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

THE WHITE HOUSE

Office of the Press Secretary

For Immediate Release
September 12, 1997

PRESS BRIEFING BY MIKE MCCURRY

The Briefing Room

2:49 P.M. EDT

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Q: President Clinton's meeting with Chief Executive Tung Chee-Hwa -- could you please tell me if Clinton did bring up changes to Hong Kong's electoral system and, if so, what was Mr. Tung's response? And also, just in general, briefly, what did they talk about?

MR. MCCURRY: Well, they -- I've got a longer statement -- I can cover some of it for you. But they had a very broad-ranging meeting that covered the host of issues associated with the very positive U.S.-Hong Kong relationship. They did cover some of the issues that you just cited. The conversation spanned economic issues, related both to trade and our interest in continuing what is a very vibrant commercial relationship we have with Hong Kong, involving, I think, some $24 billion worth of trade. There is over $14 billion invested by U.S. investors in Hong Kong so it's a very fundamentally important economic relationship, and clearly, they spent a great deal of time on that.

They've talked about, of course, the transition -- the President expressed our support for and interest in Hong Kong's new status. He talked about, as I just said, the magnitude of U.S. interest in Hong Kong and how important it is for Hong Kong to have strong support for the kind of trading practices that allow this commerce to unfold.

The President talked about the importance of intellectual property rights, called for a bilateral investment agreement between the U.S. and Hong Kong. Mr. Tung assured the President that Hong Kong's export control regime will remain strong as well as its enforcement of intellectual property rights.

On political matters, the President expressed his disappointment in the decision to reverse Hong Kong's legislative election reforms. You recall, that's changes that have been made in the LEGCO -- the Legislative Council -- that existed prior to the turnover. The President said that we will be watching events when it comes to the political status of institutions in Hong Kong very closely. He said that we are encouraged that so far basic freedoms, such as freedom of the press, speech, and the right to demonstrate, were being protected. The President did indicate that that was a source of great concern to the American people and would be one that he as President, on behalf of the American people, would obviously continue to follow closely.

Mr. Tung defended his proposed change in Hong Kong's election law. He said that Hong Kong was determined to protect its basic freedoms, the rule of law, and to develop democratic institutions. He reaffirmed what he has said on other occasions publicly, that he is committed to the aspects of the basic law that would allow for certain changes in the composition of the democratically-elected LEGCO to unfold.

I've got a longer statement that we are going to make available that provides some additional details on what was a very good and productive meeting.

Q: But would you say it's fair that he did press him to continue, or to strengthen the process toward democratization?

MR. MCCURRY: I think that is an accurate characterization, and it was a conversation that was held warmly, but it did reflect the candor with which the President addressed that issue of the need for democratization and continued progress towards electoral reform.

Q: And did he express concern over some recent steps that have been taken in Hong Kong?

MR. MCCURRY: As I just indicated, yes.

Q: Specifically?

MR. MCCURRY: They made changes, Wolf, in the composition of the Legislative Council there. And as we have elsewhere, through the State Department and others -- Secretary Albright, of course, raised this when she was there -- the President reinforced the concern that the United States government has expressed on prior occasions.

Q: -- describe the atmosphere, when they discussed this part on reforms in Hong Kong as very defensive, or how would you describe the atmosphere?

MR. MCCURRY: Oh, the atmosphere of the discussion was productive, it was candid. I think that Mr. Tung is a very able representative of the people of Hong Kong, and he described in very great detail his own actions. And I think that's consistent with much of what he has said publicly. And the President, equally, raised his concerns in a direct manner. But it was a very cordial conversation.

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Q: Mike, did the President see Mr. Tung as the spokesman for China --

MR. MCCURRY: He saw him as the Chief Executive of Hong Kong, reflecting the status that Hong Kong has within China and reflecting what is -- the Chinese accurately describe as the one China-two systems formula.

Q: -- no discussion about the ability of China --

MR. MCCURRY: I have -- nothing relayed to me got that specific into the substance of the conversation. I believe that they talked about trade. I think they certainly exchanged views on the United States' attitude toward the People's Republic. I think the President did discuss his upcoming opportunity to meet with President Jiang Zemin. But the level of detail they got into I'm just not briefed on at this point.

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Q: Back to the package discussed in the meeting of Mr. Tung and President Clinton. Can we say that they are understand the different stand of the other side but not convinced? I mean, the President was not convinced by Mr. Tung's appreciation?

MR. MCCURRY: I think they had an amicable exchange of views here, but it was an exchange. And there clearly are a set of views that are held by the United States government and a set of views held by the Chief Executive. And while they were not identical, the discussion was cordial and the exchange amicable.

Q: How would the President -- description of Hong Kong after the takeover --

MR. MCCURRY: Our assessment has been that there have been aspects of the turnover that have gone smoothly. And as I said, we -- the President said that he was encouraged by some of the things and welcomed some of the efforts to make the transition -- the time since the transition smooth. And there are features of that we have expressed gratitude for and elements of the transition that we've expressed concern about.

Q: Subject of speech tomorrow night and the week ahead?

MR. MCCURRY: We ready? Anything else before we kind of end up on the schedule?

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Q: Why does your government propose to have a bilateral agreement with Hong Kong on intellectual property rights? Does your government think that --

MR. MCCURRY: It's a bilateral investment treaty; it's a BIT. We have proposed a bilateral investment treaty similar to those that we have with other governments that would specifically cover intellectual property rights as well as a range, compendium issues that are normally covered under an investment treaty.

MS. LUZZATTO: And then they discussed intellectual property protection.

MR. MCCURRY: Oh, yes. The President proposed that we pursue a bilateral investment treaty, but then he also raised, in addition to that, our concern about intellectual property rights issues and received, as I indicated, the reassurances given by Mr. Tung.

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END

3:29 P.M. EDT