YEP Explores the dynamics of central–local interaction in modern China N Local autonomy is a complex and often contentious issue in E many countries, not least because the situation often involves GOTIATI a process of continuous (re)negotiation. Moreover, the actual NEGOTIATING power relationship is defined not only by legal permissibility but also by such other factors as varying political perceptions, AUTONOMY IN economic interests and previous encounters between the centre and periphery. This volume demonstrates that Hong Kong is a good illustration of the intricacies of the dynamic relationship N GREATER CHINA in a Chinese context. The territory has a long history of G pursuing its own path, both in colonial times and since 1997. A Hong Kong and its Sovereign With essays spanning both periods, the volume offers an UTO understanding of the mind-set and actions of both Beijing and Before and After 1997 Hong Kong in pursuing their goals. N In addition, by taking in the wider provincial situation in China and following developments since the establishment OM of the People’s Republic of China in 1949, the volume also Edited by Ray Yep provides a nuanced framework for evaluating central–local interaction in general. Y I Ray Yep is a Professor of Politics and Assistant Head of the N Department of Public and Social Administration, City University G of Hong Kong. R E AT E R CHI Governance in Asia series N A www.niaspress.dk Yep-cover.indd 1 10/06/2013 12:09 NEGOTIATING AUTONOMY IN GREATER CHINA Governance in Asia Series Editor: Tak-Wing Ngo, Professor of Political Science, University of Macau ([email protected]) Most Asian countries have experienced radical social transformation in the past decades. Some have undergone democratization yet are still plagued by problems of political instability, official malfeasance and weak admin- istration. Others have embraced market liberalization but are threatened by rampant rent seeking and business capture. Without exception, they all face the challenge of effective governance. This book series explores how Asian societies and markets are governed in the rapidly changing world and explores the problem of governance from an Asian perspective. It also encourages studies sensitive to the autochthony and hybridity of Asian history and development, which locate the issue of governance within specific meanings of rule and order, structures of political authority and mobilization of institutional resources distinctive to the Asian context. The series aims to publish timely and well-researched books that will have the cumulative effect of developing theories of governance pertinent to Asian realities. Also published in this series Politicized Society: The Long Shadow of Taiwan’s One-Party Legacy, by Mikael Mattlin NIAS Press is the autonomous publishing arm of NIAS – Nordic Institute of Asian Studies, a research institute located at the University of Copenhagen. NIAS is partially funded by the governments of Denmark, Finland, Iceland, Norway and Sweden via the Nordic Council of Ministers, and works to encourage and support Asian studies in the Nordic countries. In so doing, NIAS has been publishing books since 1969, with more than two hundred titles produced in the past few years. UNIVERSITY OF COPENHAGEN Nordic Council of Ministers NEGOTIATING AUTONOMY IN GREATER CHINA HONG KONG AND ITS SOVEREIGN BEFORE AND AFTER 1997 Edited by Ray Yep Nordic Institute of Asian Studies Governance in Asia series, no. 2 First published in 2013 by NIAS Press NIAS – Nordic Institute of Asian Studies Øster Farimagsgade 5, 1353 Copenhagen K, Denmark Tel: +45 3532 9501 • Fax: +45 3532 9549 E-mail: [email protected] • Online: www.niaspress.dk © NIAS – Nordic Institute of Asian Studies 2013 While copyright in the volume as a whole is vested in the Nordic Institute of Asian Studies, copyright in the individual chapters belongs to their authors. No chapter may be reproduced in whole or in part without the express permission of the publisher. A CIP catalogue record for this book is available from the British Library ISBN: 978-87-7694-119-2 (hbk) ISBN: 978-87-7694-120-8 (pbk) Typeset in Arno Pro 12/14.4 and Frutiger 11/13.2 Typesetting by NIAS Press Printed in in the United Kingdom by Marston Digital Cover illustration: Heated confrontation in Wanchai, Hong Kong, at the inauguration of Leung Chun Ying as Hong Kong’s new Chief Executive on 1 July 2012 (© Ding Yuin Shan). All efforts to contact the photographer have failed but we would be happy to hear from him on this matter. Contents Preface vii Contributors ix Part 1: Overview 1. Understanding the Autonomy of Hong Kong: Looking Beyond Formal Institutions 1 Ray Yep Part 2: Colonial Legacy 2. Loose Ties that Bound: British Empire, Colonial Autonomy and Hong Kong 29 Robert Bickers 3. Autonomy and the Origins of Hong Kong’s Low-cost Housing and Permanent Squatter Resettlement Programmes 55 Gavin Ure 4. Fiscal Freedom and the Making of Hong Kong’s Capitalist Society 81 Leo F. Goodstadt 5. Revisiting the Golden Era of MacLehose and the Dynamics of Social Reforms 110 Ray Yep and Tai-Lok Lui Part 3: Territorial Politics under Communist Rule 6. Central–Provincial Relations Amid Greater Centralization in China 145 Lam Tao-chiu 7. “One Country, Two Systems” and Its Antagonists in Tibet and Taiwan 179 Ho-fung Hung and Huei-ying Kuo 8. Macao’s “One Country, Two Systems”: High Autonomy or Intervention? 207 Eilo Yu Wing-yat 9. Negotiating Democracy and “High Autonomy”: The 2010 Political Reform 242 Ma Ngok 10. Judicial Autonomy in Hong Kong 269 Benny Tai Index 301 v NEGOTIATING AUTONOMY IN GREATER CHINA Figures 6.1. Provincial-level jurisdictions of the People’s Republic of China 144 6.2. The “two ratios” 1993–2001 158 6.3. Local share of budgetary revenues and expenditures 159 Tables 5.1. Estimated public expenditure 1978–1983 132 8.1. Composition of MSAR Legislative Assembly 213 8.2. Public attitudes toward the actualization of “One Country, Two Systems”, “Macao people ruling Macao” and “a high degree of autonomy” 224 8.3. Public confidence in the Central Government’s ability to maintain the prosperity and stability of the MSAR 225 8.4. Number of Mainland and Hong Kong travellers to Macao and their per capita spending in Macao, 1996–2006 227 vi Preface Since 1997, the people of Hong Kong have had bestowed upon them a unique experience of political transition. The process is distinct as it entails not only a change of regime or political system but also an over- haul in political allegiance, identity and, most importantly, a different order of political sovereignty. The People’s Republic of China decided to “resume” its exercise of sovereignty over Hong Kong on 1 July 1997 as, from its foundation in 1949, it had never recognized the legitimacy of British colonial rule in the territory. To a certain extent, the transi- tion has been facilitated by extensive socioeconomic linkages across the border since the early days of colonial rule. Yet adjustment to the life under a “new” sovereign remains a daunting task. Despite Beijing’s reiteration of its respect for a high degree of autonomy for the Hong Kong Special Administrative Region, the local people remain bemused with the intricacy of accommodating the concerns of the PRC’s central government after 1997. For the Hong Kong people, there is simply a fundamental change in the modus operandi concerning their interaction with the sovereign since the hand over. Central to China’s resumption of the exercise of sovereignty over Hong Kong is national dignity. In short, Beijing is highly motivated to prove that there is life after the British rule, even if this implies a strong presence in local affairs in Hong Kong and uneasiness by the local com- munity. Such a presence may come in many forms. Positively, the central government is prepared to show its almost unbridled support for the ter- ritory with a generous policy package and preferential treatment aimed at boosting the local economy via accelerated economic integration. Yet its jaundiced view of the local democratic movement as part of an “in- ternational conspiracy” against China has on the other hand reinforced its inclination to meddle in local politics. In contrast, London’s involve- ment in local affairs appeared to be remote, indirect or even bordered on indifference. Despite the colony’s contribution to the economy and vii NEGOTIATING AUTONOMY IN GREATER CHINA esteem of the United Kingdom, with the exception of incidents of crisis proportions, London’s involvement in the colony’s business appeared to be mostly reactive and limited in scope and remained relatively invisible in the eyes of the public over the 150 years of colonial administration. However, regardless of the interests and considerations of the old or new master, there has always been an urge to defend the interest of the local community. The strike for autonomy, either in negative or positive sense, is simply the defining feature of the relationship between Hong Kong and its sovereign. This book is a collective effort to help make sense of the negotiation over autonomy between Hong Kong and its sovereign. It aims to shed new light on the understanding of the contentious process by offering insights from scholars from the disciplines of political science, public administration, sociology, law and history. The intention of instilling a sense of diversity in the account is also reflected in the different personal experiences of the contributors. Among these scholars are expatriates who have served and lived in the colony for decades, local academics born in the territory and well versed with western ideas and liberal thoughts, overseas Chinese who has craved for an identity distinctive from the mainland regime and scholars who choose to work in place like Macao where the autonomy of the local administration has been castigated as nothing more than an illusion.