Speeches, etc.

Margaret Thatcher

HL S [Hong Kong]

Document type: Speeches, interviews, etc.
Venue: House of Lords
Source: Hansard HL [571/1200-02]
Editorial comments: 1901-1908.
Importance ranking: Major
Word count: 868

7.1 p.m

Baroness Thatcher

My Lords, I, too, am grateful to Lord Willoughby de Brokemy noble friend for initiating this debate and I am happy to follow the noble Lord, Lord Wilson, who as governor, and like his successor, showed great leadership qualities in Hong Kong over a difficult period.

When I look back over the 12 years since Mr. Deng Xiaoping and I agreed the Joint Declaration on Hong Kong's future, I am enormously encouraged by how well Hong Kong has done. The doomsayers who predicted decline, or even disaster, as 1997 drew closer underestimated the resilience and irrepressible energy of Hong Kong's people. Hong Kong today is a city in its prime, a thriving centre of enterprise, perhaps the most entrepreneurial community in the world. Its people have [column 1201]built their economy into one of the world's leading centres of trade and financial services, and at the same time steadily made their way of life and governance more open and democratic.

When I was last in Hong Kong in January, I visited the remarkable new Tsing Ma Bridge, which will be the world's largest single-span suspension bridge, leading to the spectacular new airport. These are not new projects devised and carried out by people who are depressed and frightened about what lies ahead. Rather, they exude optimism about the future and confidence that the talents and initiative of Hong Kong's people will continue to have full rein after 1997.

That confidence is visibly shared by the world's business community which continues to invest in Hong Kong, to establish offices and regional headquarters there and to plan for the further expansion of its business. I understand that in the past 12 months alone the number of British people living and working in Hong Kong has actually risen by 11,000.

So looking forward, there are good grounds to expect that Hong Kong will flourish after 1997, as we envisaged when we negotiated and signed the Joint Declaration. I certainly believe that it will. China has the greatest interest of all in seeing Hong Kong prosper. After all, why else did China agree in the Joint Declaration that Hong Kong's way of life and free market system based on a rule of law should continue unchanged for 50 years after 1997, if it was not because it wants Hong Kong to continue to do well?

Of course the years since 1984 have provided their share of difficulties and problems. These things never go without a hitch. China obviously had problems in coming to terms with the practical implications of one country, two systems, especially as Hong Kong's way of life and degree of personal and political freedom are very different from China's own. These differences—and they are profound—have led China to misjudge the effect of some of its actions both on opinion in Hong Kong and on international opinion generally. That is particularly true of China's unfortunate, and I believe unjustifiable intention, to dismantle Hong Kong's elected Legislative Council. All speakers have raised that point. That would not be consistent with the Joint Declaration. To turn back the clock on democracy in Hong Kong—modest as that democracy is—gives Hong Kong and the world precisely the wrong signal about China's future intentions.

The best possible start for China in 1997 would be to keep the present members of the elected legislature unchanged until the due time of the next elections. Magnanimity is not seldom the truest wisdom, and I think it is better than pragmatism.

Some of China's statements have also destabilised Hong Kong's outstanding Civil Service, whose continued willingness to serve the new sovereign power as loyally and effectively as it has served the British sovereign power is absolutely crucial to Hong Kong's future success. I am glad to see that the Chinese Foreign Minister reassured our own Douglas HurdForeign Secretary on this point when they met at the weekend. [column 1202]

I hope too that our Chinese friends will consult not only those in Hong Kong who share their views but also those who think differently. Hong Kong is not a monochrome city where everyone holds the same opinions: it would never have been so successful if it were. In its own interest China should hear the widest possible range of views before reaching its decisions. The world will view the manner in which China resumes sovereignty over Hong Kong as a crucial test of how she intends to behave internationally. It is thus an opportunity for her, and I urge China to act in a way that shows that the fears which exist about her actions and intentions are misplaced.

I believe that the Government, with the Opposition's support, have carried out honourably their duty to work for a smooth transition. Moreover, as the Prime Minister has said, Britain's obligations to Hong Kong and its people do not end on 1st July 1997, bearing in mind that the Joint Liaison Group continues its existence until the year 2000. We must therefore continue to take a close and sympathetic interest in Hong Kong's future and in everything which happens to it after 1997. We should also maximise our trade and commerce with both Hong Kong and China. I believe that the unique spirit of Hong Kong's people, the skills of its Civil Service, the acumen of its businessmen and the wisdom and self-interest of China will ensure that the passage from British sovereignty back to China will be a safe one.