Speeches and Articles by Former Consul General Richard A. Boucher

Remarks by Consul General Richard A. Boucher
to American Chamber of Commerce
Hong Kong
September 15, 1997

We have spent many years now analyzing the prospects of political change in Hong Kong, always emphasizing that things should stay the same. That is indeed the basic outlook for many of us. But, keeping things the same is too low a standard for Hong Kong; Hong Kong is a dynamic city which needs to develop. Today, as the American business community gathers to discuss Hong Kong in the year 2000 it is a good time to address how the U.S.-Hong Kong relationship and our interests here can develop.

I have just returned from Washington where I participated on the U.S. side in the discussions we had with Hong Kong's Chief Executive, C.H. Tung. Let me first talk briefly about that visit and then use that to turn to some more general observations on our future relationship. The visit, I believe, was a great success for both sides and set a strong, dynamic and positive tone for our future relationship.

The relationship between the U.S. and Hong Kong is based on shared interests, common goals, universal values and personal ties. The visit demonstrated all of these; and in the many American officials, businessmen and journalists and ordinary citizens, who spoke with Mr. Tung, we saw the depth of interest and genuine warmth of Americans for the people of Hong Kong.

In our meetings with the Chief Executive, we reviewed the many areas of excellent cooperation between Hong Kong and the United States and looked for how we can expand that cooperation. We talked about areas where we can work together in international fora to promote the free trade and investment policies which have brought prosperity to both the United States and Hong Kong. Senior leaders in the United States, both in the administration and in Congress, also heard directly from Mr. Tung about his determination to make "one country, two systems" work, to preserve the freedoms which are so much a part of Hong Kong's success, and to continue on the path of democratic progress which is laid out in the Basic Law.

We welcomed those commitments and encouraged him to maintain and even accelerate progress towards more open, representative and accountable government institutions. At the highest levels, the President, the Secretary and members of Congress expressed our appreciation for the success so far and pledged to continue to support and cooperate with Hong Kong in every possible area. Americans want Hong Kong to succeed as a Special Administrative Region of China with a high degree of autonomy. The discussions provide an excellent foundation for our new relationship and a long agenda for those of us here to carry out with our Hong Kong counterparts.

Let's now look at the relationship and how it can develop. Hong Kong continues to be an important international hub and a base for the development of international trading institutions. American interests in Hong Kong have continued to grow this year right past July 1: our economic and commercial involvement, our law enforcement cooperation, U.S. Navy port calls, and cultural and educational ties. Revised estimates indicate that about 50,000 U.S. citizens now live in Hong Kong. That means the American community here has doubled over the past five years. Investment is also up. The U.S. Department of Commerce has revised the 1995 figures for cumulative U.S. direct investment here upwards to 14.2 billion U.S. dollars. Preliminary figures for 1996 show a 13 percent increase, to 16 billion U.S. dollars. And, on top of that we have tens of billions of dollars invested here through Hong Kong's financial markets and funds.

On the official level that I represent, the foundations of this renewed friendship are all in place. Our Consulate General is operating in a newly renovated building, which was rededicated on July 1 by Secretary of State Madeleine Albright. We are also successfully coordinating U.S. Navy port calls with the Chinese Ministry of Foreign Affairs.

We would like to expand our areas of cooperation. We can work together to expand our environmental cooperation and deal with some of the problems which affect us all in this region. On the trade and financial side, as we cooperate in the Asia Pacific Economic Cooperation forum and the World Trade Organization, the United States and Hong Kong have been consistent and clear voices pressing for tariff reductions, more access to markets, and eliminating regulations. That must continue and develop.

We have seen considerable success in Hong Kong's efforts against illegal textile transshipment. We are looking for equal success in fighting the theft of intellectual property. Software and video piracy not only harms American exporters but steals from the legitimate earnings of Hong Kong's creative artists and singers. It sets back Hong Kong's aspirations to become a high technology center and has no place in a global business center.

There are other areas as well where we look to do more together and pursue our common interests: protecting sensitive technology and ensuring that Hong Kong's excellent facilities are not used to broker the exchange of weapons. We continue to enjoy a close partnership with Hong Kong authorities through our judicial agreements and by carrying out law enforcement cooperation. We also want to engage Hong Kong in the international fight against money laundering, a crime which is naturally attracted to one of the world's great financial centers. In all these areas, our relationship can be strengthened.

Similarly, as we talk about preserving what has made this city great, we always cite a few fundamental factors: the rule of law; an open environment of free and easy access to information; a clean and efficient government. But, none of these areas is fixed or static. For example, when it comes to information, traders and brokers look for new and even broader sources of uncensored information to develop in Hong Kong. Capital markets that finance more and more investment inside China will also need more and more information about what is going on inside China in all respects.

We watch with interest as we see the new programs and efforts of the Independent Commission Against Corruption to educate and prevent the degradation of standards or as we see the Hong Kong Securities and Futures Commission develop measures to properly regulate new listings in an even more complex regulatory environment. We are especially interested in how Hong Kong's democratic institutions develop, because they determine the overall legal environment in which all of us, including the Americans here in Hong Kong, can live and work. We've made it clear that we are interested in the development of institutions, including a fairly-elected and fully-representative legislature, that make a vital contribution to ensuring the integrity of the system and ensuring that change follows the wishes of the people of Hong Kong.

We will also take a great interest in proposals on housing, education and competitiveness. These directly affect the convenience and the cost of doing business here. Improvements in Hong Kong's social environment and quality of life can only enhance Hong Kong's vital role in international business. So, what's the bottom line? We hope Hong Kong will remain the dynamic, flexible catalyst for change which it has been in the past. That it will continue to change in the direction that Hong Kong people have set for themselves, within the excellent framework of the Basic Law and the Joint Declaration. We hope that Hong Kong will continuously improve its clean and efficient governing environment; will continue to protect and expand the free flow of information; that it will continue on its path towards ever more open government responsive to the people of Hong Kong; and that it will continue to improve business conditions. The direction, the dynamic and the determination that have characterized Hong Kong are what we hope to see continue. And, above all, we know that continued progress in all these areas will be matched by continued progress in Hong Kong's relationship with the United States and with U.S. business.

We look forward to helping build the stable but flexible environment that will carry us all into a bright future. There's a lot of work to do. I think we can all look forward to doing that work together.

Thank you very much.

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