16 September 2003

 

Press Release

European Commission adopts 2002 annual reports on Hong Kong

 

European Commission adopts 2002 Annual Reports on Hong Kong and Macao. In its two annual reports on Hong Kong and Macao that were just adopted, the European Commission expresses general satisfaction on the way the "One Country, Two Systems" principle applies.

 

Hong Kong

 

The Hong Kong 2002 report considers that five and a half years after the hand-over of Hong Kong to China, the "One Country, Two Systems" principle continued to be working reasonably well. The Central Government statements reiterating its adherence to this principle for Hong Kong throughout 2002 were welcomed.

 

However, the actual implementation of this principle has given rise to some debate and uncertainty, notably the introduction of a national security bill enacting Article 23 of the Basic Law. The EU issued two public statements (Note 1) in 2002 to express its concerns regarding this legislation, which is certainly the most challenging legislative initiative since the hand-over (the report was drafted before the recent events in the territory which led the Government to withdraw the bill in question).

 

The report points to the continuing sluggishness of Hong Kong's economy in 2002 and to the external and internal challenges with which the SAR has had to cope. It welcomes the increasing economic integration with China and expresses hope that the Closer Economic Partnership Arrangement with China will be WTO-compatible and will not imply discrimination against foreign companies.

 

In conclusion, the Commission calls on the Hong Kong government to continue to uphold the "one country, two systems" principle and to build on positive steps taken in the institutional field, by making early moves towards implementation of universal suffrage, as set out in the Basic Law.

 

The European Commission will continue to monitor developments in Hong Kong very closely, especially with regard to future legislative developments related to Article 23.

 

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View the full report, please see enclosed.

 

SAR Government has issued an response to European Commission Fifth Annual Report. For details, please see enclosed. (Link to HKSARG website)

 

Note 1:

1.        Declaration by the Presidency on behalf of the European Union on Article 23 of the Basic Law of Hong Kong (16/07/2003)

2.        Declaration by the Presidency on behalf of the European Union on Article 23 of the Basic Law of Hong Kong (30/06/03)

3.        Declaration by the Presidency on behalf of the European Union on Article 23 of Hong Kong Basic Law (15/04/03)

4.        EU Statement: Hong Kong SAR Government's Proposal to Implement Article 23 of Basic Law (23/12/02)