete information. They negotiate business transactions and bid on major contracts here worth millions of dollars and need to ensure that the playing field is fair.

These business interests correspond to other broader interests in seeing Hong Kong preserve the kind of unique society which has taken root here. Hong Kong's social, political, and economic systems operate on information, discussion, debate, and legal mechanisms. Hong Kong's unique genius in the business world -- fast moving markets, flexible manufacturing, and the ability to put together complicated deals involving many products, inputs and areas -- rests in fact on these foundations. Any compromise of civil liberties and openness is indeed a compromise in Hong Kong's way of life, its fundamental business prospects and its prospects as a regional center for Asia.

This is not a new concept. It is quite clear from the Joint Declaration and the Basic Law that the pledges of economic and political continuity belong together. Preserving Hong Kong's important economic role for China and Asia, preserving Hong Kong's status as a free port and international center, and preserving Hong Kong's way of life, including democratic government and fundamental freedoms, go hand in hand. These truths were recognized by China and the United Kingdom when they agreed on the vital elements of Hong Kong's future under "one country, two systems". For this reason, it is easy to see that full implementation of the agreements will preserve American interests in Hong Kong just as it will protect the interests of China and of the people of Hong Kong in their own future.

As recently as April 18, President Clinton emphasized this approach. He said: "...Our policy is that the agreement was a good one when we said we supported it in 1984; it's a good one in 1997, and it ought to be honored."

Honoring the Joint Declaration's promises -- autonomy for the Hong Kong Special Administrative Region in all matters except foreign affairs and defense -- will preserve Hong Kong's prosperous, open, optimistic environment. Implementing the Joint Declaration's promises means continuation of the merit-based civil service and of anti-corruption efforts. It means maintaining the protection of rights and freedoms. It means maintaining an autonomous judiciary in the common law tradition. It means maintaining a free, unfettered press and an active legislature. It means maintaining Hong Kong's web of agreements and ties to other countries and international organizations. And, it means maintaining Hong Kong's open and prosperous economy, and its separate monetary system.

As we look at what we know so far about all these important elements, we see a basically positive picture with some important issues unresolved. Many things are going well at this crucial and confusing time, but we have serious reservations about some key elements, especially the maintenance of a free press, of civil liberties and of an active legislature. Hopefully those concerns will be resolved over time by the continuation of an active press and the election of a new, representative legislature as early as possible.

The United States government is doing several things to help promote the success of the transition. First of all, we are making our interest in Hong Kong's future clear. I've already mentioned the top-level statements U.S. leaders have made on the matter. The Department of State also reports regularly to Congress on the progress of the transition.

Secondly, with the signing of our post-transition Consular Agreement during Vice President Gore's trip to China last month, we will maintain an active Consulate General here, covering all the areas of cooperation and service that we do now. We as a government intend to act as a responsible and full partner to the government of the Special Administrative Region of Hong Kong in all the areas of its responsibility. We're not pulling the plug on Hong Kong.

Third, we have also demonstrated our confidence in Hong Kong's future and our intentions of cooperation by concluding bilateral agreements for the period after the handover, which naturally assume Hong Kong's continued autonomy and establish standards for our future cooperation. I have signed a Mutual Legal Assistance Agreement and a Prisoner Transfer Agreement. We also have an Extradition Treaty, signed last November, a Civil Aviation Agreement signed in April, and an agreement for the protection of investments which we are still negotiating. During the Chinese Foreign Minister's visit to Washington this week we agreed on procedures for continued visits by U.S. Navy ships. Ten days ago we announced agreement on visa arrangements. Together all those agreements and understandings constitute the bridges and pathways of our future cooperation with Hong Kong.

Finally, the U.S. government also encourages and supports the continued development of democratic institutions in Hong Kong, as we do around the world. We do this by organizing government exchanges and facilitating private ones, and by providing a wealth of information about democratic institutions in the U.S.

We do these things because we know that Americans want to continue to do business here, to invest here, to visit, to exchange technology and ideas, and to engage in business with China from this unique base in a unique Chinese city. We are interested in Hong Kong's future just as we have been part of its past. We believe our interests are the same as those of the people who live here and of Hong Kong's new sovereign, China: prosperity, stability, vibrancy, and openness. We believe this city has a future as inspiring as its past, and we intend to be here to be part of the new era.

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