China's election plan for HK a positive step: former Thatcher aide(2)

"ONE COUNTRY, TWO SYSTEMS" SERVES HK WELL

Powell noted that Hong Kong's autonomy and development under the "one country, two systems" exceeded his expectations three decades ago.

"In the run-up to the Joint Declaration, we were not certain what sort of arrangement we would succeed in negotiating for Hong Kong. I think we exceeded our expectations in what was achieved by the Joint Declaration, exceeded our expectations in maintaining Hong Kong's particular way of life, its free economy, its market system and its freedom of speech," he said.

He said the "one country, two systems" policy has worked extremely well for Hong Kong. "It has ensured that Hong Kong can continue with its particular way of life; there is freedom of debate in Hong Kong; there is freedom to demonstrate; there is an elected Legislative Council; there are lively debates there; Hong Kong's economy has remained a market economy; Hong Kong played its role in world trade negotiations, so it has very lively systems."

"I think China has managed generally speaking very well during the years since 1997. It has obviously taken charge of foreign affairs and defense of Hong Kong, but within that, Hong Kong has very far-reaching and extensive autonomy," he said.

Powell was also impressed by Hong Kong's development since the handover. "Hong Kong has also been able to grow rapidly. It is much more prosperous now than it was at the time of the handover in 1997."

"China is growing even faster. Hong Kong is now a smaller proportion of China's economy than it was in 1997 or in 1984. Nonetheless, both parts of China have prospered enormously under the systems. For me it has been an overwhelmingly positive experience."

Nevertheless, Powell noted, there are bound to be minor problems along the way. "Not everyone has done as well as others. There are discontent about housing, about education and about transport. There is some discontent about the number of people from the rest of China who are coming down to Hong Kong and taking places in the schools, medical systems and so on. "

"But goodness me, do you know a country or region where people don't have complaints?" he said.

"On the whole, people in Hong Kong should be pretty content with both the arrangements of the Basic Law, and also with the help which China has given them at times of economic difficulty in the years since the handover," he continued. "Overall, the Joint Declaration, the Basic Law and the 'one country, two systems' have served Hong Kong and its people very well."

HONG KONG WILL CONTINUE TO PROSPER

Powell also believed that, while other Chinese cities are growing rapidly, Hong Kong will continue to prosper and remain competitive.

"I don't for one moment believe Hong Kong is losing its competitiveness. Hong Kong is now a smaller proportion of China's overall economy simply because China is growing so fast. But Hong Kong is still the preeminent center in Asia for financial services, legal services, and for the sophisticated parts of the economy. I believe they will continue to be so," he explained.

He said Hong Kong's biggest strengths are its rule of law and freedom. "Hong Kong has an independent rule of law. The legal system is independent. It operates in a way in which the foreign companies and Hong Kong people have confidence. As long as no one interferes with Hong Kong's rule of law, I think it will continue to prosper."

"I am absolutely certain that Hong Kong would remain one of the world's preeminent centers for financial services particularly. Maybe manufacturing and shipping, other cities of China would overtake it -- overtake it but not to destroy it. It could continue to prosper," he said.