U.S. and Hong Kong (1985-1997)

SECSTATE ADDRESS IN SAN FRANCISCO JUNE 24, 1997

Following is the State Department transcript:

(begin transcript)

U.S. DEPARTMENT OF STATE
Office of the Spokesman
(San Francisco, California)
June 24, 1997

ADDRESS BY
SECRETARY MADELEINE K. ALBRIGHT
TO THE COMMONWEALTH CLUB

San Francisco Hilton Hotel
San Francisco, California
June 24, 1997

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This continuum is reflected in the event that has brought me to this side of the Pacific en route to the other. For on the stroke of midnight Monday, one of the world's majestic places -- Hong Kong -- will be under Chinese sovereignty for the first time in more than 150 years.

This afternoon, while you finish lunch and try to think of polite, easy questions to ask following my speech, I would like to talk both about the promise and the perils inherent in the reversion of Hong Kong and in the choices faced by a rapidly modernizing China as we approach the 21st century. But first, a bit of history.

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The prospects for improved U.S.-China relations, and China's standing in the world, will be affected by what happens on the far side of midnight in Hong Kong six days from now.

Hong Kong has been under foreign control for longer than San Francisco has been part of the United States.

Next Tuesday, it will peacefully re-enter the Chinese nation as the crown jewel of Asia's economic emergence. Although possessing a uniquely international outlook, Hong Kong has retained its Chinese ethnicity and character. And polls indicate that the majority of Hong Kong's people favor its return.

Next week's feasting and fireworks will not, however, tell the full story. The world will be watching to see if Beijing meets its pledge to maintain Hong Kong's autonomy, market economy and way of life for decades to come.

If that pledge is kept, China will benefit from its own huge investment in the Hong Kong economy, while integrating itself more fully into the international community and enhancing prospects for improved relations both within its own region and with the United States. If the pledge is not kept, China's international standing will be tarnished, and the freedom and continued prosperity of the Hong Kong people will be in doubt.

I look forward to representing our country at the transfer ceremony. My presence will reflect America's interests in Hong Kong, which range from our stake in law enforcement cooperation, to the more than 1,100 U.S. companies that operate there, to the example of a Hong Kong whose glittering success is based firmly on free markets and the rule of law.

I will bring to Asia a message of vigorous American support for the continued freedom and autonomy of the Hong Kong people. We do not believe it will be possible to preserve Hong Kong's way of life without preserving civil liberties.

Nor will it be possible to sustain Hong Kong's prosperity without preserving the elements of good governance -- an independent judiciary, a respected civil service, an honest system of customs, an open investment regime and leaders that are accountable to the people.

The United States is a friend to democracy in Hong Kong, as elsewhere. We know that the people of Hong Kong value their freedoms. And we expect those with authority, whether in Beijing or Hong Kong, itself, to meet fully the obligations spelled out in the Sino-British Joint Declaration of 1984 and the Hong Kong Basic Law.

Earlier this year, China arranged the appointment of a provisional legislature to replace the current elected one, and to serve until a new election is held.

The United States believes this action was unjustified and, since the provisional legislature includes 10 members defeated in the 1995 elections, it was also at odds with the popular will. As a result, I will not participate in the swearing-in ceremony for the legislature when I visit Hong Kong. And we will be watching closely to see if free and fair elections for a new legislature are conducted -- as promised -- at an early date.

Last April, President Clinton and I met with Martin Lee, a democratic leader in Hong Kong, who urged America to stay engaged with China on Hong Kong and other issues. He also expressed alarm at the proposal to end "most-favored-nation" or normal trade relations with China. Such an action would cost Hong Kong an estimated 85,000 jobs and $30,000 million in annual revenues.

It is expected that this issue will be voted on by the U.S. House of Representatives -- and I am very happy to tell you, having just gotten the signal, that the resolution to defeat most-favored-nation was itself defeated quite soundly.

Trying to influence China by denying to it the trade status we accord most other countries is analogous to a doctor performing surgery with a crowbar; the intentions may be good, but the prospects for success are not. I thank very much the Members of the House of Representatives who voted with us in doing the smart thing.

Aside from the impact on Hong Kong, ending MFN would severely damage our overall leadership in Asia, while reducing prospects for Chinese cooperation on issues of strategic importance to the United States. These include North Korea, proliferation, Taiwan, the global environment and matters coming before the U.N. Security Council, of which China is a permanent member.

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