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Apparent breaches of the Joint Declaration

APPARENT BREACHES OF THE JOINT DECLARATION

Speaking in the Legislative Council on Wednesday 8th May 1991, the Financial Secretary acknowledged that the Hong Kong Government was aware that the Trustees of the Land Fund had made substantial investments, from monies under their control, in the purchase of shares in Hong Kong Telecom Ltd valued at HK$255 million, in 1988 and in Hong Kong International Terminals Ltd valued at HK$795 million, earlier this year.

Annex III, paragraph 6, of the Joint Declaration states that:

"The Hong Kong Special Administrative Region Government's share of the premium income from land transaction shall be deposited in banks incorporated in Hong Kong and shall not be drawn on except for the financing of land development and public works in Hong Kong in accordance with the provisions of paragraph 7(d) of this Annex."

While the Hong Kong Democratic Foundation is of the opinion that these investments are of a sound financial standing and that investments of such a nature may well be a constructive and beneficial use of the Land Fund's assets, never the less they do appear to be in breach of the Joint Declaration.

The Hong Kong Democratic Foundation view the Joint Declaration as the bedrock of the "One Country Two Systems Concept" and believes that it is imperative no aspect of this be changed without the requisite lawful and constitutional processes being followed.

Taken together with demands alleged to have been made by the Government of the People's Republic of China during negotiations over the Port and Airport Development Scheme and with reports concerning difficulties arising over the discussions in the Joint Liaison Group concerning the establishment of the Court of Final Appeal, we are very much concerned that a sustained assault on the integrity of the Joint Declaration is in progress.

Accordingly, the Hong Kong Democratic Foundation wishes to urge Members of the Legislative Council to take the following action:

1. To seek assurances from the Hong Kong Government that it will take urgent action to persuade the British Government to see that redress is effected in respect of any breaches of the Joint Declaration that have already taken place and that an explanation of these is given to the people of Hong Kong through the Legislative Council
   
   
2. To request the Hong Kong Government to urge the British Government to give an undertaking and seek a similar undertaking from the Government of the People's Republic of China that neither of them will take any action in the future that would contravene the provisions of the Joint Declaration
   
   
3. Impress upon the British Government that should it be considered desirable by them or the Government of the People's Republic of China that changes in any provisions of the Joint Declaration or Basic Law be effected, full consultations are undertaken and any changes agreed are implemented in a lawful and constitutional manner. In this respect, the Hong Kong Democratic Foundation would urge that the necessary changes be made to the Joint Declaration to enable investments of the nature of those already entered into in respect of Hong Kong Telecom Ltd and Hong Kong International Terminals Ltd to be undertaken lawfully in future.

17 May 1991
Hong Kong Democratic Foundation