CHIEF EXECUTIVE TUNG

July 23, 1999
		The raising tensions between China and Taiwan are causing concern throughout the region. After a background report, Elizabeth Farnsworth talks with Hong Kong Chief Executive Tung Chee Hwa about Taiwan and the former colony's implementation of the one-country, two-systems policy.

July 23, 1999: A report on the tensions between China and Taiwan. June 12, 1998: Anson Chan discusses Hong Kong's relationship with China. May 25, 1998: Martin Lee on Hong Kong's pro-democracy movement. Sept. 11, 1997: Pro-democracy activist Emily Lau criticizes Hong Kong's government. Sept. 10, 1997: A conversation with Hong Kong's chief executive. July 25, 1997: Hong Kong's housing crisis tests its relationship with China. July 21, 1997: Hundreds of Hong Kong's children try to stay in the city. July 3, 1997: Our correspondents in Hong Kong answer your questions about the handover and the territory's future. June 30, 1997: A panel discussion on the meaning of the Hong Kong handover. May 17, 1996: A discussion on U.S. - China relations March 26, 1996: Taiwan holds its first democratic elections. Browse the NewsHour's coverage of Asia.   U.S. State Department Government of Hong Kong Chinese consulate in New York	ELIZABETH FARNSWORTH: Tung Chee Hwa was born in Shanghai but left China in 1947, just before the Communists took over. He studied in England, worked in the United States and then helped manage his family's Hong Kong-based shipping business, one of the world's largest. He became chief executive of Hong Kong in 1996, after being elected by a committee of 400 people representing different sectors of the community and after being confirmed by Beijing. ELIZABETH FARNSWORTH: Thank you very much for being with us. TUNG CHEE HWA: Thank you. Good morning.
	China/Taiwan tensions
	ELIZABETH FARNSWORTH: Now, before we get to Hong Kong, I need to ask you about some of these items that have been in the news this week, first on Taiwan. TUNG CHEE HWA: Yes. ELIZABETH FARNSWORTH: How serious do you think this disagreement between Taiwan and China is? TUNG CHEE HWA: Well, I think the situation is serious. You know, the one-China principle was the very foundation of the informal discussion that was being conducted by the central government of China and Taiwan authorities. And this one-China principle was also very much accepted internationally by all the nations around the world and by Chinese people everywhere. So I think really it is important that this one-China principle should be sticked to in all the future discussions. ELIZABETH FARNSWORTH: When you say it's serious, how serious? TUNG CHEE HWA: Well, it is serious, and from Hong Kong's point of view, any de-stability in that region would obviously not be good for Hong Kong. ELIZABETH FARNSWORTH: It's already had an economic effect, hasn't it, on the stock market and other things? TUNG CHEE HWA: Yes. There are some temporary effects on the stock market already, not just in Hong Kong, in Taiwan also. ELIZABETH FARNSWORTH: You have close ties, I think, with both Taiwan and Beijing. Do you have a role to play in ironing this out? TUNG CHEE HWA: No, Elizabeth. My responsibility is Hong Kong and I am really very busy dealing with Hong Kong already, but I would hope that, you know, given the fact that one-country, two systems, which is now being implemented in Hong Kong, has been a success and continues to be a success, will be a good example for Taiwan to see that, you know, that things can be worked out.
	The ban on the Falun Gong
	ELIZABETH FARNSWORTH: Okay. Good. I want to get to that in one second. Before we do, what about the Falun Gong? Some people call it Buddhist law or wield of law group that's been outlawed and some people have been arrested. How serious do you think that could be? They say that there could be millions of members in China. There are some in Hong Kong. Now, I know this doesn't apply to Hong Kong. Your government has already said that it will not be banned in Hong Kong. But how serious do you think that could become? TUNG CHEE HWA: Well, you know, as far as Hong Kong is concerned, of course, we are working under one country, two systems. You know, and in Hong Kong we have our own set of laws, and so long as the societies or organizations, they function within the framework of law, they're perfectly all right. So if Falun Gong is working in Hong Kong within the framework of law, you know, we have our set of laws and we go by our way forward. Insofar as China is concerned, of course, I'm not very well versed with what is happening in detail, but I think it's important to recognize that China is moving forward very rapidly in its economic reform. It's going through many ambitious but very important reform programs for the country as a whole, the standard of living of the country has been improved enormously, and throughout all this social stability is very important for the country. ELIZABETH FARNSWORTH: And that's the main - their main concern - stability? TUNG CHEE HWA: That's right. That's right. ELIZABETH FARNSWORTH: Okay. Now, to the Hong Kong model for Taiwan, do you think it is a kind of model that could be applied -- I understand with some differences. I think China has already said, for example, that Taiwan could have its own military. But is it working? Is it an important model? TUNG CHEE HWA: Well, it is really working in Hong Kong and working very well. It's now been two years since the reunification of Hong Kong with China, and one-country, two-systems is no longer a slogan; it's no longer a concept; it is, in fact, a reality. We are working at it every day, you know, and I wish you come to Hong Kong to see for yourself how well it is working. And, you know, the one-country, two-systems concept is, in fact, institutionalized by a piece of legislation, which the National People's Congress in China passed in 1990, which is called the Basic Law, and then the basic law, you know, prescribes that Hong Kong will have a different social, economic, and political system from that of the mainland, and that, you know, our way of life will be the freedom we enjoy. We'll all be guaranteed the judiciary independence, which is so important to Hong Kong's success, will be guaranteed. The fact is that we have separate monetary authority to manage our own monetary affairs. And all this is now working in Hong Kong, and working very well.
	Hong Kong's relationship with the mainland
	ELIZABETH FARNSWORTH: Okay, now, let me put a couple of questions to you. As you know, there have been some incidents which have raised some questions among your critics, both inside Hong Kong and even in the U.S. government, about how well it's working on judiciary separation. There was a recent immigration case. The Chinese People's Congress in Beijing overruled your highest court. Explain that very briefly, because we don't have a lot of time, and you asked for this; you asked for the intervention of Beijing, which is what I think most upset, say, Martin Lee and other critics inside of Hong Kong; he's the head of the Democratic Party there. Why? Why did you ask for a ruling from Beijing on something your highest court had already ruled on involving who could immigrate into Hong Kong? TUNG CHEE HWA: Well, Elizabeth, you know, Hong Kong's population has been growing at about over 2 percent per annum, double than any other community or nation of the world, so we are already absorbing a lot of people into Hong Kong, and the Court of Final Appeals' ruling on January 29th would have permitted another 1.6 million people, a good 25 percent of people to come to Hong Kong, within a frame of 10 years. It is just like -- ELIZABETH FARNSWORTH: Although some people did dispute those figures. They were wrong? TUNG CHEE HWA: No. They were pretty well scientifically tested, and we were quite confident that they were the right figures, so we already have a population problem, and this is what comes on top of that. It's just like America suddenly in 10 years having another 65 million immigrants coming into America. Socially, from housing point of view, education point of view, it's not something we can handle. And, don't forget, Hong Kong has very limited resource on land. But let me say to you one thing, Elizabeth, that whatever we did, we did within the framework of law, because to me and to the Hong Kong government nothing is more important to us than the rule of law, you know. And I also want to tell you that in doing so we have enormous support from the people of Hong Kong that this needs to be done. ELIZABETH FARNSWORTH: So when critics like Martin Lee or even the U.S. Consul General at the time said that the U.S. concern was that this would become too easily a precedent, that Beijing could overrule what happened in Hong Kong. What's your response to that? TUNG CHEE HWA: Well, when we first approached Beijing, Beijing said to us, you know, under one-country, two systems, will you try to sort out your own problems, because we really don't want to get involved in the argument, but we can't handle the problem, and this is why we had to do it in Beijing. And, remember, the interpretation which the People's Congress Standing Committee rendered was to give us the original intent in the legislation. What was the original legislative intent? And they made a clarification of this, which was very helpful, and, in fact, the law which is now in the books is exactly the same, is what Britain and China agreed to in immigration before July 1, 1997.
	Caught between Beijing and Washington?
	ELIZABETH FARNSWORTH: Okay. And finally, how are you dealing with the fact that problems between the U.S. and China now become problems between the U.S. and Hong Kong? For example, because of the bombing of the embassy, China has decreed that no U.S. military ships would visit ports, and that includes Hong Kong, since China does have control over that sort of thing, and that takes money away from your coffers -- right? -- not to have the Navy come, and also this matter of the congressional committee, which has said that military-related technology is getting into -- secret technology -- to China via Hong Kong, so they -- there is some move in Congress to limit technology to Hong Kong? I mean, this is a whole problem for you, you wouldn't have had if you weren't part of China. TUNG CHEE HWA: Well, let me put it this way, that obviously U.S.-China relationships -- the ups and downs -- impact Hong Kong very much. China, of course, is our sovereign. The United States is our largest partner in trade, in commerce. Forty thousand Americans live in Hong Kong. I think good Sino relations, a good Sino-U.S. relationship is important to Hong Kong. It is important to China, but in my own view it is also very important to the United States of America. The United States of America is the superpower in the world; China, an emerging economic powerhouse, which will offer tremendous opportunity to American business, create more American jobs. So I think it is really important, not just for Hong Kong, for America, for China to work out the problems, because there is so much national interest involved. ELIZABETH FARNSWORTH: Well, Mr. Chief Executive, thank you very much for being with us. TUNG CHEE HWA: Thank you very much, Elizabeth.