US Consul-General James Keith raised concerns over the interpretation

Washington's top representatives in Hong Kong have added their voice to the on-going dispute rising from the recent announcement that the National People's Congress Standing Committee (NPCSC) will interpret provisions in the Basic Law. US Consul-General James Keith, speaking after a meeting with Constitutional Affairs Secretary Stephen Lam, raised concerns that the interpretation would affect the city's autonomy.

"We would like to promote ... everything that moves Hong Kong in the direction of fulfilling our highest expectations for the high degree of autonomy. Therefore we hope this issue of interpretation will also fit into that context", he said.

Mr Keith said that the NPCSC's interpretation would not necessarily create a constitutional crisis, if the outcome met the demands of the people for a greater level democracy. "If the Hong Kong government [complies with] the people's aspirations towards ... democratisation, and if the central government is prepared to fulfil those aspirations, then as far as I am concerned that is a matter of political will and there won't be an obstacle in terms of constitutional law," he said.

He also added that the impact of the decision on foreign investment was difficult to gauge, as it depended on the outcome of the interpretation. "It is crucial to the investment climate in Hong Kong that a high degree of autonomy be maintained," Keith said, because it affects "the decisions that individual investors make . . . Everything that moves Hong Kong in the direction of fulfilling our high expectation for a high degree of autonomy is to the good."

Also on 29 March the US consulate issued its first formal statement on the subject of the planned Basic Law interpretations. A consulate spokeswoman said the maintenance of autonomy and the rule of law was essential for stability and prosperity in the city. "The US supports greater democratisation in Hong Kong through electoral reform and universal suffrage," she said, adding that it is crucial that the SAR government moves towards the ideal of an administration that fully represents public interests. "We believe that an open society with the highest possible degree of autonomy and governed by the rule of law is essential to maintaining stability and prosperity in Hong Kong." "Events of the past year", including the July 1 protest, "amply demonstrated the desire of the people of Hong Kong to advance the democratisation process."

Meanwhile, the Foreign Ministry in Beijing has repeatedly warned against foreign interference in Hong Kong's democratic development, saying that discussions over Hong Kong's political development are the internal affair of China. This statement from the US Consulate is timely and important. If, as predicted, Beijing uses these interpretations to draw Hong Kong's political reform more firmly under its control, Beijing will have to face the reaction of the United States.

Meanwhile, Financial Secretary Henry Tang Ying-yen refuted Keith's worries about investment. He said he supported the interpretation, saying it would bring stability to Hong Kong. Speaking at a seminar in Shenzhen, Tang said the move would not impact greatly on foreign investment, as investors were concerned mostly with investment returns. Moreover, he argued that the interpretation would help to reduce differences in society generated by the present debate. "I think it may help [the economy] because, right now, there is a huge divergence of views in the community on political reform. This may trigger fears among investors. What is most important at this juncture in Hong Kong's ongoing evolution is for the Hong Kong government to consult fully with the people on measures to implement the Basic Law and move towards a government that more fully represents the interests of the people," he said.