Prepared By Prof Alvin So1 SOSC 188 Lecture 29 The Chinese National Reunification (III): Hong Kong

Prepared By Prof Alvin So2 Colonial Rule and 1997 Decolonization Policies Developmental Crisis Legitimacy Crisis

Prepared By Prof Alvin So3 Colonial Rule and 1997 Colonial Hong Kong – cut off from China, orient towards the world rule through an expatriate-big businesspeople coalition, appointment system, consensus legislature The 1997 talks - the colonial govt & businesspeople wanted to keep the status quo, two years (83-84) heated negotiations, economic crisis, London backed off & gave HK to China Mainland tried to win support through the “one country, two systems” system back up by the Basic Law

Prepared By Prof Alvin So4 Decolonization Policies in the transition era ( ) Democratization - opened up the legislature for elections, the rise of middle class politics, Patten’s democratic reforms angered the mainland Infrastructure investment - state investment in airport & in higher education (HKUST) Nationality package - the right to abode in Britain Decolonization policies backfire - Mainland distrust, & increasing conflict in HK, massive migration Prediction: Economically optimistic, but political pessimistic

Prepared By Prof Alvin So5 Developmental Crisis after the 1997 transition The Asian Financial Crisis in 1997 lasted longer and deeper than expected Negative growth, unemployment rate of 7-8 % Tung government in search of new directions : (1) Reinvent HK as a high-tech center (Cyberport, Science Park) high-tech bubble burst in 2000; (2) Closer Economic integration with the PRD

Prepared By Prof Alvin So6 Legitimacy Crisis of the Tung government weak bases of social support: No direct election, Chief Executive elected by 800 Inconsistent policies on: Housing and high-tech projects? Deep Budget Cut on services (education, housing, welfare) & the state sector (size, salary,benefits) Negative labeling before a budget cut - Civil servant (lazy and over-paid), welfare recipient ( too lazy & get too much), teacher (lazy, poor quality) Finally, the event of Article 23 produced more social divisions and the protests on July 1, 2003

Prepared By Prof Alvin So7 Post July 1 reactions from the mainland CEPA (Closer Economic Partnership Integration) get the supports from the professionals & businessmen the economic absorption of politics Strengthen patriotic education TV message, student exchanges, celebrate the National Day, open army camp Win support through communication, interaction, and intimidation, but reject the direct election position Dump the Tung government