(Clearwisdom.net)

December 6, 2002

Mrs. Regina lp

Secretary of Security

Central Government Offices

Lower Albert Road

Hong Kong SAR

Dear Secretary Ip,

The American Chamber of Commerce is an organization of over 2200 members doing business in Hong Kong. As an organization which pay-, close attention to the business environment in Hong Kong, we have great concern about the proposals that have been put forth to implement Article 23 of the Basic Law, Our concerns relate to both the content and process of the proposals.

The Government of Hong Kong encourages foreign businesses to invest in Hong Kong, to establish operations, regional headquarters, and, crucially, to provide jobs. In doing so, the Government asks foreign businesses to place their trust in Hong Kong's political, economic and social systems. We commend the Government for the consultation process which has been started. However, it is of critical importance at this time that the Government of Hong Kong show its trust in the systems and people of Hong Kong by issuing a White Bill containing the complete text of the proposed Article 23 legislation as soon as possible.

Given the sweep of the Government's proposals for Article 23 legislation, the obligation to ensure the informed consent of Hong Kong society must be fully addressed. The vitality of Hong Kong as an international business center, where financial institutions locate their regional headquarters and where financial markets are a core feature, depends on the SAR remaining a free, open society within a transparently fair and predictable legal system. These are basic to Hong Kong's credibility and effectiveness as a business center with international standing.

Over the past decade, as Hong Kong's financial markets have grown, Hong Kong has become a service-based economy. Its competitiveness is increasingly dependent on a highly educated work force with a wide range of skills utilized in finance, investment, technology and other knowledge-based sectors. The free flow of information is essential for the continued development of higher education, for the advancement of technology and research sectors, and for the operation of Hong Kong's markets. Ultimately, access to the widest range of information and civic debate is essential for a competitive Hong Kong,

Many of the proposals contained in the Government's Consultation Document on Article 23 legislation fall short of meeting Hong Kong's requirements as an international business city and risk creating a chilling effect. In particular, we are concerned about the following:

The proposal is made to introduce a new offense of "unauthorized and damaging disclosure of protected information obtained by unauthorized access." This is not required by Article 23 and appears to prohibit disclosure of information which may be available through other sources or where there is a strong public interest in disclosure,

The terms "state secrets" and "protected information" have not been formulated in a way which allows a person to distinguish whether information received is a state secret or protected information. This could lead to self-censorship and a restriction of the flow of information necessary to Hong Kong's development.

The mere possession of materials which may be considered to contain protected information, state secrets or seditious content may be considered a crime. These proposals must be eliminated or severely restricted.

The proposals in the Consultation Document are often vague or overly broad. Phrases such as "threat of force" or "other serious unlawful means" should be avoided or defined to acts which pose a clear and present danger to the stability and security of the State.

The Consultation Document proposes that an organization in Hong Kong may be proscribed by the Hong Kong Government if it is found to be affiliated with a mainland organization which has been proscribed by PRC central authorities for reasons of national security. The Consultation Document does not define national security or explain how an affiliation between Hong Kong and mainland organizations will be determined. We urge the Government to develop stringent definitions which respect the principle of "one Country, two Systems,"

The Consultation Document also proposes that a decision to proscribe and declare an organization unlawful would be subject to an appeal procedure on two levels, with an "independent tribunal" to decide points of fact and a court of law to determine points of law. We are greatly concerned with such a proposal to limit the scope of Hong Kong's courts of law.

The crime of treason has been. expanded to include the act of intimidating the PRC government. Intimidation of a government cannot be well defined, and in any case, should not be actionable in the absence of real, measurable damage caused to the government.

In the offenses of treason, secession and subversion, the act of "levying war" is not defined. We hope that any definition will be confined to specifying organized, armed action, and not include a riot, disturbance or a prolonged assembly.

The Consultation Document states that "adequate and effective safeguards" should also be put in place to protect the freedoms of demonstration and assembly and other guaranteed rights. However, these safeguards are not stated in the Consultation Document. Such safeguards must be expressly provided for in the proposed legislation, especially safegus to ensure continued freedom of the press, including investigative reporting and editorial latitude.

There are proposals for new emergency powers, without adequate legal requirements for use and corresponding checks to avoid abuse of authority.

These are the issues of concern that we have currently identified, but it is difficult to comment more specifically until the full text of the proposed legislation is made public.

The Government's proposals for Article 23 legislation, while clearly the result of thoughtful effort, require further discussion within the community and especially the input of Hong Kong's many legal and political experts, We see it as imperative to issue a White Bill as soon as possible to allow more meaningful consultation needed to produce Article 23 legislation which will strengthen Hong Kong's competitiveness as an international business center.

We would be most pleased to discuss our concerns in greater detail and remain available to answer any questions you may have.

Yours sincerely,

James E. Thompson

Chairman

Source: http://www.amcham.org.hk/pr/issues/12-06-02-letter_to_ReginaIp.pdf

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