 and freedoms, including those of the person, of speech, of the press, of assembly, of association, of travel, of movement, of correspondence, Of strike, of choice of occupation, of academic research and of religious belief will be ensured by law .... Priv ate property, ownership of enterprises, legitimate right of inheritance and foreign investment will be protected by law."
\u239\'95 Hong Kong will remain a separate customs territory. It will remain an international financial center,, "and its markets for foreign exchange, gold, securities and futures will continue. There will be free flow of capital. The Hong Kong dollar will continue to circulate and remain freely convertible."
\u239\'95 The SAR will have independent finances and Beijing will not levy taxes on Hong Kong.
\u239\'95 "Mutually beneficial economic relations!' may be established with the United Kingdom "and other countries, whose economic interests in Hong Kong will be given due regard."
\u239\'95 Under the name "Hong Kong, China," the SAR "may on its own maintain and develop economic and cultural relations and conclude relevant agreements with states, regions and relevant international organizations."
\u239\'95 Hong Kong may issue its own travel documents and maintain its own public security forces.
\u239\'95 IlApart from displaying the national flag and national emblem of the People's Republic of China," Hong Kong "may use a regional flag and emblem of its own."
\u239\'95 "The Hong Kong Special Administrative Region shall maintain the educational system previously practised in Hong Kong."
The PRC promised in the Agreement that'the above policies would be enshrined in a "Basic Law of the Hong Kong Special Administrative Region of the People's Republic of China." The Basic Law will stipulate that after 1997 "the socialist system and socialist policies shall not be practised in the Hong Kong Special Administrative Region and that Hong Kong's previous capitalist system and life-style shall remain unchanged for 50 years."- 5 -
An ev aluation of the effect of the Hong Kong settlement on U.S.-PRC-ROC relations requires some sense of the wide range of reactions to the Agreement. British officials believe that China would have assumed sovereignty in 1997 with or without an agreement. The fact that the PRC was unwilling to extend the lease on the New Territories made the British position on Hong Kong Island, Kowloon, and Stonecutters Island untenable. Given that situation, the British feel the agreement they reached is in the interests of the people of Hong Kong. officially, London said:
Her Majesty's Government believe that the agreement is a good one. They strongly commend it to the people of Hong Kong and to Parliament ... Her Majesty's Government are confident that the agreement provide s the necessary assurances about Hong Kong's future to allow the territory to continue to flourish, and to maintain its unique role in the world as a major trading and financial centre.5
British officials involved in negotiating with the Chinese concluded that the PRC really intends for Hong Kong to be autonomous after 1997, but subject to the PRC Constitution and the Basic Law. The National People's Congress, of course, is the final arbiter of what that Law will mean.
For their part, the Chinese continue to be suspicious of anything that appears to challenge their sovereignty over Hong Kong. Gradually, however, this concern has become more of a bargaining ploy than an issue of substance. Beijing has let it be known that during the transition it wants to b e consulted frequently and early on major issues, especially political developments. Chinese State Councilor Ji Pengfei told a delegation from Hong Kong on December 20, 1985: "Though minor changes can be made, there should be no major changes in Hong Kong during the transition period. Major changes can be made only after consultations. V,6
Ji, who is also director of the Hong Kong and Macau Affairs office under the State Council, told the group that the Chinese government had not formed a fixed idea as to what political syst