1. Taiwan ROC & Hong Kong Internal & External Politics

2. Taiwan ROC Government zPresident (4-year term after 1996) zThe Five ``Yuan”: yExecutive Yuan (Premier, ministers, etc.) yLegislative Yuan (3-year term) yJudicial Yuan (15 grand justices) yExamination Yuan and Control Yuan zNational Assembly (constitutional issues)

4. Diplomatic Tug of War z162 countries recognize PRC as the legitimate government of China y8 (’49) 32 (’59) 49 (’69) 113 (’79) 129 (’89) z27 countries recognize ROC as the legitimate government of China

5. US Official Policy zUS government shifted diplomatic recognition from ROC to PRC in 1979 zUS congress passed Taiwan Relations Act in 1979 zAmerican Institute in Taiwan zTaipei Economic and Cultural Representative Offices in US

6. Economic Ties zTrade and investment expanded rapidly despite restrictions by ROC government zWorkaround: Hong Kong & Macau z``Three links”: ymail ytransportation ytrade

8. President Chen Shui-bian zpledged in 2000 that, unless the CCP used military force against Taiwan, he would: ynot declare Taiwan independent ynot change the name of Republic of China ynot hold referendum on independence y… z2002: “separate countries” “referendum”

9. President Jiang Zemin: z``One-China principle is the basis for cross-straits relations z``Both the mainland and Taiwan belong to one China z``On the premise of the one-China principle, all issues can be discussed” zStress on cultural & economic exchanges

11. PRC-UK Negotiations zDeng Xiaoping: “1 country, 2 systems” zPRC Constitution of 1982: S.A.R. zPRC & UK Joint Declaration in 1984

12. Handover to PRC z7th National People’s Congress adopted Basic Law of HKSAR in Beijing in 1990 zBecame Hong Kong Special Administrative Region of PRC in July 1, 1997

13. Basic Law of H K SAR zStipulated in PRC-UK Joint Declaration in 1984 zDrafted by a committee with members from both Hong Kong and mainland zAdopted by 7th NPC in Beijing in 1990 zCame into effect on July 1, 1997 zConstitutional document for HKSAR

14. 3 Principles in Basic Law z``One Country, Two Systems” yCapitalist system and way of life shall remain unchanged for 50 years (B.L. A5) z``High Degree of Autonomy” z``Hong Kong People Running Hong Kong”

15. 1 Country, 2 Systems zLegal system (British common law) shall be maintained, except for any law that contravene the Basic Law and subject to amendment by the legislature (B.L. A8)

16. High Degree of Autonomy zHKSAR enjoys executive, legislative, and independent judicial power, including that of final adjudication (B.L. A2)

17. ``HK People Running HK” zexecutive authorities and legislature shall be composed of permanent residents of Hong Kong (B.L. A3) zpublic servants must be permanent residents of Hong Kong (some exceptions)

18. Central Government zresponsible for defense and foreign affairs relating to HKSAR (B.L. A13-14) zauthorizes HKSAR to conduct relevant external affairs on its own (B.L. A13) zHKSAR shall be responsible for the maintenance of public order z11 PRC laws apply to HK (B.L. A18)

19. Rights and Freedoms zfreedom of speech, of the press, of publication, of association, of assembly, of procession, of demonstration, of communication, of movement, of conscience, of religious belief, of marriage.. zthe right and freedom to form and join trade unions, and to strike

20. Three Branches zChief Executive yTung Chee Hwa zLegislative Council zCourt of Final Appeal

21. S/election of C.E. & Legco zShall be specified in the light of the actual situation in the HKSAR and in accordance with the principle of gradual and orderly progress (B.L. A45 & A68) zThe ultimate aim is the election of the Chief Executive and all the members of the Legislative Council by universal suffrage (B.L. A45 & A68)

22. S/election of Legco

23. Chief Executive S/election z800-member Election Committee yindustrial, commercial, and financial sectors 1/4 ythe professions 1/4 ylabor, social services, religious, & other 1/4 yLegco, HK deputies to NPC, etc. 1/4 zTung Chee Hwa (1997 - 2007) yno more than two consecutive terms

24. Since 1997 zFreedoms and rights substantially intact ydissident groups yFalun Gong zJudicial system remains the same zWeak executive and strong civil service zLack of political skills zMultiple political parties

25. H.K.’s Competitiveness zGeographic location yone of the best deep-water ports in the world zhardworking and well-educated workforce yliteracy rate 94%

26. ``World’s Freest Economy” zexports & imports each ~US$200b > GDP zGDP per capita: US$23,027 zno VAT, sales tax, or capital gains tax zonly 3 types of income are taxed: yprofits, salaries, and property z31% live in public housing

27. Influence on Mainland zUS$220 billion direct investment each way zHong Kong bodies of law and expertise zHong Kong attracts talents from mainland zHong Kong radios, TV, newspapers, magazines, and Internet on mainland