With the countdown to the 1997 handover of Hong Kong, the world waits with bated breath, and Taiwan's viewpoint and plan of action is a topic of concern to many. In mid-June, the ROC's Mainland Affairs Council (MAC) issued a formal statement expounding the ROC government's position and policies regarding post-1997 Hong Kong, which will serve as a guideline for future Taiwan-Hong Kong relations. Fundamentally, while the ROC is pleased that the ceded territories of Hong Kong and Kowloon are being returned to the Chinese people, it also believes that the question of whether or not Hong Kong will be able to maintain its economic prosperity under autocratic Chinese Communist rule will be a test for harmonious relations among Taiwan, Hong Kong and mainland China.

President Lee Teng-hui, during his inaugural-anniversary press conference on May 15, reiterated that relations between the ROC and mainland China after 1997 will continue to be handled in accordance with the principles of the National Reunification Guidelines. In regard to practical plans for post-1997 relations among Taiwan, Hong Kong and mainland China, the MAC pointed out in a formal statement on June 16 that Taiwan is already in the process of drafting the Regulations for Relations with Hong Kong and Macao, which will serve as a legal basis for future exchanges with Hong Kong in the areas of trade, banking, transportation, tourism, culture and education.

To strengthen the capabilities of ROC organizations in Hong Kong and improve links with the Hong Kong Special Administrative Region Government, Taiwan will establish a Hong Kong Affairs Bureau subordinate to the MAC. In the future, ROC representatives stationed in Hong Kong will not only expand the range of services available to Hong Kong citizens, but will also encourage cooperation between civic organizations in Taiwan and Hong Kong.

In regard to transportation, an agreement on air transportation was signed on June 13 of last year; in terms of marine transportation, the signing of a summary of negotiations on Taiwan-Hong Kong shipping marked a consensus on continuing shipping links. In regard to documentation for travel between Taiwan and Hong Kong, based on practical considerations, efforts will be made to continue using the current system.

On the question of how to view the mainland's Hong Kong policy of "one country, two systems," and whether this policy could be applied indiscriminately to Taiwan, the formal MAC statement above presents a detailed explanation. The MAC stresses its hope that Beijing will follow through on promises made in the Chinese-British Joint Declaration and the Hong Kong Basic Law regarding administration of Hong Kong by Hong Kong people, a high level of self-rule, etc., in the interests of continuing freedom and prosperity in Hong Kong. Furthermore, if Beijing fails in the implementation of its "one country, two systems" policy in Hong Kong, increased suspicions between mainland China and Taiwan will surely result. On the other hand, even if implementation of the "one country, two systems" policy in Hong Kong does achieve a certain degree of success, it will not necessarily facilitate the building of mutual trust across the Taiwan Straits. Finally, the structure for relations between Beijing and so-called "localities" as expounded in the "one country, two systems" policy is unacceptable to Taiwan. In sum, any attempt by mainland China to apply Hong Kong's "one country, two systems" model in handling cross-strait relations or the question of future Chinese reunification is absolutely unacceptable to the ROC government. The reason is that there is a vast difference between the reality of divided rule of mainland China and Taiwan on the one hand, and the colonial rule of Hong Kong on the other. The Hong Kong model is not only impracticable in Taiwan in objective terms, but is also contrary to the wishes of Taiwan's 21.5 million people.

Hong Kong will continue to be an important trading partner for Taiwan, and will play a vital role in cross-strait exchange. Peace and prosperity in Hong Kong is not only important to the well-being of Hong Kong people, but is also of influence to mainland China, cross-strait relations, the unification process, and the Asia-Pacific Region as a whole. Therefore, the MAC stresses in the above formal statement its hope that mainland China will adhere to the principles of pragmatism, sincerity and goodwill in its future handling of Taiwan-Hong Kong and cross-strait relations. It is only in this manner that Taiwan, Hong Kong and mainland China can work together to create a "three-way-win situation" in the post-1997 era.

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Work was completed on the Bank of China building in 1989. At 70 stories, it is taller than the Hong Kong Bank building, previously the tallest. On top of the building is a symbolic sword, pointed at the Hong Kong Bank; it was seen as representing Britain's waning power and China's ascension. (photo by Diago Chiu)