U.S.-CHINA COMMISSION VISIT TO HONG KONG: MEETINGS

C O N F I D E N T I A L SECTION 01 OF 03 HONG KONG 001689

SIPDIS

NOFORN
SIPDIS

DEPARTMENT FOR EAP, EAP/CM
NSC FOR DENNIS WILDER

E.O. 12958: DECL: 06/25/2032
TAGS: PGOV PREL PINR CH HK
SUBJECT: U.S.-CHINA COMMISSION VISIT TO HONG KONG: MEETINGS
WITH GOVERNMENT AND DAB


Classified By: Acting DPO Laurent Charbonnet; Reasons 1.4 (b, d)


1. (C) Summary: On April 30, a visiting delegation from the
U.S.-China Economic and Security Review Commission (USCC)
discussed Hong Kong political developments with Hong Kong
Chief Executive's Office Director John Tsang and Secretary
for Constitutional Affairs Stephen Lam. Lam, while noting
that on the "democratization front" the Hong Kong Special
Administrative Region Government (HKSARG) had "only been able
to make limited progress so far," claimed this was an
improvement over the pre-1997 situation. There were,
however, "some trappings" of democracy, and the HKSARG
planned to initiate a community-wide dialogue on universal
suffrage through issuance of a "green paper" in July. After
about three months of public comment, the HKSARG would see if
any "mainstream view" emerged and forward that plan to the
central government in Beijing. Lam said that Chief Executive
Donald Tsang wanted to resolve the universal suffrage issue
sometime during his current five-year (2007-12) term, and
that the 2012 CE election would include at least two
candidates chosen by a "broadly based nominating committee."
John Tsang noted the Basic Law's requirement for achievement
of a tripartite consensus among the CE, two-thirds of Legco,
and Beijing on any proposal for constitutional reform.


2. (C) In a separate meeting, Democratic Alliance for the
Betterment and Progress of Hong Kong (DAB) leaders Maria Tam
and Greg So provided their views on the political reform
process, in large part matching those of the HKSARG.
Regarding the need to reach consensus and gain approval of at
least sixty percent of the people of Hong Kong, Tam observed
that a referendum mechanism "won't work here" and "will not
happen" because "the source of power is from Beijing, not
from the people." Tam said the DAB at this time did not have
a formal position on universal suffrage. On the March 2007 CE
election, Tam opined that the process had gone well and the
two televised debates had demonstrated the strengths and
weaknesses of both candidates. Asked for the central
government's view on the political situation in Hong Kong,
Tam replied that Beijing was "happy" because there were fewer
protests under CE Tsang. End Summary.

HKSARG
--------------


3. (C) On April 30, Hong Kong Chief Executive's Office
Director John Tsang and Secretary for Constitutional Affairs
Stephen Lam discussed Hong Kong's political development with
a visiting delegation from the U.S.-China Economic and
Security Review Commission (USCC). Lam, listing some of Hong
Kong's economic advances since the 1997 reversion to the PRC,
also noted that on the "democratization front" the Hong Kong
Special Administrative Region Government (HKSARG) had "only
been able to make limited progress so far," although he
claimed this was an improvement over the pre-1997 situation.
Lam said the televised debates and publication of platforms
by both candidates in the March 2007 Chief Executive (CE)
election had made it possible for the Hong Kong people to
appreciate fully the "pluses and minuses" of each candidate;
while Hong Kong did not yet have full universal suffrage,
there were "some trappings" of democracy. To advance to the
next stage, Lam said CE Tsang had promised to initiate a
community-wide dialogue on universal suffrage by issuing a
"green paper," which he said would not include any
"government stance." After about three months of public
comment, the HKSARG would see if any "mainstream view"
emerged; if so, then it would forward that plan to the
central government in Beijing. Asked by USCC Chairman
Bartholomew to reconcile that approach with the report in
that morning's "South China Morning Post" (SCMP),according
to which Beijing had expressed concern about the idea of a
"green paper" and, more generally, about early introduction
of universal suffrage in Hong Kong, Lam replied that the SCMP
report was "not official and not confirmed." He added that
CE Tsang had promised to hold discussions, then publish the
green paper sometime after July 1, and then resolve the
universal suffrage issue sometime during his current
five-year (2007-12) term. Lam said that for the 2012 CE
election, there would be "at a minimum two candidates" chosen
by a "broadly based nominating committee" as required by the
Basic Law. In the end, Lam said "we will have universal
suffrage."


4. (C) In response to Chairman Bartholomew's concern that,
ten years after reversion, there still was no timetable for
implementation of universal suffrage, John Tsang noted the
Basic Law's requirement for achievement of a tripartite

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consensus among the CE, two-thirds of Legco, and Beijing (the
State Council's Hong Kong and Macau Affairs Office and the
National People's Congress Standing Committee (NPCSC) on any
proposal for constitutional reform. CE Tsang had offered a
constitutional reform package in late-2005, but Legco had
rejected it. Tsang said this issue was "very high on the
(CE's) agenda." Lam, noting USG support for democracy around
the world, said that "here in Hong Kong we need to find
democracy that suits Hong Kong," a process which he said the
government had started. For that purpose, in November 2005
the HKSARG had established the Commission for Strategic
Development (CSD) to consider options within the constraint
imposed by Beijing that the 2007 CE and 2008 Legco elections
were "too soon" for universal suffrage. The Government had
done so, producing the proposal for limited reform that Legco
rejected in December 2005.


5. (C) Chairman Bartholomew asked why CE Tsang sometimes
referred to the pan-democratic parties as "the opposition,"
when there was no actual "government party" in Hong Kong.
Lam noted that the pan-democrats, including "(Democratic
Party legislator) Martin Lee and his merry men," sometimes
supported the Government, for example on this year's budget
proposal. He said the Democratic Alliance for the Betterment
and Progress of Hong Kong (DAB),the Liberal Party, and The
Alliance supported the Government on most issues and hence
constituted an "informal coalition." Furthermore, the
Government was considering bringing in political appointees
to fill a limited number of sub-Cabinet-level positions; this
would further the development of Hong Kong's relatively small
political parties, which he said needed time and room to
grow.

DAB
---


6. (C) On April 30, the delegation met with newly elected DAB
Vice Chairman Greg So and his predecessor, NPC deputy and
Hong Kong Basic Law Committee member Maria Tam. Asked about
the status of democratization in Hong Kong, Tam said it was
part of a process begun during the 1980s, when the U.K.-PRC
Joint Declaration mandated selection of both the CE and the
Legco by "consultation or election." Tam said it was
necessary to consider Hong Kong's "actual situation" during
the implementation of this "package" delivered by the Basic
Law, and "they" currently were "trying to find out how to do
that." Hong Kong, with half of Legco elected directly
(geographical constituencies) and half indirectly (functional
constituencies),now was at the midpoint of this process. In
July, the CSD's "Green Paper" would compile the 40-odd
formulas for transition to democracy that had been proposed
by various groups in Hong Kong. Next, there would be a "huge
public debate," lasting up to one year, to attempt to reach
"some kind
of consensus" that at least sixty percent of the Hong Kong
people support; at that point, CE Tsang would transmit the
consensus proposal to Beijing for its approval. Asked
whether the HKSARG would conduct a referendum to assess
public support for that plan, Tam replied that the referendum
mechanism "won't work here" and "will not happen" because
"the source of power is from Beijing, not from the people."


7. (C) Tam also discussed DAB positions and her own views on
various Hong Kong political issues. Asked by Chairperson
Bartholomew about the DAB's position on universal suffrage,
Tam replied that the party currently was consulting with its
18 Hong Kong local branches and would announce its position
in June. She said that under current law, the CE could not
be a member of a political party, and therefore the CE had no
base of support in the Legco. The proposal to increase the
number of political appointees in the government was intended
to "build a ladder for new people to climb" and also set up a
"revolving door" mechanism. Elaborating, Vice Chairman So
said Hong Kong needed a system to groom young political
talent, in part due to the "high opportunity cost" of a
career in politics. He added that in the past the DAB had
"not had much success" recruiting students, but now was doing
better with younger people, although they still were "not so
motivated" to join a political party. Currently, the DAB had
about 1,000 members under the age of thirty (total membership
is nearly 10,000). Tam added that no single political party
in Hong Kong had "earned the esteem of the general
population," as most people were more interested in making
money.


8. (C) Asked about the March 2007 CE election, Tam said it
was "no surprise" that pan-democratic challenger Alan Leong

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had surpassed the 100-nomination threshold required to
contest the election. The two televised debates had "gone
well" and demonstrated the strengths and weaknesses of both
candidates, with Leong "scoring higher" in the first debate
and Tsang doing better in the second. Asked for the central
government's view on the political situation in Hong Kong,
Tam replied that Beijing was "happy" because there were fewer
protests under Tsang; it also had "gotten used to" the
occasional Falun Gong demonstrations.


9. (SBU) The USCC delegation cleared this cable.
Cunningham