Speeches and Articles by Former Consul General Richard A. Boucher

Hong Kong and the U.S.-China Relationship

U.S. Consul General Richard Boucher's Speech
at Friends of Hong Kong Association Luncheon
June 16, 1997

Thank you for inviting me here to speak to you today. I am delighted to have this opportunity to learn more about your organization and to meet some of you for the first time. I have been asked to talk to you about how Hong Kong can contribute to a positive relationship between the United States and China. I will say a few things about that, and then I will be happy to listen to your comments.

Many people ask: why is the United States always speaking out about developments in Hong Kong? Why do American Senators and Congressmen visit Hong Kong is 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, Secretary Christopher before her, and the Speaker of our House of Representatives 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 historic and crucial time in Hong Kong's history. The most important thing to remember, however, is that we believe 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 one of the major investors in Hong Kong. We are Hong Kong's second largest trading partner, behind China. There are over 40,000 Americans who live here and over 1,200 American companies which do business from here, almost half of them for 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, United States and Hong Kong law enforcement officials cooperate here effectively to make life safer for us 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 US $50 million in Hong Kong per year. Finally, Hong Kong people and Americans visit back and forth, go to school 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 survey last December by the American Chamber of Commerce they reported that 95% saw the future as "favorable" or "very favorable." How can these ties be preserved? They 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 because there is a clean legal 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 and need to ensure that the 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-- rest in fact on these foundations. Any compromise of civil liberties is 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 they will protect the interests of China and of the people of Hong Kong in their own future.

So I guess the answer to the question, how can Hong Kong contribute to a positive Sino-U.S. relationship, is to say that Hong Kong should just go on being Hong Kong. Hong Kong and China by implementing "one country, two systems" make Hong Kong a regional business center. Our interests and Chinese interests here are the same. A successful transition in Hong Kong will in fact lead to a strengthening of U.S. ties with China, in business and in many other areas of cooperation.

Americans, and the U.S. Congress in particular, hope to be able to look at Hong Kong a few months after the handover and a few years after the handover, and see the same strength and vibrancy we do now. If the pledges contained in the Joint Declaration and the Basic Law are upheld, if Hong Kong is governed by Hong Kong people, and Hong Kong's present way of life truly continues, that will demonstrate that China has stood by its commitments. It will show that China is open to the presence of a second system within the one country and that fact also has profound implications. And if that happens, then Hong Kong will have been an important building block in this vital relationship between the People's Republic of China and the United States.

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, openness. We believe this city has a future as inspiring as its past and we intend to be here to participate in the new era.

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