USCC MEETING WITH DEMOCRATIC ALLIANCE FOR THE

C O N F I D E N T I A L HONG KONG 003067 SIPDIS NOFORN SIPDIS DEPARTMENT FOR EAP AND EAP/CM NSC FOR DENNIS WILDER E.O. 12958: DECL: 07/30/2031 TAGS: PGOV PREL PHUM PINR HK CH SUBJECT: USCC MEETING WITH DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG CLASSIFIED BY: E/P ACTING SECTION CHIEF JEFF ZAISER; REASONS 1.4 (B, D) ¶1. (C) SUMMARY: DURING A JUNE 26 MEETING WITH A VISITING DELEGATION FROM THE U.S.-CHINA ECONOMIC AND SECURITY REVIEW COMMISSION (USCC),THREE MEMBERS OF THE CENTRAL COMMITTEE AND STANDING COMMITTEE OF THE DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG (DAB) EXPLAINED WHY THEIR PARTY BELIEVED THAT THE PEOPLE OF HONG KONG ARE NOT READY FOR UNIVERSAL SUFFRAGE. THEY DESCRIBED THE CITY'S POLITICAL SYSTEM AS IMMATURE AND ITS RESIDENTS AS MORE CONCERNED WITH ECONOMIC AND LIVELIHOOD ISSUES THAN WITH POLITICS. THEY ALSO FELT THAT HONG KONG PEOPLE ALREADY ENJOYED MORE FREEDOM THAN RESIDENTS OF MANY DEMOCRATIC COUNTRIES, AND THAT UNIVERSAL SUFFRAGE WOULD LEAD POLITICIANS TO RAISE TAXES TO FUND ENHANCED SOCIAL WELFARE BENEFITS. WHILE NOTING THE NEED FOR REVISION OF HONG KONG'S BASIC LAW, THE DAB MEMBERS FEARED EFFORTS TO REVISE IT WOULD OPEN A "PANDORA'S BOX" OF ISSUES. END SUMMARY. ¶2. (C) ON JUNE 26, THREE MEMBERS OF THE CENTRAL COMMITTEE AND STANDING COMMITTEE OF THE DAB -- FELIX FONG, ANN CHIANG, AND ALBERT LAM -- DISCUSSED THEIR VIEWS ON UNIVERSAL SUFFRAGE AND DEMOCRATIZATION IN HONG KONG WITH THE VISITING DELEGATION FROM THE USCC. LAM, FORMERLY A CIVIL SERVANT WHO SERVED AS DIRECTOR GENERAL FOR CIVIL AVIATION UNTIL HIS RETIREMENT IN 2004, BRIEFED THE DELEGATION ON THE HISTORY AND POLICIES OF THE DAB. IT IS HONG KONGS LARGEST POLITICAL PARTY, WITH 6,500 MEMBERS AND CURRENTLY HOLDING TWELVE SEATS IN THE LEGISLATIVE COUNCIL (LEGCO). THE PARTY'S PLATFORM INCLUDES IMPROVEMENT OF THE PEOPLE'S LIVELIHOOD, IMPROVEMENT OF RELATIONS WITH THE MAINLAND, PROMOTION OF THE RULE OF LAW, PROTECTION OF FREEDOM OF EXPRESSION AND FREEDOM OF CHOICE, AND PROMOTION OF ECONOMIC DEVELOPMENT. THE USCC DELEGATION INCLUDED VICE CHAIRMAN CAROLYN BARTHOLOMEW; COMMISSIONERS PATRICK MULLOY, KERRI HOUSTON, AND DANIEL BLUMENTHAL; EXECUTIVE DIRECTOR T. SCOTT BUNTON; AND SENIOR RESEARCH ANALYST FOR ECONOMICS AND TRADE PAUL MAGNUSSON. HONG KONG NOT READY FOR UNIVERSAL SUFFRAGE -------------- ¶3. (C) ACCORDING TO FONG, THE DAB PREVIOUSLY HAD SUPPORTED ADOPTION OF UNIVERSAL SUFFRAGE, BUT DECIDED TO REMOVE THAT POSITION FROM ITS PARTY PLATFORM FOLLOWING THE 2004 DECISION BY THE CENTRAL GOVERNMENT THAT HONG KONG WAS NOT YET READY FOR ITS IMPLEMENTATION. FONG OBSERVED THAT MAINTENANCE OF THIS POSITION ACCORDINGLY HAD BECOME FUTILE AND INDEFENSIBLE. LAM INTERJECTED THAT HE BELIEVED UNIVERSAL SUFFRAGE EVENTUALLY WOULD BE IMPLEMENTED; THE QUESTION WAS ONE OF PACE AND PATH, AND AT PRESENT THERE WAS NO TIMETABLE. HE PERSONALLY BELIEVED THAT UNIVERSAL SUFFRAGE WAS GOOD, BUT NOTED THAT SOME DEMOCRATIC COUNTRIES, SUCH AS THE PHILIPPINES, WERE CHAOTIC, WITH LOW ECONOMIC GROWTH AND LITTLE PROGRESS. ¶4. (C) BOTH FONG AND CHIANG WENT ON TO DESCRIBE THE ALLEGED POLITICAL IMMATURITY OF HONG KONG'S POLITICAL SYSTEM AND PEOPLE. CHIANG SAID THAT PRIOR TO 1997, HONG KONG WAS "JUST A COMMERCIAL CITY," AND IT WAS ONLY AFTER REVERSION TO THE PRC THAT ITS LOCAL LEADERS BEGAN THINKING OF POLITICS. FONG DESCRIBED THE SPECIAL ADMINISTRATIVE REGION'S (SAR) FIRST CHIEF EXECUTIVE, TUNG CHEE HWA, AS A "DISASTER" WHO WAS UNABLE TO MANAGE THE RESPONSIBILITIES OF HIS POSITION. ¶5. (C) FONG AGREED THAT PUBLIC OPINION POLLS SHOWED THAT A MAJORITY OF THE HONG KONG PEOPLE WANTED UNIVERSAL SUFFRAGE. HE BELIEVED, HOWEVER, THAT THE PEOPLE OF HONG KONG ALREADY ENJOYED MORE FREEDOM THAN RESIDENTS OF MANY DEMOCRATIC COUNTRIES, BUT THEY ARE MORE CONCERNED ABOUT ECONOMIC, COMMERCIAL, AND LIVELIHOOD ISSUES. LAM OPINED THAT IMPLEMENTATION OF UNIVERSAL SUFFRAGE WOULD LEAD POLITICIANS TO RAISE TAXES TO FUND THE ENHANCED SOCIAL WELFARE BENEFITS THAT THE NEWLY ENFRANCHISED LOW INCOME CLASSES WOULD DEMAND IN EXCHANGE FOR THEIR VOTES. "HANDING OUT GOODIES" WOULD BE UNAVOIDABLE. NEVERTHELESS, FONG BELIEVED THAT HONG KONG ALREADY OFFERED "THE BEST SOCIAL WELFARE SYSTEM IN THE WORLD." BASIC LAW FLAWED -------------- ¶6. (C) FONG SAID THAT UNDER TUNG'S SUCCESSOR, CURRENT CHIEF EXECUTIVE DONALD TSANG, THE CENTRAL GOVERNMENT IN BEIJING HAS SOUGHT TO PLAY A MORE ACTIVE ROLE IN HONG KONG. THE "POORLY DRAFTED" BASIC LAW, HOWEVER, SOMETIMES REQUIRED INTERPRETATION ON ASPECTS OF HONG KONG'S RELATIONS WITH THE CENTRAL GOVERNMENT. WHILE THE HONG KONG COURT OF FINAL APPEAL IS SUPPOSED TO SERVE AS THE CHANNEL FOR THIS INTERPRETATION PROCESS, FONG ADMITTED THAT ON "SEVERAL OCCASIONS" -- SUCH AS THE RIGHT OF ABODE ISSUE -- BEIJING HAD "JUMPED THE GUN" AND PREMATURELY ISSUED INTERPRETATIONS OF THE BASIC LAW. ¶7. (C) BEFORE UNIVERSAL SUFFRAGE COULD BE IMPLEMENTED, FONG BELIEVED THAT A NUMBER OF ISSUES THAT WERE NOT CLEAR IN THE BASIC LAW NEEDED TO BE ADDRESSED "COMPREHENSIVELY," INCLUDING THE RELATIONSHIP BETWEEN THE CHIEF EXECUTIVE AND THE POLITICAL PARTIES, AND THE ROLE AND STATUS OF THE FUNCTIONAL CONSTITUENCIES IN LEGCO. AS A COLONY OF THE U.K., HONG KONG HAD BEEN GOVERNED THROUGH AN EXECUTIVE-LED RATHER THAN PARTY-BASED SYSTEM, WHICH THE PRC AND THE U.K. JOINTLY HAD DECIDED TO CONTINUE WITH THE BASIC LAW. IN THIS RESPECT, FONG JOKINGLY DESCRIBED THE BASIC LAW AS "HALF-BAKED" AND PROMULGATED WITH A "LET'S TRY IT" ATTITUDE. THE DAB'S CONCERNS IN THIS AREA, HE CLAIMED, WERE NOT "STALLING TACTICS." THAT SAID, HOWEVER, FONG ALSO NOTED THAT ANY PROPOSAL TO CHANGE THE BASIC LAW WOULD OPEN A "PANDORA'S BOX" OF ISSUES. ¶8. (SBU) THE USCC DELEGATION HAS CLEARED THIS CABLE. MULLINS