Prosecutions free from interference

The Department of Justice (DoJ) is responsible for making prosecutorial decisions. At times, these decisions attract extensive discussions in the community. It becomes interesting when overseas media and politicians embark upon allegations or purported demands relating to Hong Kong’s prosecutorial decisions.

 

Article 63 of the Basic Law provides that the DoJ of the Hong Kong Special Administrative Region shall control criminal prosecutions, free from any interference. This prosecutorial independence ought to be a feature in any society that cherishes the rule of law, and therefore attempts made by jurisdictions requesting such decisions to be made one way or another or even to request that they be varied is a blatant defiance of rule of law.

 

The DoJ acts independently without political, improper or undue influence, including those from public opinions and certainly not from overseas politicians who made these requests possibly not based on evidence or law but on political motives.

 

In cases in which legal proceedings are ongoing, we will not comment and neither should others as it may bring about the undesirable effect of a trial by the public. Statements made requesting the DoJ to drop all the charges or uttered with a view to affecting the DoJ’s role in controlling criminal prosecutions are futile. It is plainly wrong to label our prosecutions as politicised. On the contrary, no one, be they tycoons or politicians, will be above the law or be treated differently simply because they have a certain status or are pursuing certain beliefs or goals.

 

When law enforcement agencies have completed their investigation, they would seek legal advice from the DoJ. Our prosecutors would carefully consider the investigation reports and relevant materials submitted. A prosecution would only be commenced if the prosecutor is satisfied that there is sufficient admissible evidence to support a reasonable prospect of conviction.

 

The well-established procedures of our criminal justice system include the independent investigations by law enforcement agencies, the independent prosecutorial decisions based on objective assessment of evidence, applicable laws and in accordance with the Prosecution Code, and finally open trials by our independent judiciary. If we are to accede or be seen to yield to unreasonable demands to drop charges irresponsibly, we would not only be unfair and unprofessional but would also act in violation of the spirit of the rule of law.

 

I have explained the DoJ’s prosecution procedure on various occasions and stressed that our prosecutors are expected to apply the highest of professional standards in handling all criminal cases impartially and without fear or favour. They must not be influenced by political consideration. Cases should not be handled any differently irrespective of one’s own political beliefs or opinions.

 

The Hong Kong Special Administrative Region Government always respects and protects human rights and freedoms. However, these rights are not absolute. As pointed out by the Chief Justice of the Court of Final Appeal at the Ceremonial Opening of the Legal Year 2020: “It is important to understand that the enjoyment of these rights has limits so as not to affect adversely to an unacceptable level the enjoyment by other members of their community of their rights and liberties.” There are clear limits in the law to the exercise of these rights. When law is broken, action will be taken in accordance with the criminal justice system.

 

The rule of law is a core value in Hong Kong. We have to stand united in upholding our independent criminal justice system especially when it is under attack by any unfair and unfounded allegation made with a view to discrediting or undermining it. Any attempt to do so would only be attractive to those unfamiliar with our independent legal and judicial systems. We are obliged to continue to explain and ensure that their absence of knowledge would not override facts. We will continue to disseminate proper and accurate information and help clear any misunderstandings in the local and overseas communities.

 

Secretary for Justice Teresa Cheng wrote this article and posted it on her blog on April 26.

via Moroccan Trader Prosecutions free from interference

HK continues to fight COVID-19

During the third month of our fight against COVID-19, Hong Kong has experienced daunting challenges posed by the epidemic with no room to let down our guard.  Though we are a bit relieved to see a significant drop in the number of confirmed cases recently, the Government needs to remain alert given the volatility of the epidemic.

 

Developments of the epidemic

In the past month, the epidemic continued to spread rapidly in many countries around the world. The number of confirmed cases increased from 400,000 a month ago to 2.6 million today, an increase of some 600%, with over 180,000 deaths.  Many governments had little choice but to take extreme measures such as a city lockdown. During the same period, the overseas epidemic situation resulted in a large number of Hong Kong residents abroad, including students studying in the United States and Europe, particularly in the United Kingdom, to return to Hong Kong. Due to the large number of imported cases, Hong Kong’s epidemic situation, which had remained stable for a period up to mid-March, started to become severe and reached its peak at the end of March. On March 27, 28 and 29, Hong Kong recorded 65, 64 and 59 confirmed cases respectively on a single day. We were then extremely worried because if 60 new cases have to be admitted to hospital and placed in isolation each day (according to Hospital Authority statistics every confirmed case stays in hospital for 15 to 20 days on average) and if this number of new confirmed cases continued for one month then the Hospital Authority’s 1,200 or so isolation beds would be fully occupied and our hospital system would face unimaginable pressure.

 

Although deeply anxious, we did not lose our composure but continued to respond promptly to the developments of the epidemic taking account of expert advice. We bit the bullet and resolutely took stringent measures in response to the situation. The number of confirmed cases has dropped from the peak at end-March to single digits since April 12, with the great majority of cases being imported or their close contacts (See Graphic 1). This shows we have prevented local transmission and that Hong Kong, once again, has overcome the challenge.

 

Anti-epidemic efforts

Since the Government implemented stringent border control measures before end-March, including denying the entry to Hong Kong by plane of all non-Hong Kong residents arriving from overseas countries or regions from March 25, the anti-epidemic measures introduced over the past month focused on enhancing virus testing for inbound travellers and restricting social interactions to prevent the spread of the disease. However, we have not prohibited people from going out as many overseas countries have done. Most restaurants and shops have remained open.  People by and large can maintain their daily life.

 

Major measures implemented by the Government to respond to the developments of the epidemic in the past month are set out in the following table:  

 

Date

Event

March 25-26

Four chartered flights were sent over two days to bring back to Hong Kong the second batch of 558 Hong Kong residents stranded in Hubei Province.

March 25-26

The Centre for Health Protection (CHP) extended the Enhanced Laboratory Surveillance Programme and set up a temporary specimen collection centre at AsiaWorld-Expo to provide virus testing for asymptomatic inbound travellers arriving from the UK and other countries in Europe as well as the US.

March 27

The Government announced that catering premises must comply with six disease control requirements and six types of premises (ie amusement game centres, bathhouses, fitness centres, places of amusement, places of public entertainment and premises for hire for holding social gatherings) must close from 6pm on March 28; and gatherings of more than four people in a public place would be prohibited from midnight on March 29.  At the same time, the Chief Executive announced the preparation of the second round of the Anti-epidemic Fund to provide further assistance to individuals and businesses.

April 1-2

The Government announced that karaoke establishments, mahjong-tin kau establishments and nightclubs must be closed and beauty parlours, clubhouses and massage establishments must step up epidemic control measures from 6pm on April 1; and bars must close from 6pm on April 3.

April 5

Sixty-five Hong Kong residents who took the chartered flights arranged by the Hong Kong Special Administrative Region Government arrived in Hong Kong from Peru. Upon arrival, they were taken to the temporary specimen collection centre at AsiaWorld-Expo to undergo virus testing and were admitted to hospital or put under home quarantine subject to the test results.

April 8

The Government announced the closure of beauty parlours and massage establishments from midnight on April 10, and the extension of measures regulating catering businesses and scheduled premises as well as prohibiting group gatherings until April 23.

April 8

The Chief Executive announced the second round of the Anti-epidemic Fund and other related measures involving over $130 billion, including an $80 billion Employment Support Scheme. The Legislative Council Finance Committee approved the funding on April 18.

April 8

The Department of Health (DH) mandated all asymptomatic inbound travellers arriving at the Hong Kong International Airport to proceed to the temporary specimen collection centre to collect deep throat saliva samples according to instructions before undergoing compulsory quarantine at their place of accommodation. Besides, specimen collection containers will be provided to inbound travellers arriving via land boundary control points who have been to Hubei Province in the past 14 days.

April 9

The DH required all asymptomatic inbound travellers arriving on flights from the UK to stay and wait for the test results at the temporary specimen collection centre, and they can continue their quarantine at their place of accommodation only if the test result is negative. The arrangement was extended to asymptomatic inbound travellers arriving on flights from the US and other areas in Europe from April 13.

April 10

Twenty-seven Hong Kong residents who left Morocco on a chartered flight arranged by the Chinese Embassy in the Kingdom of Morocco arrived in Guangzhou. Apart from one Hong Kong resident who chose to stay in Guangzhou, all others returned to Hong Kong by prearranged coaches and were taken to AsiaWorld-Expo to undergo virus testing.

April 11

To ensure adequate quarantine facilities to cope with the development of the epidemic, the CHP will, where necessary, arrange for people under compulsory quarantine to stay at quarantine centres for the first 10 days and then continue quarantine at home for the remaining four days after virus testing.

April 19

The DH required all asymptomatic inbound travellers arriving on flights landing in the morning to stay and wait for the test results at the temporary specimen collection centre. They can continue quarantine at their place of accommodation only if the test result is negative.

April 19

With a declining number of inbound travellers, the Hospital Authority suspended the operation of the test centre at AsiaWorld-Expo from noon. Inbound travellers with symptoms will be admitted to public hospitals to undergo testing.

April 20

The DH started a trial to provide an extra specimen collection container to inbound travellers arriving at the Hong Kong International Airport for the submission of samples for another round of virus testing (on the 12th day) before the completion of home quarantine. The quarantine can be completed only if the test result is negative.

April 21

The Government announced the extension of all statutory measures to enhance social distancing for 14 days until May 7.

April 22

The DH required all asymptomatic inbound travellers arriving on flights landing in the afternoon or at night to stay and wait for virus test results at the holding centre in the Regal Oriental Hotel. They can continue quarantine at their place of accommodation only if the test result is negative. Upon implementation of the measure, all inbound travellers arriving at Hong Kong International Airport will be required to undergo testing and can return to the community only if the test result is negative.

 

The decision to extend various enhanced social distancing measures to early May is no doubt a further blow to the affected business sectors. The Government fully understands the disappointment and frustration of these sectors, but we dare not let down our guard as we look at the second or third wave of outbreaks around the world. In addressing the public health crisis, the Government also needs to consider the impact of the measures on the economy, livelihood and the daily lives of people.  I recall that Prof Gabriel Leung, one of the experts for the Government’s anti-epidemic work, once described the difficulty of the Government in making its decisions as a three-way tug of war (See Graphic 2).

 

We will continue to listen to the views of the experts and various sectors and constantly adjust the suppress and lift strategy according to the actual situation of the epidemic. The target is to achieve the optimal level of controls at all times.

 

Supporting individuals and businesses affected by the disease

The epidemic has lasted for more than three months and presents unprecedented challenges to our economy. Many businesses are facing pressure to close down or resort to massive staff layoffs, and many families and members of the public are facing severe hardship. According to the latest labour force statistics released by the Census & Statistics Department, the seasonally adjusted unemployment rate for January to March 2020 increased worryingly to 4.2%, the highest level in over nine years.

 

The Government will continue to make an all-out effort to keep our workers employed, relieve the financial burden of businesses and members of the public, and pave the way for post-epidemic economic recovery. The two rounds of the Anti-epidemic Fund and related relief measures, together with the relief package in the 2020-21 Budget announced by the Financial Secretary earlier on (yet to be approved by the LegCo), amount to $287.5 billion, representing 10% of gross domestic product. These measures are being implemented progressively to help businesses and members of the public tide over the difficult times.

 

Fighting the virus together

The hard-earned results of our anti-epidemic work over the past month are due to the togetherness of the community at large, the unswerving commitment of our healthcare professionals, the collaborative efforts of various government departments and the understanding of all sectors in society. I am confident that Hong Kong will come through the epidemic and the economic downturn. As long as we can hold on for some more time, we will soon see a bright tomorrow.

 

Chief Executive Carrie Lam issued this article entitled Three Months into Our Fight Seeing the Arrival of Dawn on April 25.

 

via Moroccan Trader HK continues to fight COVID-19

Employment support is vital

As we all know, Hong Kong as well as most parts of the world are facing a pandemic that has an enormous negative impact on our social and economic life. At this juncture, we don’t have any accurate way to predict what will happen in the coming months. Two months ago, we were worried about whether COVID-19 would become a pandemic. Yet, the scale of the pandemic as we see now is not what we could have imagined two months ago. What we can do now is tackle the social and economic crisis upfront and build the resilience of our society, in particular, our employment market, so that when the time comes where social and economic activities can resume no matter how gradually or rapidly, our society can bounce back as soon as possible.

 

Unemployment has edged up bit by bit since the latter part of 2019. Statistics and daily news about business closures are telling us that unemployment is going up rapidly. While we should see what can be done to help those unemployed, the more important and urgent task is to see how we can “stop the bleeding”, which essentially means job retention. The Employment Support Scheme, with a budget of over $80 billion, is designed exactly for that purpose. Through providing time-limited financial support, the whole idea of this scheme is to preserve jobs by enabling employers to keep their employees in employment for the coming months, and also when business resumes, employers can immediately grab the opportunities.

 

The central idea of the Employment Support Scheme is to provide wage subsidy that is equivalent to 50% of the wages of the employees up to a wage cap of $18,000 per month. The subsidy is given to the employers so that they can keep their staff for the coming six months. The employers will be required to have no redundancy or layoffs during the months that they receive wage subsidies from the Government.

 

In Hong Kong, we do not have a pay-as-you-go income tax system. Neither do we have a social insurance system nor a central provident fund to cover everyone in our workforce. That means we do not have any existing system covering every employer and employee in Hong Kong that we can devise a wage subsidy scheme that covers everyone. Any system meant to cover everyone in our workforce must be mandatory in nature and that will take time for us to have the relevant legislation in place and subsequently the system built.

 

However, schemes under the Mandatory Provident Fund (MPF) and the other Occupational Retirement Schemes provide a framework that we can develop a wage subsidy scheme to cover the great majority of the workforce. This is definitely not sufficient. In particular, we have identified three sectors that do not have good coverage in the provident fund systems. They are the catering industry, the construction industry and the passenger transport sector. Under the Anti-epidemic Fund, we have three sector-specific schemes to assist the employers and the employees in these sectors.

 

Many freelance workers or those in the so-called slash economy do not make contributions to the MPF. Though we have over 200,000 self-employed persons having an account in the MPF system, they do not pay MPF regularly. While we will provide a one-off wage subsidy to those self-employed persons who have made MPF contributions within the past 15 months, we also have three separate but mutually exclusive schemes operating under the Home Affairs Bureau, the Education Bureau and the Social Welfare Department, providing the same one-off wage subsidy to those freelance workers who provide arts and sports training. The one-off wage subsidy is $7,500.

 

Though all the schemes I mentioned above still cannot cover everyone in the workforce, this is the best we can do in making use of existing systems so that we can launch this round of the Anti-epidemic Fund in the shortest possible time to help our employers and employees to survive the challenges that are with us now. Any new systems to be built from scratch will not be able to provide the necessary timely support that employers and employees desperately need.

 

As mentioned earlier, unemployment is increasing at a disturbing rate. The basic unemployment protection system in Hong Kong relies on two legs. One is the Severance Payment or Long Service Payment payable by the employers, which is equivalent to two-thirds of the monthly salary times the number of years of service with the employer. The other is the Comprehensive Social Security Assistance (CSSA) Scheme. The CSSA provides a level of income support to families for their basic level of living in the context of Hong Kong. The CSSA provides a safety net to any family not having sufficient means, including those who are unemployed.

 

Apart from the income test, the CSSA also has an asset test. For the purpose of providing extra help to those unemployed during this difficult time, the Government will double the existing asset limit for the able-bodied for a limited period of six months, allowing more families with people unemployed to become eligible to receive CSSA. We estimated that about 40,000 families will benefit from this enhancement.

 

Unfortunately, over the years there is a social stigma towards the CSSA system. People in desperation may be deterred from applying for CSSA simply because of the stigma. This is the time for us to destigmatise the CSSA system. It is the safety net for citizens of Hong Kong. It is the responsibility of an affluent society like Hong Kong to provide the basic level of living to those who cannot afford to do so on their own. This is the time, this difficult time, that this safety net should perform its basic function.

 

We are doing our best to support Hong Kong in this epidemic fight. Let’s weather the storm and brave the challenges together.

 

This is the Letter to Hong Kong by Secretary for Labour & Welfare Dr Law Chi-kwong on anti-epidemic measures and the Employment Support Scheme carried on Radio Television Hong Kong Radio 3 on April 19.

via Moroccan Trader Employment support is vital

Banks to ease cashflow pressure

The banking sector today launched a scheme to alleviate the cashflow pressure faced by corporate customers in light of the economic challenges brought about by the COVID-19 outbreak.

 

Jointly announced by the Monetary Authority and the Banking Sector SME Lending Coordination Mechanism, the Pre-approved Principal Payment Holiday Scheme is estimated to cover more than 80% of all corporate borrowers in Hong Kong.

 

All corporate customers that have an annual sales turnover of $800 million or less and with no outstanding loan payments overdue for more than 30 days are eligible for the scheme.

 

Eligible customers’ loan principal payments due within a six-month period between May 1 and October 31 this year will be pre-approved for deferment.

 

The loans’ principal payments, including revolving facilities, will generally be deferred by six months, whereas trade facilities, given their short-term nature, will be deferred by three months.

 

The scheme does not cover syndicated loans or loans used for financing purchases of shares or other financial assets.

 

Banks will begin informing eligible customers of the pre-approval under the scheme as soon as practicable. Eligible customers do not need to apply. They only need to contact the bank within 14 days of the bank’s notice to confirm the detailed arrangements.

 

The authority has issued a circular requesting all banks to participate in the scheme and has received support from all 11 major lenders in the co-ordination mechanism.

 

It will monitor the scheme’s operation and maintain close dialogue with banks.

via Moroccan Trader Banks to ease cashflow pressure

Online dispute resolution effective

In view of the severe economic repercussions caused by the COVID-19 pandemic globally and locally, the Government announced another package of measures to support the affected individuals and businesses last Wednesday. Two of which are particularly relevant to the legal and dispute resolution sector – the LawTech Fund and the COVID-19 Online Dispute Resolution (ODR) Scheme. The LawTech Fund was briefly introduced in this blog a few days ago. Today, I would like to give an online explanation of the COVID-19 ODR.

 

In anticipation of an upsurge of disputes arising from or relating to COVID-19, the scheme aims to provide speedy and cost-effective means to resolve such disputes, especially for those involving micro, small and medium-sized enterprises (MSMEs) that may be adversely affected or hard hit by the pandemic. The scheme will engage eBRAM (electronic Business Related Arbitration & Mediation system) to provide ODR services to the general public and businesses, in particular MSMEs, involved in low value disputes.

 

The scheme plans to cover COVID-19 related disputes with the claim amount for each case to be capped at $500,000. Either one of the parties (claimant or respondent) must be a Hong Kong resident or company and they will only be required to each pay $200 registration fees. Under the scheme, the parties are required to enter into a dispute resolution agreement to record their consent.

 

The process to be adopted is a multi-tiered dispute resolution mechanism where the parties will first attempt to negotiate their disputes, followed by mediation and if that does not result in settlement, then subsequently to arbitration for a final and binding award. This is in line with the “Mediate First” policy that we have been advocating under our “Mediate First” Pledge Programmes.

 

The scheme aims to offer a fast and effective means to resolve disputes among parties. Each tier of dispute resolution will be conducted within a limited time. The tiers are devised with a view to avoiding disputes and differences from being entrenched. If the disputes can be resolved successfully and amicably through negotiation or mediation, we hope it will help build and reinforce a harmonious society and enable the parties to preserve their long term business relationship.

 

We also hope the scheme will have the benefit of job creation and job advancement for mediators and arbitrators (including their pupils). Parties are at liberty to appoint the third party neutral of their choice and if no agreement is reached, there will be a mechanism for appointment. The third party neutrals and the parties or their representatives can still handle cases under the social distancing measures online and indeed to practice on the handling of cases online. We would like the scheme to be launched in June if funding is provided in April.

 

It is a global trend to develop and use ODR to provide reliable and efficient platform to facilitate alternative dispute resolution. The scheme is in line with the development under Asia-Pacific Economic Cooperation’s Collaborative Framework on ODR (APEC Framework), with MSMEs as the major beneficiary. The mechanism of adopting negotiation and mediation in the first stage under the APEC Framework is also to prevent entrenched views on the conflicts, thereby helping to create harmony in society.

 

Some forms of alternative dispute resolution, such as mediation, are a more cost-effective way to resolve disputes. The costs of mediation are almost always lower than the disputed amounts, making it an economical way to resolve disputes. Mediation can save time too. Some cases may be resolved following just one day of mediation.

 

LawTech has greatly helped the development of dispute resolution services. The establishment of a safe, reliable and credible platform to provide enterprises with convenient and cost-effective online dispute resolution will become a new trend.

 

It is one of the major long-term policy objectives of the Department of Justice (DoJ) in recent years to enhance and promote Hong Kong’s status as an international legal hub for deal-making and dispute resolution. A further promotion of the use of ODR will help consolidate Hong Kong’s position as an international business and financial centre.

 

The social media accounts of the DoJ’s IDAR Office have been introducing the procedure, characteristics and benefits of mediation and arbitration. You may wish to visit the dedicated pages of the IDAR Office to keep abreast of the dispute resolution services.

 

In addition to the relief measures announced by the Government, the DoJ has also taken the initiative to speed up payment of fees to counsel. Counsel engaged by the DoJ could submit their interim fee notes together with the interim case reports after certain work has been completed. Each case will be considered individually on a case-by-case basis and interim payments could be made. I have enquired and am also glad to learn from the Legal Aid Department and the Duty Lawyer Service that they made similar arrangements.

 

We are confident that Hong Kong can weather the storm with our fundamental strengths and resilience. We also trust that we would overcome this unprecedented challenge by standing in solidarity.

 

Secretary for Justice Teresa Cheng wrote this article and posted it on her blog on April 13.

via Moroccan Trader Online dispute resolution effective

Tech enhances legal sector

The onset of COVID-19 has severely affected our economy and the legal sector was not spared. I have discussed with some of the representatives from the industry and we have carefully considered their suggestions with relevant government departments.

 

On Wednesday, the Government announced another package of measures to support individuals and businesses affected by COVID-19. Two of the measures are relevant to the legal sector: the establishment of LawTech Fund and the COVID-19 Online Dispute Resolution (ODR) Scheme. Today, I would like to share with you the arrangement of the LawTech Fund.

 

The Government always attaches great importance to LawTech. In her 2018 Policy Address, the Chief Executive supported the development of an online platform by non-government organisations to facilitate the provision of efficient and cost-effective online dispute resolution services in Hong Kong. The Government would allocate funding for the development of this project.

 

At the Ceremonial Opening of the Legal Year 2019, I emphasised the importance of making use of technology in providing legal services, citing the United Nations General Assembly in 2016 in observing that online dispute resolution “can assist the parties in resolving the dispute in a simple, fast, flexible, and secure manner, without the need for physical presence at a meeting or hearing”. The Asia-Pacific Economic Cooperation had responded to the call and embarked on a project to establish an ODR framework with micro, small and medium-sized enterprises as major beneficiaries.

 

Almost 18% of the annual caseload of the courts at all levels have been affected in the first two months of the General Adjourned Period since January 29. The Judiciary has earlier started using video-conferencing facilities for remote hearings on suitable civil cases at the High Court. The media reported the first hearing conducted through video-conferencing, quoting the legal representatives of both parties being supportive of the Judiciary’s new measures in view of the low cost and smooth operation.

 

Given the severe impact brought by COVID-19, the Judiciary has been exploring the use of various technological means in conducting different types of hearings to address the growing backlog of cases caused by the postponement of hearings. The legal sector should also take this opportunity to review the wider use of LawTech and enhance their technological capability. The Government introduced the LawTech Fund, which aims to assist some small and medium size law firms/barristers’ chambers in procuring and upgrading information technology systems (such as video-conferencing facilities) and attending LawTech training courses. This will be conducive to the promotion of use of technologies in the provision of legal services.

 

Under the scheme, law firms and chambers with not more than five practicing lawyers are eligible for application. Each firm/chamber will be eligible for a reimbursable amount of up to $50,000. Application for the fund will be jointly administered by the Law Society of Hong Kong and the Hong Kong Bar Association. The details will be announced soon and the fund will be opened for application next month.

 

Other measures announced by the Government include: Enhancement of SME Financing Guarantee Scheme, Employment Support Scheme under which the Government will provide wage subsidy to eligible employers to retain employees (details will be available soon), as well as the creation of some time-limited jobs by the Department of Justice.

 

Government measures alone, however, would not be adequate. We must all stand united in solidarity to fight the virus and support Hong Kong.

 

Secretary for Justice Teresa Cheng wrote this article and posted it on her blog on April 11.

via Moroccan Trader Tech enhances legal sector

Basic Law underpins HK’s success

On April 4, 1990, the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China was adopted by the Seventh National People’s Congress (NPC) of the People’s Republic of China (PRC). The Basic Law enshrines the basic policies of the PRC regarding the Hong Kong Special Administrative Region (HKSAR) and provides a solid constitutional basis for the implementation of “one country, two systems”. Looking back, we must not forget the purpose and mission of the Basic Law.

 

The Basic Law clearly states that Hong Kong has been part of the territory of China since ancient times and is an inalienable part of the PRC. It is a Special Administrative Region enjoying a high degree of autonomy under the Central People’s Government. Upholding national unity and territorial integrity, maintaining the prosperity and stability of Hong Kong, and taking account of history and realities, the “one country, two systems” principle was put forth by Mr Deng Xiaoping as a way to preserve the characteristics and strengths of Hong Kong as much as possible and to enable Hong Kong citizens to maintain their way of life.

 

In the 22 years since her return to the motherland, Hong Kong has weathered different challenges and, on the whole, the implementation of “one country, two systems” has been successful. Leveraging on our strengths in free market economy, rule of law, independent judiciary and the free flow of information and with our country’s strong support, Hong Kong has developed into an international financial, trade and transportation centre and attracted more than 9,000 overseas and Mainland companies to establish offices here, with many of them making Hong Kong as their regional headquarters in Asia-Pacific.

 

International financial centre

Article 109 of the Basic Law confirms Hong Kong’s status as an international financial centre and stipulates that the Government of the Hong Kong Special Administrative Region shall provide an appropriate economic and legal environment for the maintenance of such status. Specifically, under the Basic Law:

 

‧The Hong Kong dollar is the legal tender of the HKSAR and the linked exchange rate system has been maintained. With the strong support of the Central Government, Hong Kong has been able to maintain financial stability even during turbulent times. Riding on our country’s reform and opening up, Hong Kong has also developed into the world’s largest offshore renminbi centre.

 

 ‧The free flow of capital is protected and has attracted a large number of foreign direct investment and companies using Hong Kong as an ideal platform for initial public offerings and fundraising. Over the past 10 years, Hong Kong has topped the annual global IPO rankings six times.

 

‧Hong Kong maintains a simple and low tax system, which is key to Hong Kong’s success as an international financial, trading and business centre. The Hong Kong Special Administrative Region Government is free to implement tax measures according to policy needs under its independent tax system. Since I took office, I have put in place initiatives such as the two-tier profits tax system and tax deduction for research and development expenditure to enhance Hong Kong’s competitiveness.

 

Rule of law and independent judiciary

The Basic Law preserves and guarantees Hong Kong’s long-established and trusted common law system and allows the HKSAR to enjoy independent judicial power, including that of final adjudication. The rule of law and an independent judiciary, which are held dearly by Hong Kong people, are constitutionally protected. The Basic Law stipulates that judges shall be appointed by the Chief Executive on the recommendation of an independent commission; for the appointment of judges of the Court of Final Appeal (CFA) and the Chief Judge of the High Court, the Chief Executive shall obtain the endorsement of the Legislative Council and report such appointment to the Standing Committee of the NPC for the record. Last month, I accepted the recommendation of the Judicial Officers Recommendation Commission to appoint the Honourable Justice Andrew Cheung, Permanent Judge of the CFA, to succeed The Honourable Chief Justice Geoffrey Ma who will retire next year.

 

The Basic Law also allows the CFA to draw on the experience of judges from other common law jurisdictions. Currently, 15 eminent judges from the United Kingdom, Australia and Canada are sitting on the CFA as non-permanent judges. Their participation shows that our rule of law and independent judiciary are well recognised.

 

Rights and freedoms of residents

The fundamental rights and freedoms of Hong Kong residents are fully protected by the Basic Law. Under Chapter 3, Hong Kong residents shall have freedom of speech, of the press and of publication; freedom of association, of assembly, of procession and of demonstration; freedom of the person; freedom of communication; freedom of religious belief; freedom of choice of occupation; freedom to engage in academic research, literary and artistic creation, and other cultural activities; freedom of marriage and so forth. However, as pointed out by our courts in their judgments, freedom is not absolute; one should respect the rights and freedoms of other people and be subject to law when exercising such freedoms.

 

Developing external affairs

Hong Kong has always been a bridge between the East and the West. The Basic Law allows the HKSAR to maintain and develop relations with foreign states and regions and relevant international organisations in the appropriate fields, including economic, trade, financial and monetary, shipping, communications, tourism, cultural and sports fields on its own, using the name Hong Kong, China. The HKSAR has participated in the World Trade Organization, the World Meteorological Organization, the Asia-Pacific Economic Cooperation and many others in the name Hong Kong, China and has entered into hundreds of bilateral agreements with other countries, including Free Trade Agreements, Investment Promotion & Protection Agreements and Comprehensive Double Taxation Agreements. Hong Kong athletes can also represent Hong Kong in international competitions.

 

The implementation of “one country, two systems” fully demonstrates that it is the best institutional arrangement to maintain Hong Kong’s long-term prosperity and stability. As a pioneering initiative, its application entails an evolving process and we have to effectively and fully apply this principle in order to maintain the prosperity and stability of Hong Kong, to meet the aspirations of our citizens and to meet the fundamental interests of our country. I encourage all Hong Kong citizens to learn more about the Basic Law, including the institutional safeguards, and the rights and duties of Hong Kong residents. In so doing, we should consider how best we can continue to leverage on Hong Kong’s advantages, allowing Hong Kong to advance with the country and enabling every Hong Kong resident to realise their goal.

 

Chief Executive Carrie Lam wrote this op-ed entitled The Basic Law – Best Safeguard for the Prosperity & Stability of Hong Kong on April 4.

via Moroccan Trader Basic Law underpins HK’s success

Restrictions on bars gazetted

The Government issued directions in the Gazette today to close bars and premises selling liquor for 14 days from 6pm on April 3.

 

The Secretary for Food & Health issued the directions in accordance with the Prevention & Control of Disease (Requirements & Directions) (Business & Premises) Regulation.

 

The directions include the closure of bars and pubs, as well as any part of a catering business premise or a clubhouse mainly used for the sale or supply of intoxicating liquors for consumption.

 

The new measures were introduced due to the emergence of 62 confirmed COVID-19 cases related to the bar and band cluster with further spread to an additional 14 cases who had not visited bars.

 

The Government on April 1 introduced directions on the closure of karaoke, mahjong-tin kau and nightclub establishments as well as the suspension of karaoke and mahjong-tin kau activities in catering premises and clubhouses.

 

It has also been reviewing the feasibility of relevant measures and will make timely adjustments according to the latest developments of the disease.

via Moroccan Trader Restrictions on bars gazetted