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developed provinces.35 In late 2008, after intense lobbying by Guangdong province, the National Development and Reform Commission of the central government approved “The Outline of the Plan for the Reform and Development of the Pearl River Delta (2008–2020),” in which Guangdong and Hong Kong are allowed even more policy support and flexibility to promote economic cooperation so that the south China region can once again become a champion of reform and development.36

The Hong Kong SAR government also requested the central authorities to highlight Hong Kong’s role in the national development plan in 2006. The National Eleventh Five Year Plan (the 11th FYP) stipulates that it supports the development of Hong Kong’s financial services, logistics, tourism, and information services, and Hong Kong’s status as a financial, shipping, and service center shall be maintained. Instead of reiterating the opportunities created by China’s rise as before, senior Hong Kong officials warned in March 2006 that in view of China’s rapid development, Hong Kong’s economy might actually be “marginalized” if it does not capitalize on the opportunities offered by China’s rise. A high-level Economic Summit was organized by the Hong Kong government in September 2006 and was attended by prominent businessmen, scholars, and officials in order to set out policy measures to complement the 11th FYP.37 In short, in contrast to the suspicion about closer social and economic integration with the Mainland often expressed in Hong Kong before 1997, the Hong Kong SAR government has been increasingly active in ensuring that the city has a role to play in the regional and national development plans of the Mainland.

13.4.4 External Dimension

Hong Kong’s extensive international connection is a key aspect of the OCTS framework. While diplomacy remains a central government prerogative, Beijing has not hampered Hong Kong’s conduct of external affairs since 1997 (Ren, 2007; Ting, 2007). The Hong Kong SAR can use the name, “Hong Kong, China,” to develop relations and conclude bilateral agreements on its own with foreign nations in areas such as economic affairs, trade, financial and monetary affairs, shipping, communications, tourism, culture and sports, and to participate in international organizations (IOs) and conferences not limited to states. Unlike local governments even in federal systems, Hong Kong participates as a member of China’s delegations or in such other capacity as permitted by the central government and the IO concerned (such as associate member) in 24 IOs limited to states as well as 32 intergovernmental organizations not limited to states.38 In particular, Hong Kong continues to be a member of important IOs limited to states, such as the International Monetary Fund, the World Bank, the International Maritime Organization, and the International Telecommunications Union, as well as other important IOs not limited to states, such as the Bank

35See the discussion paper for the Professional Services, Information Technology and Tourism Focus Group of the Economic Summit on “China 11th Five-Year Plan and the Development of Hong Kong,” http://www.info. gov.hk/info/econ_summit/eng/pdf/paper_9.pdf.

36See http://en.ndrc.gov.cn/.

37See the discussion paper for the plenary session of the Economic Summit on “China 11th Five-Year Plan and the Development of Hong Kong,” http://www.info.gov.hk/info/econ_summit/eng/pdf/paper_1.pdf.

38Hong Kong joined four of the former and nine of the latter after 1997. See the information provided by the Constitutional and Mainland Affairs Bureau of the Hong Kong SAR Government, for “Intergovernmental organisations limited to states,” http://www.cab.gov.hk/en/issues/external1.htm; “Intergovernmental organisations not limited to states,” http://www.cab.gov.hk/en/issues/external2.htm; “List of non-intergovernmental organizations,” http://www.cab.gov.hk/images/iorg_ngo.xls; “List of treaties in force and applicable to the Hong Kong Special Administrative Region,” http://www.legislation.gov.hk/interlaw.htm.

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for International Settlements, the Asian Development Bank, and the WTO. Hong Kong has also joined two major IOs limited to states after 1997—the World Tourism Organization and the World Health Organization.39 Since unification with the Mainland, the Hong Kong SAR government has concluded more than 10 agreements with foreign states and regions on its own, covering areas such as customs cooperation, cooperation in information technology, and avoidance of double taxation. With the authorization of the central government, Hong Kong has also concluded 86 bilateral agreements with foreign governments in areas such as air services, visa abolition, reciprocal juridical assistance, as well as investment promotion and protection.40 In 1997, there were 51 consulates general and 41 honorary consuls in Hong Kong, but both their numbers rose to 58 in 2008.41 Further, the central government has authorized the establishment of five offices of IOs restricted to sovereign states in Hong Kong, although these offices are usually located in the capital of a sovereign nation.42 In other words, Hong Kong’s involvement in the international arena continues to be strong and extensive.

Beijing has so far supported Hong Kong’s various international initiatives since 1997. For instance, the central government supported not only the hosting of major international events, such as the ministerial conference of the WTO in December 2005, the first time held in China, and the conference of the International Telecommunications Union in December 2006, the first time held outside Geneva, but also Hong Kong’s application to the International Olympic Committee to move the equestrian events in the Beijing 2008 Olympics to Hong Kong. Beijing also supported the election of Dr. Margaret Chan, the former Director of Health from Hong Kong, as the Director of the World Health Organization in November 2006, the first time that a Hong Kong and Chinese citizen was appointed as a senior official of such an important international body.

Major foreign governments are largely satisfied with the implementation of OCTS, but they are still concerned with the interpretations of the Basic Law by the central authorities, the issue of media self-censorship, and the slow progress toward democracy in Hong Kong. For instance, the foreign secretary of the UK indicated in 2007 that “over the past ten years there have been some bumpy moments politically and economically, and some of the more dire predictions have not come true,” and she called for universal suffrage to be introduced to Hong Kong as soon as possible.43 Like other western countries, the European Union is concerned with issues such as democracy, human rights, the level playing field for business, and the rule of law in Hong Kong. Despite the periodic hiccups in Sino-American relations in the past decade, Hong Kong has developed very good working relations with the US government.44 The central government has also accommodated

39http://www.cab.gov.hk/en/issues/external2.htm.

40http://www.yearbook.gov.hk/2005/en/01_07.htm.

41http://www.yearbook.gov.hk/2008/en/pdf/E01.pdf; http://www.protocol.gov.hk/eng/consular/index.html.

42These offices include the Office of the Commission of the European Union, the Of fcei of the Bank for International Settlement, the International Monetary Fund, the Regional Office for the International Finance Corporation for East Asia and Pacific, and the Private Sector Development Office for East Asia and Pacific for the World Bank. The information comes from the “List of Agreements and Arrangements for the Establishing of International Organisations in Hong Kong (Gazette References),” http://www.legislation.gov.hk/table7ti. htm.

43Speech by the Foreign Secretary the Right Honorable Margaret Beckett MP at the British Chamber of Commerce Lunch, Hong Kong, on May 21, 2007. See http://www.britainusa.com/sections/articles_show_nt1. asp?d=10&i=41059&L1=41059&L2=41059&a=46449.

44For instance, Hong Kong has been an active partner of the United States in law enforcement, including the protection of intellectual property rights, cross-boundary drug and human trafficking, money laundering, credit card fraud, and on the exchange of information on anti-terrorist operations. See http://hongkong.usconsulate. gov/ushk_state_2007043001.html; http://hongkong.usconsulate.gov/pas_pr_2003050501.html.

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