THE SECRETARY'S OCTOBER 28 MEETING WITH HONG KONG

C O N F I D E N T I A L STATE 200834


E.O. 12958: DECL: 10/28/2030
TAGS: PREL ECON PGOV HK CH
SUBJECT: THE SECRETARY'S OCTOBER 28 MEETING WITH HONG KONG
CHIEF EXECUTIVE DONALD TSANG

Classified by EAP Acting Assistant Secretary Kathleen
Stephens, Reasons 1.4 (b) and (d).


1. (C) Summary: The Secretary and Hong Kong Chief
Executive Donald Tsang exchanged views on the importance
of democratic reform during their October 28 meeting. The
Secretary said that the United States understood that
Beijing placed constraints on Hong Kong but observed that
people come naturally to democracy. Democratic
governments do not take long to develop, she said,
particularly in a sophisticated society such as Hong Kong.
Tsang pointed out that universal suffrage is the Hong Kong
government's ultimate goal, to which he was personally
committed. But, he persisted; discussions about the means
toward that end would take time. End Summary.


2. (C) The Secretary discussed Hong Kong's democratic
reforms with Hong Kong Chief Executive Donald Tsang
October 28 during a 30 minute meeting.

Universal Suffrage
--------------

3. (C) Tsang gave a positive review of Hong Kong's
prospects, noting that the economy is expected to grow
5.5% in 2005 as a consequence of rapid development of the
China market and Hong Kong's success as a financial
center. He said Hong Kong's success also reflected the
success of "One Country, Two Systems," in that Hong Kong's
attributes -- the rule of law, clean government,
independent courts, freedom of information, etc. -- have
been preserved. Indeed, according to Tsang, the exercise
of personal freedoms is in many respects broader today
than before Hong Kong's reversion to Chinese sovereignty
in 1997. Tsang noted, however, that there were certain
limitations on Hong Kong's autonomy, such as in the areas
of foreign affairs and national defense. Hong Kong also
could not change its form of government without consulting
with Beijing. The Chief Executive briefed the Secretary
on his government's October 19 plan for expanding
democratic representation. He said that any plan to
change the form of government would need approval of the
Hong Kong Legislative Council by two-thirds majority vote,
the Chief Executive, and Beijing.

(C) The Secretary told Tsang that the United States had
understood that the 1997 reversion would bring
restrictions - such as on foreign affairs and national
defense. However, she said there is inherent tension
between the need to have Beijing's assent for democratic
reform and the desire of the people for freedom of
political expression and democracy. Tsang argued that
Hong Kong's democratic institutions were not well
developed and Hong Kong needed time to plan a course for
greater democracy. The Secretary emphasized that people
come naturally to democracy and that democratic
governments do not take long to develop, particularly in a
sophisticated society such as Hong Kong. She took the
example of Afghanistan, which is much behind Hong Kong in
terms of economic development but which has been able very
quickly to establish democracy because of the desire of
the people.

(C) The Secretary said that she recognized Tsang had
recently come into office, and she hoped Tsang would
advance the process on universal suffrage. Tsang said he
was consulting widely and starting a dialogue on broader
reform. He said that Hong Kong would find a solution for
itself: how to achieve the goal of universal suffrage and
how to deal with Beijing in that process. He reiterated,
however, that the broad consultations required to map out
a plan would take time. The Secretary pressed Tsang,
emphasizing that people come naturally to democracy, and
that she hoped Tsang would continue to work on this.

Bilateral Cooperation and Economic Issues
--------------

(C) Wrapping up the meeting the Secretary noted that Hong
Kong was to host a very important WTO Ministerial meeting
at the end of the year. Both she and Tsang agreed that we
need a successful conclusion to the Doha Agenda. Tsang
said that he hoped the U.S. proposal on agriculture would
bring positive results. Tsang added that Hong Kong was
making all appropriate security arrangements both inside
and outside the venues. Tsang observed that U.S. - Hong
Kong relations continued to be close, with cooperation on
the Container Security Initiative, avian influenza and
security cooperation a few examples of our close ties.
The Secretary thanked Hong Kong for close cooperation on
avian influenza in particular. In closing, Tsang briefed
the Secretary on a recent, precedent-setting internet
piracy conviction in Hong Kong ad said that Hong Kong was
in the forefront of working with China to improve China's
IPR protections.

(U) Participants:

U.S.

The Secretary
EAP Senior Advisor James Keith
US Consul General to Hong Kong James Cunningham
S- Steve Beecroft
PA - Sean McCormack
EAP/CM - Kaye Lee (notetaker)


Hong Kong

Chief Executive Donald Tsang
Information Services Yvonne Choi
HKETO Commissioner Jackie Willis
HKETO Deputy Margaret Fong
CE Private Secretary Jessie Ting
CE Media Assistant Donald Chen


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