Uneasy Partners: The Conflict Between Public Interest and Private Profit in Hong Kong

Notes

Notes INTRODUCTION 1. Gordon Redding, "Culture and Business in Hong Kong", in Wang Gangwu and Wong Siu-lun (eds), Dynamic Hong Kong: Business & Culture (Hong Kong: Centre of Asian Studies, 1997), p. 102. 2. W. F. Jenner, The Tyranny ofHistory. The Rnots of China's Crisis (London: Penguin Books, 1992), p. 191. 3. This unawareness of the past was widespread in Asia. Fran<;;ois Godement in The New Asian Renaissance. From Colonialism to the Post-Cold War (London: Routledge, 1997), pp. 274-5. 4. Lau Siu-kai, "Tung Chee-hwa's Governing Strategy: The Shortfall in Politics", in Lau Siu-kai (ed.), The First Tung Chee-hwa Administration. The First Five Years of the Hong Kong Special Administrative Region (Hong Kong: Chinese University Press, 2002),pp. 3-4,29-30. 5. Ronald Ma and Edward F. Szczepanik, The National Income ofHong Kong 1947-1950 (Hong Kong: Hong Kong University Press, 1955), p. 14. 6. Christopher Patten, Governor, Government Information Services (GIS hereafter), 19 November 1996. 7. Virtually all economists who discuss laissez faire and its application in Hong Kong have looked at practice rather than theory. One notable exception is the careful comparison between classical laissez faire and the Hong Kong version made by A. J. Youngson in Hong Kong: Economic Growth and Policy (Hong Kong: Oxford University Press, 1982), pp. 115-36. He concluded that the colonial administration was not true to the classical tradition. 8. George Hicks, "The Four Little Dragons: An Enthusiast's Reading Guide", AsianPacific Economic Literature, Vol. 3, No.2 (September 1989), pp. 36-7. 9. See "Report of the Hong Kong Industrial Bank Committee" (Hong Kong Government, July 1960, mimeo), p. 12. 10. A. G. Clarke, Financial Secretary, Hong Kong Hansard, 2 April 1958, p. 142. 11. As propounded, for example, in World Bank, The East Asian Miracle. Economic Growth and Public Policy (New York: Oxford University Press, 1993). 12. Eric Zitzewitz, Domestic Competition, Cyclical Fluctuations, and Long-Run Growth in Hong Kong SAR (Washington: International Monetary Fund, 2000), p. 28. 238 Notes to Pages 5-7 13. Pun-Lee Lam, Competition in Energy (Hong Kong: City University of Hong Kong Press, 1997), pp. 86-90; Leonard K. Cheng and Yue-Chim Richard Wong, Port Facilities and Container Handling Services (Hong Kong: City University of Hong Kong Press, 1997); How Competitive is the Private Residential Property Market? (Hong Kong: Consumer Council, 1996); Are Hong Kong Depositors Fairly Treated? (Hong Kong: Consumer Council, 1994). 14. Trade and Industry Bureau, Government Response to Consumer Council's Report Entitled "Competition Policy: The Key to Hong Kong's Future Economic Success" (November 1997) and Economic Services Bureau, Legislative Council Panel on Economic Services. Development and Competitiveness of the Hong Kong Container Port (November 1998). 15. Communications and Technology Branch, Public Consultation Paper on 2004 Digital 21 Strategy (Hong Kong: CITB, 2003), pp. 1-4; OFTA, Report on the Effectiveness of Competition in Hong Kong's Telecommunications Market: An International Comparison June 2003 (Hong Kong: Spectrum Strategy Consultants, 2003). 16. Notably, the Consumer Council's Competition Policy: The Key to Hong Kong's Future Economic Success (Hong Kong: Consumer Council, 1996). The IMF endorsement of the Consumer Council's approach was carried in GIS, 4 December 1997. 17. M. Castells et a!., The Shek Kip Mei Syndrome. Economic Development and Public Housing in Hong Kong and Singapore (London: Pion Limited, 1990), pp. 87-95. 18. Keith Hopkins, "Public and Private Housing in Hong Kong", in D.]. Dwyer (ed.), The City as a Centre of Change in Asia (Hong Kong: Hong Kong University Press, 1972), pp. 200-2; E. G. Pryor, Housing in Hong Kong (Hong Kong: Oxford University Press, 1973), pp. 24-8. 19. Hong Kong Annual Report 1953 (Hong Kong: Government Printer, n.d.), p. 48; Roger Bristow, Hong Kong's New Towns. A Selective Review (Hong Kong: Oxford University Press, 1989), pp. 40, 50. 20. Hong Kong Government, A Problem of People (Hong Kong: Government Printer, n.d.), pp. 15-7. 21. Margery Perham, Lugard: The Years ofAuthority 1898-1945 (London: Collins, 1960), p.312. 22. Notably, David Faure, "In Britain's Footsteps: The Colonial Heritage", in David Faure (ed.), Hong Kong: A Reader in Social History (Hong Kong: Oxford University Press, 2003), pp. 660-1, and David Faure, Colonialism and the Hong Kong Mentality (Hong Kong: Centre for Asian Studies, 2003), pp. 28-9, 31-2. 23. The Coordinating Committee minutes in Hong Kong Public Records Office HKRS163-1-1677 "Committees - Shek Kip Mei Fire" contain no suggestion of enthusiasm for starting a public housing programme. 24. The Governor himself insisted in a report to London: "The victims of this fire are not Hong Kong people." A meeting convened by the Colonial Secretary accepted that some 200,000 squatters needed to be resettled but laid down that "Government's part in the operations required to carry out the resettlement policy should not be extended to the provision of houses" (except for the fire victims) . Hong Kong Public Records Office HKRS163-1-1578 "Shek Kip Mei Fire", (21) Governor to Secretary of State, 29 December 1953 and (46) minutes of a meeting on 13 January 1954. Grantham offered no hint when he briefed the Legislative Council on the tragedy that re-housing would be offered to any wider group than the fire victims. Hong Kong Hansard, 30 December 1953, pp. 354-5. 25. As Grantham specifically admitted. Hong Kong Hansard, 2 March 1955, p. 39. Notes to Pages 7-11 239 26. Review of Policies for Squatter Control, Resettlement and Government Low-Cost Housing 1964 (Hong Kong: Government Printer, 1964), pp. 6, 10, 11. 27. Victor C. W. Wong, The Political Economy ofHealth Care Development and Reforms in Hong Kong (Aldershot: Ashgate, 1999), pp. 87-8. 28. Aims and Policy for Social Welfare in Hong Kong (Hong Kong: Government Printer, 1964), pp. 9, 11-12. The version of this policy document presented to the legislature in the following year toned down this offensive restriction. Aims and Policy for Social Welfare in Hong Kong Revised (Hong Kong: Government Printer, 1965), p. 11. Daphne Ho and her rehabilitation team in the Social Welfare Department ignored these restrictions on their work. 29. Such views were articulated without apology by SirJohn Cowperthwaite, Financial Secretary, Hong Kong Hansard, 28 February 1962, p. 57; 25 February 1970, pp. 3689 ; 24 February 1971, p. 419. 30. A Policy Paper on Securities and Futures Markets Reform (Hong Kong: HKSARG, 1999), pp.16-9. 31. Fanny Law, Secretary for Education and Manpower, GIS, 9 November 2001. 32. The basis for these estimates is presented in the Statistical Appendix. 33. Lau Siu-kai, Society and Politics in Hong Kong (Hong Kong: Chinese University Press, 1982), p. 165. 34. Pre-war legal discrimination and post-war attitudes are surveyed by Peter WesleySmith , "Anti-Chinese Legislation in Hong Kong", in Ming K. Chan (ed.), Precarious Balance. Hong Kong Between China and Britain, 1842-1992 (Hong Kong: Hong Kong University Press, 1994). For gubernatorial complacency, see Alexander Grantham, Via Ports. From Hong Kong to Hong Kong (Hong Kong: Hong Kong University Press, 1965), p. 104. For an official's denial of the British record, see D.]. Dwyer (ed.), Asian Urbanization. A Hong Kong Casebook (Hong Kong: Hong Kong University Press, 1971), p. 187. 35. James Hayes, The Rural Communities ofHong Kong. Studies and Themes (Hong Kong: Oxford University Press, 1983), p. 133. 36. James Pope-Hennessy, Hal:fCmwn Colony. A Hong Kong Notebook (London:Jonathan Cape, 1969), p. 92. 37. A Study Group of the Royal Institute of International Affairs, Political and Strategic Interests ofthe United Kingdom. An Outline (London: Oxford University Press, 1939), p.218. 38. Andrew Whitfield, Hong Kong, Empire and the Anglo-American Alliance at War, 19411945 (Basingstoke: Palgrave, 2001), pp. 21-3. 39. As one Governor, Sir Robert Black, forcibly explained to London in 1959. Faure, Colonialism and the Hong Kong Mentality, pp. 181-5. 40. See, for example, Perham, Lugard, p. 303. 41. e.g., S. N. G Davies, "One Brand of Politics Rekindled", Hong Kong Law Journal, Vol. 7, No.1 (1977); Ian Scott, Political Change and the Crisis ofLegitimacy in Hong Kong (London: Hurst & Co., 1989), Chapter 1; Lau, Society and Politics in Hong Kong, pp. 124-7. An important comment on the concept's use by Hong Kong academics is provided by Faure, Colonialism and the Hong Kong Mentality, pp. 12-6. Alvin So also reviews the concept in "The Tiananmen Incident, Patten's Electoral Reforms, and the Roots of Contested Democracy in Hong Kong", in Ming K. Chan (ed.), The Challenge of Hong Kong's Reintegration with China (Hong Kong: Hong Kong University Press, 1997), pp. 50, 77-8. An excellent historical background is 240 Notes to Pages 11-13 provided by Carl T. Smith, "The English-Educated Chinese Elite in NineteenthCentury Hong Kong", in David Faure (ed.), Hong Kong: A Reader in Social History (Hong Kong: Oxford University Press, 2003). 42. See Leo F. Goodstadt, "China and the Selection of Hong Kong's Post-Colonial Political Elite", China Quarterly, No. 163, (September 2000). 43. On the early cooperation between the government and the non-governmental agencies, see CatherineJones, Promoting Prosperity. The Hong Kong Way ofSocial Policy (Hong Kong: Chinese University Press, 1990), pp. 163-72. The pioneering contribution ofvoluntary agencies was acknowledged officially in Hong Kong. Report for the Year 1964 (Hong Kong: Government Printer, 1965), p. 141. 44. Lau Siu-kai, Decolonization Without Independence and the Poverty ofPolitical Leaders in Hong Kong (Hong Kong: Hong Kong Institute of Asia-Pacific Studies, 1990), pp. 10-11. 45. As late as 1957, the Colonial Office was arguing that Fiji should accept large numbers of Hong Kong refugees, a proposal that the British Prime Minister felt obliged to squash. Sir Anthony Eden, Full Circle (London: Cassell, 1960), pp. 3823 . 46. The discussion here draws heavily on Lau Siu-kai and Kuan Hsin-chi, The Ethos of the Hong Kong Chinese (Hong Kong: Chinese University Press, 1988), pp. 18-33. 47. Michael Yahuda, Hong Kong. China's Challenge (London: Routledge, 1996), p. 73; Lau Siu-kai, "Public Attitudes towards the Old and New Regimes", in Lau Siu-kai et al. (eds), Indicators of Social Development: Hong Kong 1997 (Hong Kong: Hong Kong Institute of Asia-Pacific Studies, 1999), p. 172. 48. A sense of the "whiteman's burden" was evident in the pre-war period (e.g., in discussing social legislation in Report of the Commission ... to Enquire into the Causes and Effects ofthe Present Trade Recession ... (Hong Kong: Noronha & Co., 1935), p. 96. Outright moral commitment was voiced by the Governor, Sir Geoffry Northcote and the Director of Medical Services, Dr P. S. (later Sir Selwyn) Selwyn-Clarke in discussing the social services, Hong Kong Hansard, 16 November 1939, pp. 219, 229. A rare post-war instance was the rejection on grounds of social equity of a sales tax by the Financial Secretary, C. G. S. Follows, Hong Kong Hansard, 1 May 1947, p. 151. The one significant instance of "moral obligation" being cited publicly thereafter to justifY a government policy appears to have been the imposition of rent controls in 1962. Proposal for Rent Increase Controls and Security of Tenure for Certain Classes ofDomestic Premises in Hong Kong (Hong Kong; Government Printer, 1962), pp. 14,21. But note Christopher Patten's link between political reform and moral obligation. Hong Kong Hansard, 6 October 1993, p. 57. 49. Steve Tsang, A Modern History ofHong Kong (Hong Kong: Hong Kong University Press, 2004), pp. 54-5. 50. The Government felt obliged to respond to this change of attitude. J. C. Griffiths, Attorney General, Hong Kong Hansard, 23 July 1980, pp. 1064-5. 51. For the first time, according to M. D. Thomas, Attorney General, Hong Kong Hansard, 10 November 1983, p. 221. 52. Lau and Kuan, The Ethos ofthe Hong Kong Chinese, Chapter 4; Kuan Hsin-chi et al., "Legal Attitudes", in Lau Siu-kai et al. (eds), Indicators of Social Development: Hong Kong 1988 (Hong Kong: Hong Kong Institute of Asia-Pacific Studies, 1991); Kuan Hsin-chi, "Legal Culture: The Challenge of Modernization", in Lau Siu-kai et al. (eds), Indicators of Social Development: Hong Kong 1990 (Hong Kong: Hong Kong Notes to Pages 13-17 241 Institute of Asia-Pacific Studies, 1992); Berry Hsu, The Common Law In Chinese Context (Hong Kong: Hong University Press, 1992), Chapters 6 and 7. 53. See, for example, Lau, Society and Politics in Hong Kong, p. 99; Lau and Kuan, The Ethos of the Hong Kong Chinese, pp. 64, 91, 116; Thomas W. P. Wong, "Economic Culture and Distributive Justice", in Lau Siu-kai et al. (eds), Indicators of Social Development: Hong Kong 1993 (Hong Kong: Hong Kong Institute of Asia-Pacific Studies, 1995), pp. 378-9. 54. S.J. Coombes, "The Coombes Report on Illegal Immigration in Hong Kong" (June 1959, mimeo), p. 1, presented to the Executive Council 15 December 1959, Hong Kong Public Records Office HKRS163-1-2052. 55. On the limitations of this approach, see Paul Hutchcroft, "The Politics of Privilege: Assessing the Impact of Rents, Corruption, and Clientelism on Third World Development", in Paul Heywood (ed.), Political Corruption (Oxford: Blackwell Publishers, 1997), pp. 224-30. 56. John Darwin, Britain and Decolonisation. The Retreatfrom Empire in the Post-War World (London: Macmillan, 1988), p. 55; Robert A Bickers, "The Colony's Shifting Position in the British Informal Empire in China", in Judith M. Brown and Rosemary Foot (eds), Hong Kong's Transitions, 1842-1997 (London: Macmillan Press Ltd, 1997), pp. 41-54. 57. Frances Wood, No Dogs and Not Many Chinese. Treaty Port Life in China 1843-1943 (London: John Murray, 1998), p. 2; Robert Blake, Jardine Matheson. Traders of the Far East (London: Weidenfeld & Nicoloson, 1999), pp. 124-5,219,221-4. 58. Aron Shai, The Fate of British and French Firms in China, 1949-54. Imperialism Imprisoned (London: Macmillan, 1996), Chapters 2, 4 and 5. 59. A flavour of the struggle for survival that these long-established British firms faced after 1949 is conveyed by Robin Hutcheon, The Merchants of Shameen. The Story of Deacon & Co (Hong Kong: n.p., 1990), pp. 98-114. 60. The four were theJardine and Swire Groups, together with Hutchison Whampoa and Wheelock Marden. Jon Halliday, "Hong Kong: Britain's Chinese Colony", New Left Review, No. 87-8 (September-December 1974), pp. 93-4. 61. The Hongkong Bank was the largest British company. If its subsidiary, the Hang Seng Bank, had been included with the Hongkong Bank, their combined share would have been 25 percent. Anthony Rowley, "Shroff: For Princely Hong, Read Cheung Kong", Far Eastern Economic Review, 7 February 1985. 62. The narrowness of the British merchant's traditional outlook may be found in the observations of Sir Franklyn Gimson, quoted in Alan Birch, "Confinement and Constitutional Conflict in Occupied Hong Kong 1941-45", Hong Kong LawJournal, Vol. 3, Part 3 (1973), p. 311. 63. Darwin, Britain and Decolonisation, p. 55; Bickers in Brown & Foot (eds), Hong Kong's Transitions, 1842-1997, pp. 40-1. 64. Christopher Patten, "Hong Kong History", in Hong Kong 1997. A Review of 1996 (Hong Kong: Information Services Department, 1997), pp. 2-3. 65. K. M. A. Barnett, Hong Kong. Report on the 1961 Census (Hong Kong: Government Printer, n.d.), Vol. II, pp. lxvii, 69. The consequences of the 1961 obstacles to adequate schooling were noted subsequently in Census and Statistics Department, Hong Kong Population and Housing Census 1971 Main Report (Hong Kong: n.p., n.d.), p.65. 66. Jeffrey Henderson, "The Political Economy of Technological Transformation in 242 Notes to Pages 17-21 the Hong Kong Electronics Industry", in Edward K. Y. Chen et al. (eds), Industrial and Trade Development in Hong Kong (Hong Kong: Centre of Asian Studies, 1991), p.87. 67. A total of 10,000 children were medically examined for clinical symptoms of inadequate nutrition. The survey and its results were described by H. N. Wong, Medical Officer i/c Schools, "Nutrition Survey" (January 1955, mimeo) in Hong Kong Public Records Office HKRS163-1-1853 "Undernourishment Among Children of School Age". This file records how, because of their unwillingness to start a school milk programme, officials sought to put part of the blame for undernourishment on a lack of health education. 68. David R. Phillips, The Epidemiological Transition in Hong Kong. Changes in Health and Disease Since the Nineteenth Century (Hong Kong: Centre of Asian Studies, 1988), pp. 18, 30. Maternal health is measured here by perinatal mortality rates. Chow Chun-bong and Sam Lau Sum-ping, "Physical Wellbeing of Hong Kong Children", in Nia A. Pryde and Mona M. Tsoi (eds), Hong Kong's Children: Our Past, Their Future (Hong Kong: Centre of Asian Studies, 1999), p. 81. On the community's role in achieving good health standards, see Joel W. Hay, Health Care in Hong Kong. An Economic Policy Assessment (Hong Kong: Chinese University Press, 1992), pp. 4, 31. 69. See Anthony Bing-leung Cheung and Kin-sheun Louie, "Social Conflicts in Hong Kong: 1975-1986", and Lau Siu-kai and Wan Po-san, "Social Conflicts in Hong Kong: 1987-1995", in Lau Siu-kai (ed.), Social Development and Political Change in Hong Kong (Hong Kong: Chinese University Press, 2000). 70. Income data are available in Hon-Kwong Lui, Income Inequality and Economic Development (Hong Kong: City University of Hong Kong Press, 1997), pp. 46-9. CHAPTER I 1. Nicholas Thomas, Democracy Denied. Identity, Civil Society and Illiberal Democracy in Hong Kong (Aldershot: Ashgate, 1999), p. 25. 2. The number of local Administrative Officers increased from one to seventy-nine between 1950 and 1975. Data are from Report on the Civil Service 1974-75 (Hong Kong: Government Printer, 1975), p. 30. 3. Stephen Vines, Hong Kong. China's New Colony (London: Aurum Press, 1998), pp. 70-2. 4. G. E. Strickland, Attorney General, Hong Kong Hansard, 20 October 1948, p. 287. 5. This "dogma" was noted by Ackbar Abbas, Hong Kong. Culture and the Politics of Disappearance (Minneapolis: University of Minnesota Press, 1997), pp. 71, 81. 6. Report ofthe Housing Commission (Legislative Council Session Paper 10/1923), pp. 124-7. Racial discrimination was disclaimed as a consideration. Nevertheless, of this 22-page official document dealing with a desperate housing crisis, a full three pages were devoted to the problems of "persons of British race", a very tiny fraction of the population. 7. Before World War II, death rates for the Chinese population sometimes rose to twice the levels of the non-Chinese community, while as late as 1951, half the deaths in Hong Kong were caused by infections and illnesses associated with poverty and over-crowding. See David R. Philips, The Epidemiological Transition in Hong Kong. Changes in Health and Disease Since the Nineteenth Century (Hong Kong: Centre of Asian Studies, 1988), pp. 18,25,27. Notes to Pages 21-25 243 8. For the comparative data, see C. Grant and P. Yuen, The Hong Kong Health Care System (Sydney: University of New South Wales, 1998), pp. 19, 39-40, 44, 56. 9. Common terms of service for all new recruits to the Civil Service were not introduced until 1999. Government Information Services, 29 September 1998. 10. George N. Curzon, Problems of the Far East (London: Archibald Constable & Co, 1896), pp. 419-21. See also note 41 below. 11. Emphasis in the original. Report of the Housing Commission, p. 112. 12. Such spouses were the cause of considerable apprehension once the ban on interracial marriages began to weaken after World War II. See, for example, the 1947 comments of the Commissioner of Police and other officials in Hong Kong Public Records Office HKRS163-1-422, "European Inspectorate ... Marrying Ladies Not of Pure European Descent." 13. Report ofCommittee on Rentals for Government Quarters (Legislative Council Sessional Paper 8/1938), pp. 124-5. 14. In 1996, the average residential unit of approximately 70 square metres rented for US$2,560 to US$3,850 per month in the private sector. B. Renaud et al., Markets at Work. Dynamics of the Residential Real Estate Market in Hong Kong (Hong Kong: Hong Kong University Press, 1997), pp. 41-2. Government quarters were, of course, far more spacious. 15. Denis Bray, Hong Kong Metamorphosis (Hong Kong: Hong Kong University Press, 2001), pp. 36-7. 16. Steve Tsang, A Modern History ofHong Kong (Hong Kong: Hong Kong University Press, 2004), p. 25. 17. On the special fees for civil servants, see "SSEE Gives Way to AAT", Far Eastern Economic Review (FEER hereafter), 24 March 1978. On the excessive subsidies, see David Baird, "Hongkong: Breach of Privilege", FEER, 5 June 1971. 18. James Hayes, "East and West in Hong Kong: Vignettes from History and Personal Experience", in Elizabeth Sinn (ed.), Between East and West. Aspects of Social and Political Development in Hong Kong (Hong Kong: Centre of Asian Studies, 1990), p. 9. 19. The reasons for this trend are analysed in a striking essay by Henry Lethbridge, "The Yellow Fever", FEER, 28 April-4 May 1968. 20. Ian Scott, "Generalists and Specialists", in Ian Scott and John P. Burns (eds), The Hong Kong Civil Service and Its Future (Hong Kong: Oxford University Press, 1988), pp. 24-5; Henry Lethbridge, Hong Kong: Stability and Change. A collection of essays (Hong Kong: Oxford University Press, 1978), p. 33. 21. N. J. Miners, The Government and Politics of Hong Kong (Hong Kong: Oxford University Press, 1975), p.131. 22. Norman Miners, Hong Kong Under Imperial Rule, 1912-1941 (Hong Kong: Oxford University Press, 1987), pp. 88-9. 23. See the scornful views about the London School of Economics, for example, and the reservations about democracy's role in post-colonial societies noted in Brian Wilson, Hong Kong Then (Durham: The Pentland Press Ltd, 2000), pp. 78-9, Ill. 24. Lau Siu-kai and Kuan Hsin-chi, The Ethos of the Hong Kong Chinese (Hong Kong: Chinese University Press, 1988), p. 22. 25. MaIjorie Topley, "The Role of Savings and Wealth Among Hong Kong Chinese", in 1. C. Jarvie (ed.), Hong Kong: A Society in Transition. Contributions to the Study of Hong Kong Society (London: Routledge & Kegan Paul, 1969), p. 193. 244 Notes to Pages 25-31 26. Emily Lau, "The Judiciary Faces Major Task in 1997 Run-up: Disorder in the Courts", FEER, 20 April 1989. 27. S. N. G Davies in "One Brand of Politics Rekindled", Hong Kong LawJournal, Vol. 7, No.1 (1977), p. 57. 28. Emphasis in the original. Austin Coates, Myself a Mandarin (London: Frederick Muller, 1968), pp. 9, 62, 64-5. 29. John Walden, Excellency, Your Gap is Growing! (Hong Kong: All Noble Co Ltd, 1987), p.13. 30. James Hayes, Friends & Teachers. Hong Kong and Its People 1953-87 (Hong Kong: Hong Kong University Press, 1996), P 301. 31. David Faure (ed.), A Documentary History ofHong Kong: Society (Hong Kong: Hong Kong University Press, 1997), pp. 10, 181. Butters included twenty "case studies" of individual workers and their circumstances. H. R. Butters, Report on Labour and Labour Conditions in Hong Kong (Hong Kong: Noronha & Co.,Ltd, 1939), pp. 15763 . 32. Ng Sek-hong, "The Development of Labour Relations in Hong Kong and Some Implications for the Future", in Ian Nish et al. (eds), Worn and Society. Labour and Human Resources in East Asia (Hong Kong: Hong Kong University Press, 1996), p. 290. 33. There were men who were not captives of the typical expatriate attitudes, among them Sir Selwyn Selwyn-Clarke (Director of Medical and Health Services), George Rowe (Director of Social Welfare) , W. R. Norman (Assistant Director of Housing) and Sir Hamish Macleod (Financial Secretary). 34. e.g., Hayes in Sinn (ed.), Between East and West, pp. 8-9. 35. Maria H. A. Jashook, "On Colonies, Colonials, and the Colonized: Contextualizing Women's Studies in Hong Kong", in Fanny M. Cheung (ed.), EnGendering Hong Kong Society. A Gender Perspective of Women's Status (Hong Kong: Chinese University Press, 1997), p. 348. An impressive list of these courageous individuals has been assembled in Susanna Hoe, The Private Life of Old Hong Kong. Western Women in the British Colony 1841-1941 (Hong Kong: Oxford University Press, 1991). 36. Pik-wan Wong, "The Hong Kong Women's Movement in Transition", in Joseph Y S. Cheng (ed.), Political Participation in Hong Kong. Theoretical Issues and Historical Legacy (Hong Kong: City University of Hong Kong Press, 1999), pp. 212-3. 37. Christopher Patten, "Hong Kong History", in Hong Kong 1997. A Review of 1996 (Hong Kong: Information Services Department, 1997), p. 2. 38. See G. B. Endacott, Hong Kong Eclipse (Hong Kong: Oxford University Press, 1978), p.320. 39. See CatherineJones, Promoting Prosperity. The Hong Kong Way ofSocial Policy (Hong Kong: Chinese University Press, 1990), p. 252. 40. Ian Scott, "The Public Service in Transition: Sustaining Administrative Capacity and Political Neutrality", in Robert Ash et al. (eds), Hong Kong in Transition. The Handover Years (London: Macmillan Press Ltd, 2000), p. 160. 41. Hayes in Sinn (ed.), Between East and West, pp. 8, 11. CHAPTER II 1. A striking example is the case of Ng Choy. See Linda Pomerantz-Zhang, Wu Tinfang (1842-1922). Reform and Modernization in Modern Chinese History (Hong Kong: Hong Kong University Press, 1992), pp. 56-67 in particular. Notes to Pages 32-34 245 2. Philip Woodruff, The Men Who Ruled India. The Guardians (London:Jonathan Cape, 1954), pp. 208-11; S. A. Pakeman, Ceylon (London: Ernest Benn Limited, 1964), p. 131. 3. Lennox A. Mills, British Rule in Eastern Asia. A Study ofContemporary Government and Economic Development in British Malaya and Hong Kong (London: Oxford University Press, 1942), pp. 395, 410, 414. 4. Robin McLaren, Britain's Record in Hong Kong (London: Royal Institute of International Affairs, 1997), p. 45. 5. Steve Tsang, Hong Kong. An Appointment With China (London: 1. B. Tauris, 1997), pp.117-9. 6. Steve Tsang, A Modern History ofHong Kong (Hong Kong: Hong Kong University Press, 2004), p. 207. 7. J. Steve Hoadley, '''Hong Kong is the Lifeboat': Notes on Political Culture and Socialization", Journal of Oriental Studies, Vol. VIII, No.1, 1970, p. 211; Lau Siukai , Society and Politics in Hong Kong (Hong Kong: Chinese University Press, 1982), p.118. 8. Well summarized byJohn Rear, "One Brand of Politics", in Keith Hopkins (ed.), Hong Kong: The Industrial Colony (Hong Kong: Oxford University Press, 1971), pp. 56-8. 9. Marie-Claire Bergere, '''The Other China': Shanghai From 1910 to 1949", in Christopher Howe (ed.), Shanghai. Revolution and Development in an Asian Metropolis (Cambridge: Cambridge University Press, 1981), pp. 7-9; Robert Blake, Jardine Matheson. Traders ofthe Far East (London: Weidenfeld & Nicolson, 1999), pp. 2002 . 10. Stephanie Po-yin Chung, Chinese Business Groups in Hong Kong and Political Change in South China, 1900-25 (London: Macmillan Press Ltd, 1998), p. 26. 11. Steve Tsang (ed.), A Documentary History ofHong Kong. Government and Politics (Hong Kong: Hong Kong University Press, 1995), pp. 72-80. 12. At the same time, London was deterred from political reforms by the knowledge that these would involve granting the franchise to British citizens regardless of race, which would mean that Hong Kong-born Chinese would form the majority of the electorate. John Darwin, "Hong Kong in British Decolonisation", inJudith M. Brown and Rosemary Foot (eds), Hong Kong's Transitions, 1842-1997 (London: Macmillan Press Ltd, 1997), pp. 19-20. 13. Henry Lethbridge, Hong Kong: Stability and Change. A Collection of Essays (Hong Kong: Oxford University Press, 1978), pp. 20,25. 14. Darwin in Brown and Foot (eds), Hong Kong's Transitions, p. 22. 15. See the comments of Sir Franklyn Gimson, the Colonial Secretary who arrived on the eve of theJapanese occupation from Ceylon (now Sri Lanka) where official attitudes towards political reform were much more liberal. Alan Birch, "Confinement and Constitutional Conflict in Occupied Hong Kong 1941-45", Hong Kong LawJournal, Vol. 3, Part 3 (1973), p. 311. 16. A modern marriage law was enacted by the Chinese government in 1930. Hong Kong's Marriage Reform Ordinance came into force in 1971. The colonial administration's reluctance to protect women in marriage is on record in Chinese Marriages in Hong Kong (Hong Kong: Government Printer, 1960), The McDouallHeenan Report 1965 (Hong Kong: Government Printer, 1965) and Colonial Secretariat, White Paper on Chinese Marriages in Hong Kong (Hong Kong: Government Printer, 1967). 246 Notes to Pages 34-39 17. Lau Siu-kai and Kuan Hsin-chi, "The Changing Political Culture of the Hong Kong Chinese", inJoseph Y S. Cheng (ed.), Hong Kong in Transition (Hong Kong: Oxford University Press, 1986), pp. 31, 34, 36. 18. Lau, Society and Politics in Hong Kong, p. 36. 19. Felix Patrikeeff, Mouldering Pearl. Hong Kong at the Crossroads (London: George Philip, 1989), pp. 88-9. 20. Brian Wilson, Hong Kong Then (Durham: The Pentland Press Ltd, 2000), p. 112. 21. For an example of such misconduct by an Executive Councillor in arranging a land grant, seeJohn Walden, "Accountability: Past, Present and Future", in William McGurn (ed.), Basic Law, Basic Questions. The Debate Continues (Hong Kong: Review Publishing Company Ltd, 1988), pp. 61-2. 22. Ambrose Yeo-chi King, "Administrative Absorption of Politics in Hong Kong: Emphasis on the Grass Roots Level", in Ambrose Y C. King and Rance P. L. Lee (eds), Social Life and Development in Hong Kong (Hong Kong: Chinese University Press, 1981), pp. 129-35. 23. The Jesuit archives in Hong Kong identity the offending article as "Comments on Our Time. Trial byJury", Outlook, Vol. 2, No.3 (March 1953). Until 1977, Hong Kongjudges were not selected routinely from among barristers in private practice, as they would have been in the United Kingdom. 24. The case and the issues involved are described by Patrick Yu Shuk-siu, Tales from No.9 Ice House Street (Hong Kong: Hong Kong University Press, 2002), pp. 11-2, 57. His recollection of some details differs from the Jesuit archives. 25. For an example of what provoked the colonial administration, see Hong Kong Diocesan Convention, Social Dimension of the Church (Hong Kong: Diocesan Convention, n.d.). See also Sergio Ticozzi, Historical Documents of the Hong Kong Catholic Church (Hong Kong: Hong Kong Catholic Diocesan Archives, 1997), pp. 186-90. 26. David Baird, "Thy Will Be Done", Far Eastern Economic Review (FEER hereafter), 29January 1970. 27. For a further discussion of these issues, see Leo F. Goodstadt, "Foreword: Faith, Citizenship and Colonialism in Hong Kong", in Beatrice Leung and Shun-hing Chan, Changing Church and State Relations in Hong Kong, 1950-2000 (Hong Kong: Hong Kong University Press, 2003). 28. Hong Kong Observers, Pressure Points. A Social Critique (Hong Kong: Summerson Eastern Publishers Ltd, 1981), pp. 5-6. 29. Lo Shiu-hing, The Politics ofDemocratization in Hong Kong (London: Macmillan Press Ltd, 1997), pp. 39-42; Alvin Y So, Hong Kong's EmbattlRd Democracy. A Societal Analysis (Baltimore: John Hopkins University Press, 1999), pp. 49, 61; Ian Scott, Political Change and the Crisis ofLegitimacy in Hong Kong (London: Hurst & Company, 1989), pp. 209, 291. 30. Anthony Sweeting, "Education Policy and the 1997 Factor: The Art of the Possible Interacting With the Dismal Science", in Mark Bray and W. O. Lee (eds), Education and Political Transition: Implications ofHong Kong's Change ofSovereignty (Hong Kong: Comparative Education Research Centre, 1997), p. 30. 31. G. B. Endacott, Hong Kong Eclipse (Hong Kong: Oxford University Press, 1978), pp. 264, 283. 32. On the historical background, see G. B. Endacott, Government and PeoplR in Hong Kong. A Constitutional History (Hong Kong: Hong University Press, 1964), pp. 169, 226-8. Notes to Pages 39-42 247 33. Nigel Ruscoe, "A Conspiracy of Silence", FEER, 4 May 1961. 34. N. J. Miners, The Government and Politics of Hong Kong (Hong Kong: Oxford University Press, 1975), pp. 79-80. 35. Miners, The Government and Politics ofHong Kong, pp. 83. 36. N. J. Miners, The Government and Politics of Hong Kong (Hong Kong: Oxford University Press, 1998), p. 94. 37. Michael Sze Cho-cheung, Secretary for the Civil Service, Hong Kong Hansard, 30 November 1994, p. 1146. 38. See, for example, the views recorded by Patrick Yu Shuk-siu, A Seventh Child and the Law (Hong Kong: Hong Kong University Press, 1998), pp. 124-7, 145-8. 39. Ahmed Shafiqul Huque et al., The Civil Service in Hong Kong. Continuity and Change (Hong Kong: Hong Kong University Press, 1998), p. 68. 40. Reviews within the Government Secretariat based on Civil Service Branch data showed that in 1989, the "promotion ratio" for both expatriate and local officers had been 1:7.5. In 1992, this had improved to 1:5 for expatriates but deteriorated to 1:8 for local officers. 41. See the interview material in May Holdsworth, Foreign Devils. Expatriates in Hong Kong (Hong Kong: Oxford University Press, 2002), pp. 52-5. 42. The two Chief Secretaries were Sir Philip Haddon-Cave (in a private speech, "The Practice of Politics in Hong Kong", delivered 14June 1985) and Sir David AkersJones interviewed in Gerd Balke, Hong Kong Voices (Hong Kong: Longman, 1989), p.153. 43. James Hayes, The Rural Communities ofHong Kong. Studies and Themes (Hong Kong: Oxford University Press, 1983), pp. 133-4. 44. Sir Robert Black worked on this assumption during his period as Governor from 1958-64. Tsang, A Modern History ofHong Kong, p. 159. 45. A well-known example was the influential intellectual, Chan Kwan Po. Chan Lau Kit-ching, "The Post-War Re-establishment of the University of Hong Kong, 194550 ", in Chan Lau Kit-ching and Peter Cunich (eds), An Impossible Dream. Hong Kong University from Foundation to Re-establishment, 1910-1950 (New York: Oxford University Press, 2002), pp. 258-64. 46. S.J. Coombes, "The Coombes Report on Illegal Immigration in Hong Kong" (June 1959, mimeo), p. 6, presented to the Executive Council 15 December 1959. Hong Kong Public Records Office HKRS163-1-2052. 47. Hong Kong Government Personnel Security Instructions (Hong Kong: Government Printer, n.d.), paras 3 and 8 and Appendix 2. 48. This assumption comes through clearly from a senior expatriate who served in the Defence Branch. Wilson, Hong Kong Then, p. 135. 49. David Chu, My Way (Hong Kong: Lee Man Publication, 1995), p. 180. The security classification and handling of documents was laid down in some detail in Regulations ofthe Hong Kong Government. Volume 5: Security Regulations (Hong Kong: Government Printer, serial publication), Chapters II and III. 50. Also known as John Tsang Chao-ko. Gene Gleason, Hong Kong (London: Robert Hale Ltd, 1964), p. 86. 51. George Wright-Nooth, Prisoners of the Turnip Heads. Horror, Hunger and Humour in Hong Kong, 1941-1945 (London: Leo Cooper, 1994), p. 152. 52. Lau Siu-kai and Kuan Hsin-chi, The Ethos of the Hong Kong Chinese (Hong Kong: Chinese University Press, 1988), pp. 101, 104. 248 Notes to Pages 42-47 53. Mary Lee, "Hongkong: Work Suspended: Investigators Close Their Files on Corrupt Property Developers After Only One Conviction", FEER, 21-27 August 1981. 54. See Lethbridge's comments, Hong Kong: Stability and Change. A Collection ofEssays, p.222. 55. James Hayes, Friends & Teachers. Hong Kong and Its People 1953-87 (Hong Kong: Hong Kong University Press, 1996), p. 130. 56. Dr Hayes describes his Resettlement Department service in Hayes, Friends & Teachers. Hong Kong and Its People 1953-87, Chapter 3. He does not mention this incident, the details of which can be found in Hong Kong Public Records Office HKRS163-1-2854, "Cleansing Services in Resettlement Estates", M.l, 21 July 1963; M. 3, 23July 1963; Governor's minute, 26July 1963; Commissioner of Police memo, 10 May 1963; Commissioner for Resettlement memo, 2 July 1963. This last document set out Dr Hayes' response to the problem. 57. Denis Bray, Hong Kong Metamorphosis (Hong Kong: Hong Kong University Press, 2001), pp. 136, 177-8, 187. 58. Patrick H. Hase, "The District Office", in Elizabeth Sinn (ed.), Hong Kong, British Crown Colony, Revisited (Hong Kong: Centre of Asian Studies, 2001), pp. 143-4. 59. Reports ofthe Standing Committee and the Advisory Committee on Corruption (Hong Kong: Government Printer, n.d.), p. 46. 60. A well-informed expatriate author devoted a perceptive chapter to crime, triads and corruption. Gleason, Hong Kong, Chapter 7. One magazine article, heavily briefed by police sources, listed concrete examples of corruption in virtually every government department dealing with the public. L. F. Goodstadt, "Corruption: The Fixers", FEER, 30 July 1970. 61. For two examples of such surveys, see L. F. Goodstadt, "The Mandarins' Heirs", FEER, 6-12 April 1969; "Firemen With a Hose for Business", FEER, 25 June 1973. 62. Brian Wilson was a good example of an expatriate alert to the dangers of corruption. Wilson, Hong Kong Then, pp. 118, 162. 63. Jonathan Dimbleby, The Last Governor. Chris Patten & the Handover of Hong Kong (London: Little Brown & Co, 1997), pp. 104-5. 64. Hayes, Friends & Teachers. Hong Kong and Its People 1953-87, pp. 290-1. 65. John Walden, Excellency, Your Gap Is Showing! (Hong Kong: Corporate Communications Ltd, 1983), pp. 79-80. 66. John Walden, Excellency, Your Gap Is Growing! (Hong Kong: All Noble Co Ltd, 1987), pp. 7, 20, 77, 80. 67. Sir David Akers:Jones, "Observations on Political Development in Hong Kong and Various Aspects of the Hong Kong-China Relationship", in Hong Kong in Transition 1992 (Hong Kong: One Country Two Systems Economic Research Institute, 1993), p.410. 68. Sir David Akers:Jones, "Recent History Revisited: Analysis and Hindsight", in Sinn (ed.), Hong Kong, British Crown Colony, Revisited, pp. 55-6. 69. Balke, Hong Kong Voices, p. 152. 70. See the analysis in Michael E. DeGolyer andJanet Lee Scott, "The Myth of Political Apathy in Hong Kong", Annals, Volume 547 (September 1996). 71. See Leo F. Goodstadt, "Hong Kong: An Attachment to Democracy", The Round Table, Issue 348 (1998). 72. Lord Fulton (Chairman), The Civil Service. Vol. 1. Report of the Committee, 1966-68 (Cmnd 3638/1968), pp. 95-6. Notes to Pages 47-51 249 73. Taxation Committee Report (Hong Kong: Noronha & Co., Ltd., 1939), p. 89; Hong Kong Hansard, 13 October 1938, p. 116. 74. Report ofthe Housing Commission 1935 (Hong Kong: Noronha & Co., 1938), p. 260. 75. Sir Geoffry Northcote, Governor, and Dr P. S. (later Sir Selwyn) Selwyn Clarke, Director of Medical Services, Hong Kong Hansard, 16 November 1939, pp. 219, 229. 76. Walden, Excellency, Your Gap Is Showing!, p. 59. He was commenting on senior Chinese personalities as well as expatriates. CHAPTER III 1. e.g., Roger Buckley, Hong Kong: The road to 1997 (Cambridge: Cambridge University Press, 1997), pp. 165-6. 2. Lennox A. Mills, British Rule in Eastern Asia. A Study ofContemporary Government and Economic Development in British Malaya and Hong Kong (London: Oxford University Press, 1942), p. 1. 3. Frank Welsh, A History ofHong Kong (London: Harper-Collins, 1993), pp. 453, 4559 ,464-5,510. 4. Margery Perham, Lugard: The Years ofAuthority 1898-1945 (London: Collins, 1960), pp. 287-8; Lord MacLehose, "Social and Economic Challenges", in Sally Blyth and Ian Wotherspoon, Hong Kong Remembers (Hong Kong: Oxford University Press, 1996), p. 121; Chris Patten, East and West. The Last Governor ofHong Kong on Power, Freedom and the Future (London: Macmillan, 1998), pp. 38-9, 43, 59-61. 5. Benny Tai Yiu-ting, "The Development of Constitutionalism in Hong Kong", in Raymond Wacks (ed.), The New Legal Order in Hong Kong (Hong Kong: Hong Kong University Press, 1999), p. 42. 6. See, for example, Sir Edward Youde, Governor, Hong Kong Hansard, 26 September 1984,p.5 7. Lord MacLehose, in Blyth and Wotherspoon, Hong Kong Remembers, p. 126. 8. Denis Bray, Hong Kong Metamorphosis (Hong Kong: Hong Kong University Press, 2001), p. 200. 9. D. K Fieldhouse, The West and the Third World. Trade, Colonialism, Dependence and Development (Oxford: Blackwell Publishers, 1999), p. 76. 10. Mills, British Rule in Eastern Asia. A Study of Contemporary Government and Economic Development in British Malaya and Hong Kong, p. 392. 11. These transfers were significant at senior levels. For example, Sir Robert Black served first as Colonial Secretary in Hong Kong and then as Governor in Singapore, before returning to Hong Kong as Governor in 1958. The Full Court Amendment Ordinance 1950 enabled the Chief Justices of Hong Kong and Singapore to act as judges in each other's courts. Details of transferred officers were compiled by G. C. Hamilton, "The Hong Kong Administrative Service 18621964 " (Hong Kong: Colonial Secretariat, 1964, mimeo). 12. For examples of the legislature's interest in Singapore and Malaya in the 1940s and 1950s, see Hong Kong Hansard: on taxation, 1 May 1947, pp. 133,135; security, 22 October 1948, p. 287; financial issues, 9 August 1950, p. 264; police, 7 March 1951, p. 56; housing, 7 April 1954, p. 151; water rates, 23 March 1955, p. 99; university development, 11 January 1956, p. 17. 13. The change in attitudes is very clear from Hong Kong Hansard, notably the contrast between H. D. M. Barton, 19 March 1962, p. 71 and Dr (later Sir) S. Y Chung, 2 October 1969, p. 53. 250 Notes to Pages 52-56 14. The relevant file shows no evidence that this excuse had any merit. It is significant that the Colonial Office had no intention of intervening in this issue; it merely wanted to be kept informed. See the exchange of correspondence between the Colonial Office and the Colonial Secretariat on 25 May and 31 July 1961 in Hong Kong Public Records Office HKRS163-1-2267/2268, "Public Utilities - Policy regarding the Control of ... " 15. The decision to deceive London was recorded on file without embarrassment. Hong Kong Public Records Office HKRS163-1-3489, "Handling of Communist Prisoners by Magistrates". 16. Lau Siu-kai, "Public Attitudes towards the Old and New Regimes", in Lau Siu-kai et aL (eds) , Indicatars of Social Development: Hong Kong 1997 (Hong Kong: Hong Kong Institute of Asia-Pacific Studies, 1999), p. 172. 17. Dean Barrett, General Manager, quoted in "The Crown Colony's Light and Power", Euromoney (September 1981), pp. 39-40. 18. Gavin Young, Beyond Lion Rock. The Story of Cathay Pacific Airways (London: Hutchison, 1988), pp. 203-5, 208, 216. The British government needed some political prodding from Hong Kong to honour its side of the bargain. See o. V. (later Sir Oswald) Cheung, Hong Kong Hansard, 27 March 1980, pp. 673-4. 19. For example, Frank H. H. King, The Hong Kong Bank in the Period ofDevelopment and Nationalism, 1941-1984. From Regional Bank to Multinational Group (Cambridge: Cambridge University Press, 1991), pp. 340-4. 20. Nigel Cameron, POWER. The Story of China Light (Hong Kong: Oxford University Press, 1982), pp. 200-2. 21. Financial attitudes are illustrated in Paul Ferris, The City, (London: Penguin Books, 1962), pp. 119, 130-40. Commercial attitudes are illustrated in W. V. Pennell, History ofthe Hong Kong General Chamber ofCommerce 1861-1961 (Hong Kong: n.p., 1961), pp. 76-8. 22. Monopolies and Mergers Commission, The Hongkong and Shanghai Banking Carporation. Standard Chartered Bank Limited. The Royal Bank ofScotland Group Limited. A Report on the Proposed Mergers (Cmnd 8472/1982), pp. 88,90. 23. Philip Bowring, "The Road to Britain: Hongkong Bank Stakes a Future With Britain's Midland Bank", Far Eastern Economic Review (FEER hereafter), 26 November 1987; Michael Taylor, "Hongkong & Shanghai to incorporate in Britain: The Bank does a bunk", FEER, 27 December 1990. 24. Peter Wesley-Smith, Constitutional & Administrative Law in Hong Kong. Text and Materials (Hong Kong: China and Hong Kong Law Studies, 1987), Vol. I, pp. 1634 . 25. Agnes S. M. Ku, Narratives, Politics and the Public Sphere. StrugglRs Over Political Refarm in the Final Transitional Years in Hong Kong (1992-1994) (Aldershot: Ashgate, 1999), p.139. 26. The post-colonial administration was still dealing with criticism on this subject after the British departure. Anson Chan, Chief Secretary, Government Information Services (GIS hereafter), 1 April 1998. 27. Norman Miners, Hong Kong Under Imperial Rule, 1912-1941 (Hong Kong: Oxford University Press, 1987), p. 278. 28. Mills, British Rule in Eastern Asia, pp. 456-8. 29. Catherine R. Schenk, Hong Kong as an International Financial Centre. Emergence and Development 1945-65 (London: Routledge, 2001), p. 63. Notes to Pages 56-59 251 30. Sir John Bremridge, The 1985-86 Budget: Speech by the Financial Secretary ... 1985 (Hong Kong: Government Printer, 1985), pp. 7-8. 31. Over health services, for example. Robin Gauld and Derek Gould, The Hong Kong Health Sector: Development and Change (Hong Kong: Chinese University Press, 2002), p.43. 32. David Faure takes a different view of London's influence. He argues that complaints and promptings from the British government played a more positive role during this period. See his important essay: "In Britain's Footsteps: The Colonial Heritage", in David Faure (ed.), Hong Kong: A Reader in Social History (Hong Kong: Oxford University Press, 2003), especially pp. 665-8. However, Grantham's ability to block Colonial Office attempts to increase Hong Kong's commitment to welfare is well illustrated by the documents reproduced in David Faure, Colonialism and the Hong Kong Mentality (Hong Kong: Centre of Asian Studies, 2003), pp. 112-26. 33. Anthony Sweeting, A Phoenix Transformed. The Reconstruction of Education in PostWar Hong Kong (Hong Kong: Oxford University Press, 1993), pp. 137,227,238. 34. For a round-up of official and business views, see L. F. Goodstadt, "What About the Workers?", FEER, 23 June 1966. 35. The best treatment of this issue is Steve Tsang, Democracy Shelved: Great Britain, China and Attempts at Constitutional Reform in Hong Kong, 1945-52 (Hong Kong: Oxford University, 1988). 36. Brian Hook, "National and International Interests in the Decolonisation of Hong Kong, 1946-97", in Judith M. Brown and Rosemary Foot (eds), Hong Kong's Transitions, 1842-1997 (London: Macmillan, 1997), pp. 87-8; Welsh, A History of Hong Kong, pp. 439-40. 37. Alexander Grantham, Via Ports. From Hong Kong to Hong Kong (Hong Kong: Hong Kong University Press, 1965), p. 112. 38. Sir Robert Black, Governor, Hong Kong Hansard, 26 March 1964, p. 153. 39. Sir Alexander Grantham, Hong Kong Hansard, 18 December 1957, p. 291. 40. Tsang, Democracy Shelved, p. 165. 41. Ian Scott, "Introduction", in Ian Scott (ed.), Institutional Change and the Political Transition in Hong Kong (London: Macmillan Press Ltd, 1998), p. 7. 42. Leo F. Goodstadt, "China and the Selection of Hong Kong's Post-Colonial Political Elite", China Quarterly (September 2000). 43. C. E. M. Terry, Hong Kong Hansard, 20 March 1957, p. 61. 44. This point is made specifically in Hong Kong Public Records Office HKRSI63-12522 , "FINANCE Investment of Colonial Government Funds", M. 8, 12 May 1964. 45. Alex H. Choi, "State-Business Relations and Industrial Restructuring", in Tak-Wing Ngo (ed.), Hong Kong's History. State and Society Under Colonial Rule (London: Routledge, 1999), pp. 149-50. 46. Contemporaries also found the system difficult to comprehend. See ""Vhat Price Sterling?", FEER, 26 November-2 December 1967. 47. Douglas M. Kendrick, Price Control and Its Practice in Hong Kong (Hong Kong: K Weiss, 1954), p. 188. 48. G. B. Endacott, A History ofHong Kong (Hong Kong: Oxford University Press, 1973), p. 299; Kendrick, Price Control and Its Practice in Hong Kong, pp. 188-90. 49. Sir John Cowperthwaite, Financial Secretary, Hong Kong Hansard, 26 April 1967, pp.294-6. 252 Notes to Pages 59-61 50. Ronald Findlay and Stanislaw Wellisz, "Hong Kong", in Ronald Findlay and Stanislaw Wellisz (eds), The Political Economy ofPoverty, Equity, and Growth. Five Small Open Economies (New York: Oxford University Press, 1993), p. 47; Henry Smith, John Stuart Mill's Other Island. A Study of the Economic Development of Hong Kong (London: Institute of Economic Affairs, 1966), pp. 18-21. 51. A good account of the imposition and development of these trade controls and their application to Hong Kong is provided by Wenguang Shao, China, Britain and Businessmen: Political and Commercial Relations, 1949-57 (Basingstoke: Macmillan, 1991), chapter 4. For the vigour with which the United States sought to impose its embargo, see Anthony Polsky, "With Forked Tongue", FEER, 22 May-1 June 1968. 52. Detailed monthly statistics of China's purchases of sterling through Hong Kong from 1955 to 1968 are recorded in Hong Kong Public Records Office HKRS1631 -2055/2660. Data on purchases in 1970 and 1971 are derived from the same sources as "Banking Statistics" described in the "Statistical Appendix". China's trade data are derived from State Statistical Bureau, Statistical Yearbook of China 1981 (Hong Kong: Economic Information & Agency, 1982), p. 357. For a revealing anecdote about Prime Minister Zhou Enlai's sensitivity to the trade issue in the context of Sino-British relations, see Liu Xiaohong, China's Ambassadors: The Rise ofDiplomatic Professionalism Since 1949 (Hong Kong: Hong Kong University Press, 2001), p. 101. 53. The American dimension, together with Washington's retreat from its original draconian ban, is described in Lawrence C. Reardon, The Reluctant Dragon. Crisis Cycles in Chinese Foreign Economic Policy (Hong Kong: Hong Kong University Press, 2002), pp. 76-9. 54. The United Kingdom's vain attempts to take charge at an early stage were recorded in some detail by the FEER: "Problems of Hongkong's Unofficial Exchange Market", 14 April 1948, "Exchange and Financial Markets", 21 April 1948 and "The Vexed Question of Hongkong", 17 March 1948. 55. Frank H. H. King, Money in British East Asia (London: HMSO, 1957), pp. 115, 124. 56. The official was Sir John Cowperthwaite. The internal government disputes and the relevant financial market analysis are set out with impressive lucidity by Schenk, Hong Kong as an International Financial Centre, pp. 80-93. 57. King, The Hong Kong Bank in the Period ofDevelopment and Nationalism, 1941-1984. From Regional Bank to Multinational Group, pp. 345-6. 58. Well illustrated in P. H. M.Jones, "Hongkong: All Pull Through", FEER, 7-13 April 1968. The official historian of the Hongkong Bank explains with some delicacy how the regulations were avoided. King, The Hong Kong Bank in the Period of Development and Nationalism, 1941-1984. From Regional Bank to Multinational Group, pp.430-1. 59. L. F. Goodstadt, "London Line", FEER, 4 May 1967. 60. Personal information from interviews in 1967-70 with Hong Kong officials involved in the negotiations. King hints at these pressure tactics in The Hong Kong Bank in the Period of Development and Nationalism, 1941-1984. From Regional Bank to Multinational Group, p. 634. 61. Editorial Staff, "Bluff and Blackmail", FEER, 24-30 November 1968. The arrangements were set out in H. M. Treasury, The Basle Facility and the Sterling Area (Cmnd 3787/1968). Notes to Pages 61-65 253 62. For the documentary evidence, see David Faure and Lee Pui-tak (eds), A Documentary History of Hong Kong: Economy (Hong Kong: Hong Kong University Press, 2004), pp. 217-31. 63. Y C.Jao, Banking and Currency in Hong Kong. A Study ofPostwar Financial Development (London: Macmillan, 1974), pp. 144-5. 64. Jao, Banking and Currency in Hong Kong. A Study of Postwar Financial Development, pp. 143-8. On the surprise that these developments evoked at the time, see Benjamin J. Cohen, The Future of Sterling as an International Currency (London: Macmillan, 1971), p. 183, f.n. 2. 65. Leo Goodstadt, "Currencies: The HK$ Compromise", FEER, 15 July 1972. 66. Tony Latter, Deputy Chief Executive, Hong Kong Monetary Authority 1998-2002 and Deputy Secretary for Monetary Mfuirs 1982-85, "Hong Kong's Exchange Rate Regimes in the Twentieth Century: The Story of Three Regime Changes", Hong Kong Institute for Monetary Research Seminar Paper, 5 February 2004, pp. 23, 28. He indicates that consultation with London was minimal in 1972 but more extensive in 1983, mainly at Hong Kong's request. 67. See Hong Kong Hansard: T. Megarry, Colonial Secretary, 16 October 1947, p. 292; Sir Man-kam Lo, 30 March 1948, pp. 83-5; D. M. MacDougall, Colonial Secretary, 2June 1948, p. 166; Sir Alexander Grantham, 20 October 1948, p. 280. 68. Steve Tsang (ed.), A Documentary History ofHong Kong. Government and Politics (Hong Kong: Hong Kong University Press, 1995), pp. 144-8. 69. Choi in Ngo (ed.), Hong Kong's History. State and Society Under Colonial Rule, pp. 146,150. 70. A. G. Clarke, Financial Secretary, Hong Kong Hansard, 27 March 1957, p. 116; King, The Hongkong Bank in the Period of Development and Nationalism, 1941-1984. From Regional Bank to Multinational Group, p. 338. 71. Sir John Cowperthwaite, Hong Kong Hansard, 1 March 1967, p. 83; 25 February 1970, p. 363. 72. Leo Goodstadt, "The governmentjoins the monopoly", Euromoney (July 1979), p. 139. 73. An unusually frank account of these issues was provided by Cowperthwaite, Hong Kong Hansard, 26 March 1969, pp. 206-7. 74. London offered guarantees against devaluation to induce Hong Kong and other governments to retain their sterling holdings between 1968 and 1974. Significant transfers away from London took place, nevertheless. Hong Kong 1975. Report for the Year 1974 (Hong Kong: Hong Kong Government Printer, 1975), pp. 30-1. 75. These included the definition of the minimum Hong Kong content to quality for preferential tariff treatment and the certification processes to label products as Hong Kong-made. See, for example, Hong Kong General Chamber of Commerce Report for the Year 1936 (Hong Kong: n.p., 1937), pp. 18-24. 76. Report of the Commission ... to Enquire Into the Causes and Effects of the Present Trade Recession ... (Hong Kong: Noronha & Co., 1935), pp. 83, 85-6. 77. James Riedel, The Industrialization of Hong Kong (Tiibingen: J. C. B. Mohr (Paul Siebuck), 1974), pp. 26-7. 78. See Kayser Sung, "Hongkong: Big Stakes at Geneva?", FEER, 20 July 1961. 79. The breakthrough came in negotiations conducted in London that year by C. P. (later Sir Philip) Haddon-Cave recorded in "Telephone Messages Passed to Hong Kong During the Swedish/Norwegian/U.K./Hong Kong consultations on exports 254 Notes to Pages 65-69 of cotton and non-cotton textiles" (10-27 June 1968, mimeo). See "Eleventh Telephone Message" (p. 4) in particular. 80. See South China Morning Post, 10 January 2000. 81. Kayser Sung, "Trading on From 1997, With Special Reference to Hong Kong's Textile Agreements", in Y C.Jao et al. (eds), Hong Kong and 1997. Strategies for the Future (Hong Kong: Centre of Asian Studies, 1985), pp. 312-3. 82. A Correspondent, "A Farewell to the British Tommy"', FEER, 14 April 1975. 83. These operations are summarized in John Gittings, "China-Watching III Hongkong", in Association for Radical East Asian Studies, Hong Kong: Britain 5 Last Colonial Stronghold, Vol. 2, No.1 (1972), pp. 111-4, 115-7. 84. Derek Davies, "The Road to Hongkong: A Touch of the Jitters", FEER, 18 March 1977; Philip Bowring, "Letter From Hongkong", FEER, 18January 1980; Mary Lee, "The Seeds of Worker Unrest", FEER, 18-24 April 1980. 85. As set out in such publications as: Association for Radical East Asian Studies, Hong Kong: Britain 5 Last Colonial Stronghold Vol. 2, No.1 (1972); Hong Kong: A Case to Answer (Nottingham: Spokesman Books, 1974); Robin Porter, Child Labour in Hong Kong (Nottingham: Spokesman Pamphlet No. 50, n.d.); H. A. Turner et al., The Last Colony: But Whose? A Study of the Labour Movement, Labour Market and Labour Relations in Hong Kong (Cambridge: Cambridge University Press, 1980). 86. The dangers of such a backlash, especially from the business elite, can be gauged from Lo Tak-shing, Hong Kong Hansard, 27 October 1976, p. 111. 87. Dick Wilson, "Hongkong: Row Over the 'Callous Colony"', FEER, 31 December 1976. 88. Notably from Chung. See Hong Kong Hansard, 27 October 1976, pp. 79-80. 89. Sir Murray MacLehose, Hong Kong Hansard, 6 October 1976, p. 20. 90. Francis Tien Yuan-hao, Hong Kong Hansard, 30 March 1978, p. 696; Kenneth Topley, Director of Education, Hong Kong Hansard, 12 April 1978, p. 737. 91. Sir Murray MacLehose, Hong Kong Hansard, 10 October 1979, p. 34; 1 October 1980, p. 33; 7 October 1981, p. 33. 92. Rodney Hobson, "Communications: Crossed Wires on a Phone Bill", FEER, 26 September-2 October 1980; "Cartel Cloaked in Secrecy", and "Communications: Sorry, Wrong Numbers", FEER, 1-7 May 1981. 93. For a good summary of the background to these developments, see Milton Mueller, International TelRcommunications in Hong Kong: The Casefor Liberalization (Hong Kong: Chinese University Press, 1991), pp. 40-7, 65-78. 94. Except for the mobile sector, where competition was introduced in 1985. Hong Kong Hansard, 13 March 1985, pp. 802-4. 95. The sorry record of the Hong Kong Telephone Company is elaborated in Chapter V, "In Place of Democracy - A Privileged Elite". 96. Milton Mueller, TelRcom Policy and Digital Convergence (Hong Kong: City University of Hong Kong Press, 1997), p. 86. On the company's poor image and related problems see Michael Westlake, "Hanging on the Line: Hong Kong Telecoms Firm Awaits Policy Review", FEER, 6 February 1992. 97. N. J. Miners, "Government and Politics", in David Lethbridge (ed.), The Business Environment in Hong Kong (Hong Kong: Oxford University Press, 1980), p. 156; Alvin Rabushka, Hong Kong. A Study in Economic Freedom (Chicago: University of Chicago Press, 1979), p. 23. 98. See, for example, the exchanges between appointed members and officials in Hong Notes to Pages 70-74 255 Kong Hansard, 10 August 1977, pp. 1200-1; 24January 1979, pp. 380-2. An effective participant was Lydia (later Baroness) Dunn, a senior executive with the Swire Group which owned Cathay Pacific. Hong Kong Hansard, 18 October 1978, pp. 424 . 99. Ming K Chan, "The Politics of Hong Kong's Imperfect Transition: Dimensions of the China Factor", in Ming K. Chan (ed.), The Challenge of Hong Kong's Reintegration with China (Hong Kong: Hong Kong University Press, 1997), p. 21. 100. Under Annex I, Section I, Sino-BritishJoint Declaration on the Question of Hong Kong. Sir Philip Haddon-Cave, Chief Secretary in a private speech, "The Practice of Politics in Hong Kong" delivered 14June 1985. Haddon-Cave was regarded by many British diplomats as a particular thorn in their side because of his advocacy of Hong Kong's right to monitor the Sino-British negotiations. 101. On the strains that arose, see Brian Hook, "Hong Kong Under Chinese Sovereignty: A Preliminary Assessment", in Robert Ash et al. (eds), Hong Kong in Transition. The Handover Years (London: Macmillan Press Ltd, 2000), p. 102; Lau Siu-kai, "The Making ofthe Electoral System", in Kuan Hsin-chi et al. (eds), Power Transfer and Electoral Politics. The First Legislative Election in the Hong Kong Special Administrative Region (Hong Kong: Chinese University Press, 1999), pp. 5-6. 102. Hong Kong Transition Project, Winter ofDespair. Confidence and Legitimacy in Crisis in the Hong Kong SAR (December 2001) (Hong Kong: Hong Kong Baptist University, 2002), pp. 64-5. CHAPTER IV 1. James T. H. Tang and Frank Ching, "The MacLehose-Youde Years: Balancing the Three-Legged Stool', 1971-86", in Ming K Chan (ed.), Precarious Balance. Hong Kong Between China and Britain, 1842-1992 (Hong Kong: Hong Kong University Press, 1994), p. 156; Ian Scott, Political Change and the Crisis ofLegitimacy in Hong Kong (London: Hurst & Company, 1989), pp. 284-98. 2. Andrew]. Whitfield, Hong Kong, Empire and the Anglo-American Alliance at War, 19411945 (Hong Kong: Hong Kong University Press, 2001), pp. 18-24. 3. These exercises and the statistical and other information available from Hong Kong government sources on the United Kingdom's economic benefits from Hong Kong are discussed in the "Statistical Appendix". 4. Business Monitor, MA4 1995 (odi_uk.95.wk4). 5. James T. H. Tang, "World War to Cold War: Hong Kong's Future and AngloChinese Interactions, 1941-55", in Chan (ed.), Precarious Balance. Hong Kong Between China and Britain, 1842-1992, p. 125. 6. Sir Alec Douglas-Home, (London Public Records Office) CAB 128/50/51 p. 6. His comments suggest that Chinese officials had implied negotiations might not be smooth sailing. 7. David Owen, Time to Declare (London: Penguin Books, 1992), p. 405-8; Geoffrey Howe, Conflict ofLoyalty (London: Macmillan, 1994), p. 362. 8. Alexander Michie, The Englishman in China During the Victorian Era (Edinburgh: William Blackwood and Sons, 1900), Vol. 1, p. 276. 9. For numerous examples, see P. D. Coates, The China Consuls. British Consular Officers, 1843-1943 (Hong Kong: Oxford University Press, 1988). Also Margery Perham, Lugard: The Years ofAuthority 1898-1945 (London: Collins, 1960), pp. 304-5, 369. 256 Notes to Pages 74-77 10. An important early clash between London and Hong Kong officials is finely analysed by Daniel Y K. Kwan, Marxist Intellectuals and the Chinese Labor Movement. A Study of Deng Zhongxia (1894-1933) (Seattle: University of Washington Press, 1997), pp. 201-4. 11. Sir Percy Cradock recorded in Foreign Affairs Committee, Relations Between the United Kingdom and China in the Period up to and Beyond 1997 (London: HMSO, 1994), First Report, Vol. II, p. 120. 12. Percy Cradock, "Losing the Plot in Hong Kong", Prospect (April 1997), p. 22. 13. e.g., Ming K. Chan, "Introduction: Hong Kong's Precarious Balance - 150 Years in an Historic Triangle", in Chan (ed.), Precarious Balance. Hong Kong Between China and Britain, 1842-1992, p. 5. 14. A good review of these issues is provided by Zhong-ping Feng, The British Government's Policy in China 1949-1950 (Keele: Ryburn Publishing, 1994), pp. 527 , 122-34. 15. Liu Xiaohong, China's Ambassadors: The Rise ofDiplomatic Professionalism Since 1949 (Seattle: University of Washington Press, 2001), pp. 10-1. 16. Grantham recounts his response to the new regime in China and the political problems it caused him in Alexander Grantham, Via Ports. From Hong Kong to Hong Kong (Hong Kong: Hong Kong University Press, 1965), Chapter 7. 17. See the positive assessment of Grantham in Steve Tsang, "Strategy for Survival: The Cold War and Hong Kong's Policy Towards Guomindang and Chinese Communist Activities in the 1950s", Journal ofImperial and Commonwealth History, Vol. 25, No.2 (May 1997), pp. 296, 298, 301-2, 307-10. 18. Grantham, Via Ports. From Hong Kong to Hong Kong, p. 183. 19. e.g., New China News Agency (NCNA hereafter), 26-8 August 1958. 20. The Far Eastern Economic Review (FEER hereafter) provided useful reporting on these developments: Hsueh Shou-sheng, "The Controversy Over Territorial Waters", 24 April 1958; "Hongkong Notes and Reports", 21 August 1958; "Peking's Threat to Fleet's Traditional Grounds", 4 December 1958; A. E. Thomas, "World of East Asia. A Review ofInternational Affairs During Year 1958", 29January 1959. 21. The sophistication of the Hong Kong government's analysis of the Mainland scene during an extremely complex and troubled period in the Chinese Communist Party's history can be judged from a secret report, "Chinese Economic Competition", Hong Kong Public Records Office HKRS270-5-44, "Commercial and Industrial Development - Major Policy" (30), 18 December 1958. 22. Roderick MacFarquhar provides a perceptive overview of how the economic and ideological crisis affected China's relations with other states in The Origins of the Cultural Revolution. 2: The Great Leap Forward 1958-1960 (Oxford: Oxford University Press, 1983), Chapter 11, pp. 270-2. 23. Steve Tsang, A Modern History ofHong Kong (Hong Kong: Hong Kong University Press, 2004), p. 156. 24. The contrasts between the Mainland and Hong Kong are well described in William Heaton, "Maoist Revolutionary Strategy and Modern Colonialism: The Cultural Revolution in Hong Kong", Asian Survey, Vol. X, No.9 (September 1970). 25. The leadership's misgivings were well-known during this period. Colina MacDougall, "Through China's Eyes", FEER, 6-12 August 1967; Revolutionary Masses of 1st Bureau, "Ta-tzu-pao Che-pien", in Survey ofChina Mainland Press, No. 4273, 11 September 1968, pp. 3-5. See also the recollections of a cadre in Kam Notes to Pages 77-80 257 Yiu-yu, "Decision-Making and Implementation of Policy Toward Hong Kong", in Carol Lee Hamrin and Suisheng Zhao (eds), Decision-Making in Deng's China. Perspectives From Insiders (Armonk: M. E. Sharpe, 1995), p. 106. 26. Commerce and Industry Department, "Memorandum for the Trade and Industry Advisory Board. Hong Kong's Trade With China" (T.I.A.B. Inf/58/67, 11 November 1967, mimeo), pp. 5, 7. A detailed analysis of China's efforts to maintain supplies to Hong Kong was recorded in the original draft of this document, pp. 12-5. 27. For the main propaganda line, see People's Daily (PD hereafter), 5 July 1967. Important examples of the restraint embedded in the vitriolic propaganda can be found in NCNA, 15 May and 24June 1967. 28. Report on the Riots in Kowloon and Tsuen Wan ... from the Governor ofHong Kong to the Secretary of State for the Colonies (Hong Kong: Government Printer, 1956), pp. 44, 54. 29. State Statistical Bureau, Statistical Yearbook of China 1983 (Hong Kong: Economic Information & Agency, 1983), pp. 22, 18, 420. 30. Greg O'Leary, The Shaping of Chinese Foreign Policy (London: Croom Helm, 1980), pp. 231-2. 31. Tsang, A Modern History ofHong Kong, p. 188. 32. Qi Penyu, Member of the Cultural Revolution Group under the CCPCC, NCNA, 5 June 1967. 33. Percy Cradock, Experiences of China (London: John Murray, 1994), pp. 61-8,7480 ; Katie Hickman, Daughters ofBritannia. The Lives and Times ofDiplomatic Wives (London: HarperCollins Publishers, 1999), pp. 252-3; Derek Davies, "Twisting the Lion's Tails", FEER, 28 July-3 August 1968; P. H. M.Jones, "Down, Down, Down ...", FEER, 29 September-5 October 1968. 34. Kenneth Topley, "British Rule in Hong Kong: From 1840 to the Sino-British Declaration of 1984", in Albert H. Vee (ed.) Whither Hong Kong: China's Shadow or Visionary Gleam? (Lanham: University Press of America, 1999), p. 145. 35. Sir Percy Cradock gives barely a hint of any tensions between the diplomats and colonial officials in his account, focusing instead on differences within the Foreign Office in Experiences of China, pp. 72-81. Rather fuller details of this dispute were reported, though discreetly enough, by Derek Davies in FEER, 28 July-3 August 1968 and Financial Times, 12January 1970 and 1 February 1971. See also The Times, 19 January 1972. 36. The sweeping nature of the controls on the statute book is recounted in Richard Cullen, "Freedom of the Press and the Rule of Law", in Steve Tsang (ed.), Judicial Independence and the Rule ofLaw in Hong Kong (Hong Kong: Hong Kong University Press, 2001), pp. 161-3. 37. Yash Ghai, "Freedom of Expression", in Raymond Wacks (ed.), Human Rights in Hong Kong (Hong Kong: Oxford University Press, 1992), pp. 370-8. 38. For this 1979 example of legal suppression of normal constitutional rights, see Roda Mushkat, "Freedom of Association and Assembly", in Raymond Wacks (ed.), Civil Liberties in Hong Kong (Hong Kong: Oxford University Press, 1988), pp. 159, 180 f.n. 27. 39. Percy Cradock, Prospect (April 1997), pp. 20-1. 40. When facing politically-motivated criminal charges, these organisations often, but not invariably, defended themselves before the courts, most notably in the sedition case, Fei Yi-ming and Lee Tsung Ying v. R. (1952) 36 H.K.L.R. 133. 258 Notes to Pages 80-82 41. Dr Francis K. Pan, "Whither Hongkong?", FEER, 27 February 1958. 42. The most serious incidents occurred in the 1950s, partly because deportations ceased to be practicable after 1955. "Hongkong Government Reports", FEER, 19 June 1958. See also David Clayton, Imperialism Revisited. Political and Economic Relations Between Britain and China, 1950-54 (London: Macmillan Press Ltd, 1997), p. 117. A total of six publications was prosecuted, three in 1952 and a further three in 1967 according to Chan Yuen-ying, "The English-Language Media in Hong Kong", in Kingsley Bolton (ed.), Hong Kong English. Autonomy and Creativity (Hong Kong: Hong Kong University Press, 2002), p. 110. 43. For an excellent review of the Chinese leadership's determination to preserve the economic benefits generated by Hong Kong, see Lawrence C. Reardon, The Reluctant Dragon. Crisis Cycles in Chinese Foreign Economic Policy (Hong Kong: Hong Kong University Press, 2002), pp. 79-83, 144-8. 44. Kevin P. Lane, Sovereignty and the Status Quo. The Historical Roots of China's Hong Kong Policy (Boulder: Westview, 1990), pp. 85-6. 45. A precedent had been set under Sir Robert Black when three agreements were made between 1960 and 1964 to purchase desperately-needed fresh water on a regular basis from Guangdong province. Hong Kong. Reportfor the Year 1960 (Hong Kong: Government Printer, 1961), chapter 1; Hong Kong. Reportfor the Year 1963 (Hong Kong: Government Printer, 1964), pp. 240-6; Hong Kong. Report for the Year 1964 (Hong Kong: Government Printer, 1965), pp. 170-1. 46. Three were politically sensitive. The principal sources of information on the agreements are Hong Kong 1974. Reportfor the Year 1973 (Hong Kong: Government Printer, 1974), p. 121; Hong Kong 1975. Report for the Year 1974 (Hong Kong: Government Printer, 1975), pp. 124-5; Hong Kong 1981. A Review of 1980 (Hong Kong: Government Printer, 1981), pp. 145-6; Sir Alan Donald, Foreign Affairs Committee, Relations Between the United Kingdom and China in the Period up to and Beyond 1997, p. 136. 47. Robert Cottrell, The End of Hong Kong: The Secret Diplomacy of Imperial Retreat (London: John Murray, 1993), pp. 48-57; Cradock, Experiences of China, pp. 1648 . 48. Steve Tsang, Hong Kong. An Appointment With China (London: 1. B. Tauris, 1997), p. 87. He provides a sympathetic overview of the visit at pp. 88-90. 49. Robin McLaren, Britain's Record in Hong Kong (London: Royal Institute of International Affairs, 1997), pp. 12-3. 50. Sze-yuen Chung, Hong Kong's Journey to Reunification. Memoirs of Sze-yuen Chung (Hong Kong: Chinese University Press, 2001), pp. 29-32. 51. Leo Goodstadt, "The Chinese Puzzle ofl997", Euromoney (August 1981), pp. 1106 . 52. Cottrell, The End ofHong Kong: The Secret Diplomacy ofImperial Retreat, pp. 41-2. 53. Chung, Hong Kong'sJourney to Reunification. Memoirs ofSze-yuen Chung, p. 30. London felt under no obligation to heed Hong Kong's views. Cradock, Experiences ofChina, pp.164-6. 54. Mark Roberti, The Fall of Hong Kong. China's Triumph and Britain's Betrayal (New York: John Wiley & Sons, Inc., 1994), pp. 18-20,24. 55. Cradock is frank about Youde's willingness to reject the London line in Experiences of China, p. 196. 56. See, for example, his statement in the Legislative Council, Hong Kong Hansard, 6 October 1982, pp. 33-4. Notes to Pages 82-86 259 57. Chung, Hong Kong's Journey to Reunification. Memoirs of Sze-yuen Chung, pp. 56-62. 58. Peter Wesley-Smith, Constitutional & Administrative Law in Hong Kong. Text and Materials (Hong Kong: China and Hong Kong Law Studies, 1987), Vol. I, p. 225; NihalJayawickrama, "Public Law", in Raymond Wacks (ed.), The Law in Hong Kong 1969-1989 (Hong Kong: Oxford University Press, 1989), p. 99; Emily Lau, "Hongkong: More Press Freedom: The Government Drops Some Restrictive Media Laws", FEER, 8 January 1987; Consultative Document. Redress of Grievances (Hong Kong: Government Printer, 1986), pp. 6-7. 59. Even after the signing of theJoint Declaration, Youde was ready to expound these apprehensions in private, together with considerable cynicism about the British and American political systems. Personal interview, 26June 1986. 60. Margaret (later Baroness) Thatcher voiced this opinion in December 1983 at a meeting of OD(K), the Cabinet Committee that dealt with Hong Kong. 61. As can be seen from Green Paper: The Further Development ofRepresentative Government in Hong Kong (Hong Kong: Government Printer, 1984). 62. Lord Howe stated: "The idea of elections was only put in place within the last month of negotiations." Foreign Affairs Committee, Hong Kong. Minutes ofEvidence Wednesday 22 March 1989 (London: HMSO, 1989), pp. 24. 63. Report of the Assessment Office. Arrangements for Testing the Acceptability in Hong Kong ofthe Draft Agreement on the Future ofthe Territory (Hong Kong: Government Printer, 1984),pp.17-8. 64. A Draft Agreement ... on the Future ofHong Kong (Cmd 9352/1984), p. 7. 65. Chan Kam-chuen, Hong Kong Hansard, 16 October 1984, p. 111. 66. Brian Hook, "From Repossession to Retrocession: British Policy Towards Hong Kong 1945-1997" in Li Pang-kwong (ed.), Political Order and Power Transition in Hong Kong (Hong Kong: Chinese University Press, 1997), pp. 20-1. 67. Deng Xiaoping, On the Question of Hong Kong (Hong Kong: New Horizon Press, 1993), pp. 55-6. 68. Deng, On the Question ofHong Kong, p. 56. 69. Jonathan Dimbleby, The Last Governor. Chris Patten & the Handover of Hong Kong (London: Little Brown & Co, 1997), pp. 439-42. 70. Norman Miners, "Moves Towards Representative Government 1984-1988", in Kathleen Cheek-Milby and Miron Mushkat (eds), Hong Kong. The Challenge of Transformation (Hong Kong: Centre of Asian Studies, 1989), p. 29; Ian Scott, "Introduction", in Ian Scott (ed.), Institutional Change and the Political Transition in Hong Kong (London: Macmillan Press Ltd, 1998), p. 14. 71. Tsang, Hong Kong. An Appointment With China, pp. 170-1. 72. Cradock, Experiences of China, pp. 231-2. 73. State Statistical Bureau, China Statistical Yearbook 1991 (Beijing: Chinese Statistical Information and Consultancy Service Center, 1991), p. 568; Yun-Wing Sung, The China-Hong Kong Connection. The Key to China's Open-Door Policy (Cambridge: Cambridge University Press, 1991), pp. 99-103, 173-5. 74. Roda Mushkat, "The Joint Declaration and the CFAAgreement", Hong Kong Law Journal, Vol. 26 (1996), pp. 277-81. 75. Ian Scott, "An Overview of the Hong Kong Legislative Council Elections of 1991", in Rowena Y F. Kwok et al.(eds), Votes Without Power: The Hong Kong Legislative Council Elections 1991 (Hong Kong: Hong Kong University Press, 1992), p. 17. This author also draws attention to civil liberties as part of the background to the elections. 260 Notes to Pages 86-89 76. Michael Yahuda, Hong Kong. China 5 Challenge (London: Routledge, 1996), pp. 724 . 77. Frank Ching, "The Implementation of the Sino-British Joint Declaration", in Joseph Y S. Cheng and Paul C. K Kwong (eds), The Other Hong Kong Report 1992 (Hong Kong: Chinese University Press, 1992), pp. 90-2. 78. Percy Cradock, In Pursuit ofBritish Interests. Reflections on Foreign Policy Under Margaret Thatcher and John Major (London: John Murray, 1997), p. 204. 79. Chris Patten, East and West. The Last Governor ofHong Kong on Power, Freedom and the Future (London: Macmillan, 1998), pp. 106-7. 80. Dimbleby, The Last Governor. Chris Patten & the Handover ofHong Kong, pp. 140-3. 81. Patten, East and West. The Last Governor ofHong Kong on Power, Freedom and the Future, p.66. 82. Dimbleby, The Last Governor. Chris Patten & the Handover ofHong Kong, p. 163. 83. Alan Paul recounting his experience of the Sino-BritishJoint Liaison Group from 1991 to 1999, South China Morning Post, 16 December 1999. 84. Editorial, Wen Wei Pao, 8 July 1995. 85. The claim, for example, that the work of the Sino-BritishJoint Liaison Group was disrupted in 1993-94. (See Christine Loh, "The Implementation of the Sino-British Joint Declaration", in Donald H. McMillen and Man Si-wei (eds), The Other Hong Kong Report 1994 (Hong Kong: Chinese University Press, 1994), p. 71). In fact, the agreements reached at that forum increased during this period. 86. Details of the range of these agreements and the forums in which they were concluded can be found in a variety of sources, including Foreign Mfairs Committee, Hong Kong. Minutes of Evidence Wednesday 22 March 1989 (London: HMSO, 1989), pp. 11-2; Achievements oftheJoint Liaison Group and Its Sub-group on International Rights and Obligations (1985-May 1990) (Hong Kong: Government Printer, 1990); Anson Chan, Chief Secretary, "A Commitment to Progress", Government Information Services (GIS, hereafter), 4 October 1996; Hong Kong 1997. A Review of 1996 (Hong Kong: GIS, 1997), pp. 37-41; Roda Mushkat, One Country, Two International Legal Personalities. The Case ofHong Kong (Hong Kong: Hong Kong University Press, 1997), pp. 28-9. 87. Roger Buckley, Hong Kong: The Road to 1997 (Cambridge: Cambridge University Press, 1997), p. 176; Alvin So, "The Tiananmen Incident, Patten's Electoral Reforms, and the Roots of Contested Democracy in Hong Kong", in Ming K Chan (ed.), The Challenge of Hong Kongs Reintegration With China (Hong Kong: Hong Kong University Press, 1997), pp. 72-3. 88. Yahuda, Hong Kong: China's Challenge, pp. 94-7. 89. See the revealing comments of Hugh Davies, Senior British Representative,Joint Liaison Group in Bruce Herschensohn (ed.), Hong Kong at the Handover (Lanham: Lexington Books, 2000), pp. 134-5. 90. Examples of how these factors created opposition within the Chinese government are provided in Leo F. Goodstadt, "Prospects for the Rule of Law: The Political Dimension", in Tsang (ed.), Judicial Independence and the RulR ofLaw in Hong Kong, pp.188-9. 91. So in Chan (ed.), The Challenge ofHong Kongs Reintegration With China, pp. 65-6. 92. Percy Cradock, Experiences of China (London: John Murray, 1999), p. 298. 93. In this case, the danger offinancial meltdown. Joseph Yam, Chief Executive Hong Kong Monetary Authority, GIS, 2 June 1998. Notes to Pages 90-92 261 94. The government's estimates of the potential influx, together with its projections of the dire economic and social costs are summarized in GIS, 6 May 1999. Officials made a spirited defence of their statistics. e.g., GIS, 5 May and 19 October 1999. 95. See, for example, the observations of Tung Chee Hwa, Chief Executive, GIS, 6, IS and 26 May 1999. 96. Particularly, a long, harshly-worded rejection of the Court of Final Appeal's decision by Mainland legal experts carried as an "Official Statement" by NCNA, 6 February 1999. 97. For a thorough review of the controversy and its implications, see Johannes M. M. Chan et aL (eds), Hong Kong's Constitutional Debate. Conflict Over Interpretation (Hong Kong: Hong Kong University Press, 2000). 9S. Under this article, Hong Kong was to "enact laws on its own to prohibit any act of treason, secession, sedition, subversion against the Central People's Government (CPG), or theft of state secrets, to prohibit foreign political organizations or bodies from conducting political activities in the Region, and to prohibit political organizations or bodies of the Region from establishing ties with foreign political organizations or bodies". The government's proposals were set out in Proposals to Implement Article 23 of the Basic Law. Consultation Document (Security Branch, September 2002). 99. The legislators' concerns were summed up in Panel on Security and Panel on Administration ofJustice and Legal Services, Summary ofConcerns and Queries Raised by Members at the Joint Meeting on 26 September 2002 (LC Paper No. CB(2)S6/0203 (03), 12 October 2002). The Bar Association's reservations had already been expressed in its press release, "Hong Kong Bar Association's View on Legislations Under Article 23 of the Basic Law", 27 July 2002. 100. Notably the intervention of Deputy Premier Qian Qichen. See Regina Ip, Secretary for Security, GIS, 26 October 2002. 101. See China Daily (CD hereafter), Ta Kung Pao (TPK hereafter) and Hong Kong Economic Journal and their editions of 2 July 2003. 102. See Prime Minister Wen's comments, PD, 20 July 2003. 103. With personal interventions by President Hu and Prime Minister Wen (PD, 20July 2003) and Politburo Member Jia Qingliu (PD, 22 August 2003). 104. For the details, see "Mainland/Hong Kong Closer Economic Partnership Arrangement ("CEPA")", GIS, 4 July 2003 and "Develop New Frontiers in HK/ Guangdong Co-operation", GIS, 5 August 2003. 105. Tung Chee Hwa, Chief Executive, GIS, 1 June 2004. 106. See the comments of Donald Tsang Yam-kuen, Chief Secretary, on potential benefits. CD Hong Kong edition, 20 July 2004. 107. GIS, 25 July 2001; TKP, 26July 2001. lOS. CD Hong Kong edition, 25 October 2001; PD, 23 September 2000. Media attention also focused on Nansha as the location chosen by prominent business personality and Vice-Chairman of the Chinese People's Political Consultative Conference, Henry Fok Ying-tung, to invest the equivalent of US$5 billion from the early 19S0s. CD Hong Kong edition, 30 August 2001. 109. Donald Tsang Yam-kuen, GIS, 23 May 2001. 110. This crisis is traced in detail by Ahmed Shafiqul Huque and Grace O. M. Lee, Managing Public Services. Crises and Lessons from Hong Kong (Aldershot: Ashgate, 2000), Chapter 3. 262 Notes to Pages 92-94 Ill. Lau Siu-kai, Head, Central Policy Unit, Wen Wei Pao, 5 June 2003. 112. The pressures and cross-border political problems are summarized in Christine Loh, "The Politics of SARS: The "VHO, Hong Kong and Mainland China", in Christine Loh and Civil Exchange (eds), At the Epicentre: Hong Kong and the SARS Outbreak (Hong Kong: Hong Kong University Press, 2004), pp. 149-57. 113. See, for example, Yeoh Eng-kiong, Secretary for Health, Welfare and Food, GIS, 16,21 and 22 March 2003; Arthur Li, Secretary for Education and Manpower, GIS, 23 March 2003; Tung Chee Hwa, GIS, 27 March 2003; Ming Pao, 12 February 2003; Oriental Daily, 27 March 2003. 114. Report ofthe Hospital Authority Review Panel on the SARS Outbreak September 2003 (Hong Kong: Hospital Authority, 2003), pp. 20, 104. For a summary of serious administrative failures, see pp. 16-19. 115. Report of the Select Committee to Inquire Into the Handling ofthe Severe Acute Respiratory Syndrome Outbreak by the Government and the Hospital Authority (Hong Kong: Legislative Council,July 2004), pp. 29-35, 249-54. 116. The Chinese government stated: "With regard to election of all members of the Legislative Council of the Hong Kong SAR by universal suffrage after 2007 ... it is a question to be decided by the Hong Kong SAR and it needs no guarantee by the Chinese Government." Ministry of Foreign Affairs, Facts About a Few Important Aspects of Sino-British Talks on 1994/95 Electoral Arrangements in Hong Kong (Hong Kong: Joint Publishing (H.K.) Co., Ltd., 1994), p. 34. This historical reference was recalled by Frank Ching, South China Morning Post, 20 January 2004. His interpretation was rejected by Shao Tianren, Ministry of Foreign Affairs Counselor, NCNA, 7 February 2004. 117. In early 2003, officials were being extremely guarded about the timetable for introducing electoral reforms. Stephen Lam Sui-lung, Secretary for Constitutional Affairs, Hong Kong Hansard, 17 January 2003, pp. 3073-4; Panel on Constitutional Affairs Minutes of special meeting held on Wednesday, 15 January 2003 ... (5 March 2003, LC Paper No. CB(2)1363/02-03), pp. 6-7; Panel on Constitutional Affairs Minutes of meeting held on Monday, 19 May 2003 ... (13 June 2003, LC Paper No. CB(2) 2464/02-03), p. 3. 118. State Councillor TangJiaxuan, CD, 16 September 2003; Prime Minister WenJiabao, TKP, 9 October 2003. 119. Tung Chee Hwa, The 2004 Policy Address. Seizing Opportunities for Development, Promoting People-Based Governance (Hong Kong: HKSAR Government, 2004), p. 28. 120. Donald Tsang Yam-kuen, Chief Secretary, GIS, 7 January 2004. 121. Stephen Lam Sui-lung, GIS, 15 November 2003. 122. PD, 14January 2004. 123. NCNA, 19 and 20 February 2004; PD, 19 February 2004. 124. Significantly, the extensive media reporting of this possibility was noted but not rejected categorically in CD Hong Kong edition, 18 February 2004. 125. Hong Kong Economic Journal, 11 and 12 February 2004. 126. As Donald Tsang Yam-kuen made clear at a press conference. GIS, 7January 2004. 127. Legislative Council Panel on Constitutional Affairs, Task Force on Constitutional Development (Constitutional Affairs Branch, 14January 2004), pp. 5-6,7. 128. Opposition to national security legislation was highlighted by a list of offences that included "hassling the SAR government and the central authorities ... organiz ling] or participat[ing] in activities against the central government." NCNA, 20 February 2004. Notes to Pages 94-98 263 129. PD, 20 February 2004. 130. The Standing Committee's decision and its reasoning were published in NCNA, 26 April 2004. 131. Qiao Xiaoyang, Deputy Secretary-General of the National People's Congress Standing Committee, PD, 9 April 2004. Details of contacts with Beijing over the decision were disclosed by Stephen Lam, Secretary for Constitutional Mfairs, GIS, 2June 2004. 132. GIS, 7 July 2004. 133. From the official account, it seems that a breach of the Joint Declaration was not even raised during "a friendly and open exchange of views on issues relating to Hong Kong" at the London meeting between the Chinese and British Prime Ministers in May 2004. The British statements and official contacts with the Chinese government on this issue are set out in Six-monthly Report on Hong KongJanuaryJune 2004 (Cm 6292/2004), especially pp. iii, 9,12,13. 134. See, for example, the press release on a British Ministerial visit to China in July 2004 at: www.britishconsulate.org.hk/english/press/pr040728.htm. In the middle of a bitter public dispute over the political background to the resignation of three talk-show hosts from a local radio station, the official Mainland press were able to quote the British Consulate General in Hong Kong as dismissing fears about threats to freedom of the press. CD Hong Kong edition, 4 August 2004. Supporters of Beijing's policies towards Hong Kong saw this row as a "pro-democracy plot", Wen Wei Pao, 31 July 2004. 135. Li Pang-kwong, Hong Kongfrvm Britain to China. Political cleavages, electoral dynamics and institutional changes (Aldershot: Ashgate, 2000), p. 233. 136. Chinese leaders' belief that Hong Kong showed unacceptable ingratitude for the Mainland's economic assistance in refusing to show more respect for their views on political reforms and national security legislation was apparent in PD, 23 February 2004. CHAPTER V 1. John Griffiths, Attorney General, "The Constitution of Hong Kong: The Hub of the Wheel of State", in Hong Kong 1983. A Review of1982 (Hong Kong: Government Printer), pp. 5, 14-5. 2. Sir Philip Haddon-Cave, Chief Secretary, Government Information Services (GIS hereafter), 1 February 1982. He was echoing sentiments expressed in much the same language forty years earlier in Lennox A. Mills, British Rule in Eastern Asia. A Study ofContemporary Government and Economic Development in British Malaya and Hong Kong (London: Oxford University Press, 1942), pp. 380-3. 3. Carl T. Smith, "The English-educated Chinese Elite in Nineteenth-Century Hong Kong", in David Faure (ed.), Hong Kong: A Reader in Social History (Hong Kong: Oxford University Press, 2003), pp. 268-9. 4. A concise presentation of this widespread view of Hong Kong's stability under British rule can be found in Ii Pang-kwong, Hong Kongfrom Britain to China. Political cleavages, electoral dynamics and institutional changes (Aldershot: Ashgate, 2000), pp, 28-30. 5. Except where otherwise indicated, the discussion of the elite in the nineteenth century follows closely Elizabeth Sinn, Power and Charity. A Chinese Merchant Elite in Colonial Hong Kong (Hong Kong: Hong Kong University Press, new ed. 2003). 264 Notes to Pages 99-102 6. Smith in Faure (ed.), Hong Kong: A Reader in Social History, p. 268. 7. Christopher Munn, "The Criminal Trial Under Early Colonial Rule", in Tak-Wing Ngo (ed.), Hong Kong's History. State and Society Under Colonial Rule (London: Routledge, 1999), pp. 65-6. 8. Jung-fang Tsai, Hong Kong in Chinese History. Community and Social Unrest in the British Colony, 1842-1913 (New York: Columbia University Press, 1993), pp. 168-70, 2913 . 9. Three of them occurred before World War II. Michael E. DeGolyer, "Public Opinion on Hong Kong's Transition", in Ian Scott (ed.), Institutional Change and the Political Transition in Hong Kong (London: Macmillan Press Ltd, 1998), pp. 323 . DeGolyer omits the 1956 riots from his count. But see Benjamin K. P. Leung, '''Class' and 'Class Formation' in Hong Kong Studies", in Lau Siu-kai et al. (eds), Inequalities and Development. Social Stratification in Chinese Societies (Hong Kong: Hong Kong Institute of Asia-Pacific Studies, 1994), p. 57. 10. Christopher Munn, Anglo-China. Chinese People and British Rule in Hong Kong, 18411880 (Richmond: Curzon, 2001), pp. 375, 377. 11. Margery Perham, Lugard: The Years ofAuthority 1898-1945 (London: Collins, 1960), p.303. 12. Ng Lun Ngai-ha, Interactions ofEast and West. Development ofPublic Education in Early Hong Kong (Hong Kong: Chinese University Press, 1984), pp. 108-9, 159. 13. Mills, British Rule in Eastern Asia. A Study of Contemporary Government and Economic Development in British Malaya and Hong Kong, pp. 463-4. 14. Chan Lau Kit-ching, China, Britain and Hong Kong 1895-1945 (Hong Kong: Chinese University Press, 1990), pp. 171-2, 184, 189-93, 201-4. 15. The recommendation was not implemented for another half century. Report ofthe Housing Commission (Legislative Council, Sessional Paper 10/1923), pp. 120-1. 16. Henry Lethbridge, Hong Kong: Stability and Change. A Collection of Essays (Hong Kong: Oxford University Press, 1978), pp. 20-1,25; David Faure, "Reflections on Being Chinese in Hong Kong" inJudith M. Brown and Rosemary Foot (eds), Hong Kong's Transitions, 1842-1997 (London: Macmillan Press Ltd, 1997), p. 110. 17. See, for example, the heroic individuals listed in Selwyn Selwyn-Clarke, Footprints. The Memoirs ofSir Selwyn Selwyn-Clarke (Hong Kong: Sino-American Publishing Co., 1975),pp. 79,86-7, 102. 18. G. B. Endacott, Hong Kong Eclipse (Hong Kong: Oxford University Press, 1978), pp. 26-7, 114. But note the anti-colonial allegations recorded by Anthony Sweeting, Education in Hong Kong Pre-1841 to 1941: Fact & Opinion. Materials for a History of Education in Hong Kong (Hong Kong: Hong Kong University Press, 1990), p. 343. 19. Philip Snow, The Fall ofHong Kong. Britain, China and theJapanese Occupation (New Haven: Yale University Press, 2003), pp. 107-18. 20. Endacott, Hong Kong Eclipse pp. 244, 250; Oliver Lindsay, At the Going Down of the Sun. Hong Kong and South-East Asia 1941-45 (London: Hamish Hamilton, 1981), pp. 240-1. For a detailed and sympathetic analysis of the dilemmas of collaboration, see Henry J. Lethbridge, "Hong Kong Under Japanese Occupation: Changes in Social Structure", in 1. C.Jarvie (ed.), Hong Kong: A Society in Transition. Contributions to the Study ofHong Kong Society (London: Routledge & Kegan Paul, 1969). 21. Snow, The Fall ofHong Kong. Britain, China and theJapanese Occupation, pp. 278-84. Even during the Japanese Occupation, British officials chose to view their former partners as unwilling collaborators with the enemy. See A. D. Blackburn, "Hong Notes to Pages 102-106 265 Kong, December 1941-July 1942",Journal ofthe Hong Kong Branch ofthe RnyalAsiatic Society, Vol. 29 (1989), p. 86. 22. The full text of the memorandum, the history of its survival in the Japanese internment camp, and its reception by the post-war colonial administration are recorded in Hong Kong Public Records Office HKRS41-1-1797, "Social Welfare in the Colony - Memorandum on ... by the Committee of the Social Service Centre of the Churches - Stanley, June 1943". 23. Ian Scott, "Introduction" in Scott (ed.), Institutional Change and the Political Transition in Hong Kong, p. 5 and Political Change and the Crisis ofLegitimacy in Hong Kong (London: Hurst & Company, 1989), p. 328. 24. Jermain T. M. Lam, The Political Dynamics ofHong Kong Under The Chinese Sovereignty (Huntington: Nova Science Publishers, Inc., 2000), p. 94. 25. Faure, "The Common People of Hong Kong" and "In Britain's Footsteps: The Colonial Heritage" in Faure (ed.), Hong Kong: A Reader in Social History, pp. 509, 660-1,665. 26. Report ofthe Housing Commission 1935 (Hong Kong: Noronha & Co., 1938), p. 271. 27. K. M. A. Barnett, Hong Kong. Report on the 1961 Census (Hong Kong: Government Printer, n.d.), Vol. III, pp. CXIII-IV. 28. Siu-kai Lau, Society and Politics in Hong Kong (Hong Kong: Chinese University Press, 1982), pp. 130-42. 29. CatherineJones, Promoting Prosperity. The Hong Kong Way ofSocial Policy (Hong Kong: Chinese University Press, 1990), p. 194. 30. The details are summarized in Raymond K. H. Chan, Welfare in Newly-Industrialised Society. The Construction ofthe Welfare State in Hong Kong (Aldershot: Avebury, 1996), chapter 8. 31. Tai-lok Lui, "Pressure Group Politics in Hong Kong", in Joseph Y S. Cheng (ed.), Political Participation in Hong Kong. Theoretical Issues and Historical Legacy (Hong Kong: City University of Hong Kong Press, 1999), pp. 150-3. 32. Lau Siu-kai and Kuan Hsin-chi, The Ethos of the Hong Kong Chinese (Hong Kong: Chinese University Press, 1988), p. 105. 33. Sir Murray MacLehose, Governor, Hong Kong Hansard, 6 October 1976, pp. 5-6, 28. 34. As legislators openly admitted. See, for example, Hilton Cheong-leen and Peter C. Wong, Hong Kong Hansard, 27 and 28 October 1976, pp. 93, 141-2. 35. A fine account of political developments in this period and of the business elite's role can be found in Alvin Y So, Hong Kong's EmbattlRd Democracy. A Societal Analysis (Baltimore: John Hopkins University Press, 1999), pp. 76-7, 105-6, 162 in particular. 36. On Sir Kan Yuet-keung's contributions in 1967 and 1977, see Denis Bray, Hong Kong Metamorphosis (Hong Kong: Hong Kong University Press, 2001), p. 130. 37. Joseph Y S. Cheng, "Political Participation in Hong Kong: Trends in the Mid1990s ", in Warren 1. Cohen and Li Zhao (eds), Hong Kong Under Chinese Rule. The Economic and Political Implications of Reversion (Cambridge: Cambridge University Press, 1997), p. 172. 38. Lau and Kuan, The Ethos of the Hong Kong Chinese, p. 105-6. 39. Thomas W. P. Wong, "Economic Culture and Distributive Justice", in Lau Siu-kai et al. (eds), Indicators of Social Development: Hong Kong 1993 (Hong Kong: Hong Kong Institute of Asia-Pacific Studies, 1995), pp. 378-9. 266 Notes to Pages 106-109 40. Robert Cottrell, The End of Hong Kong: The Secret Diplomacy of Imperial Retreat (London: John Murray, 1993), p.156. 41. On the roles of Allen Lee and Lydia (later Baroness) Dunn, the elite's spokespersons, see David Wen-wei Chang and Richard Y. Chuang, The Politics of Hong Kong's Reversion to China (Basingstoke: Macmillan Press Ltd, 1998), pp. 49, 75-6. 42. For example, Baroness Dunn, "The Way We Are", in Hong Kong 1996. A Review of 1995 and A Pictorial Review ofthe Past Fijiy Year.s (Hong Kong: Government Printer, 1996), pp. 2-4; Sir S. Y. Chung, "Industrial Revolution", in Sally Blyth and Ian Wotherspoon, Hong Kong Remembers (Hong Kong: Oxford University Press, 1996), p.53. 43. Alex H. Choi, "State-Business Relations and Industrial Restructuring", in Ngo (ed.), Hong Kong's History, p. 155. 44. This confidential dispatch to the British Government can be found in Steve Tsang (ed.), A Documentary History of Hong Kong. Government and Politics (Hong Kong: Hong Kong University Press, 1995), pp. 290-2. 45. So, Hong Kong's Embattled Democracy, p. 121. However, tycoons like Sir Pao Vue-kong and Li Ka-shing had developed much more intimate networks with British interests than Professor So indicates. 46. Benjamin K. P. Leung, "Political Development: Prospects and Possibilities", in Benjamin K. P. Leung (ed.), Social Issues in Hong Kong (Hong Kong: Oxford University Press, 1990), p. 39. 47. So, Hong Kong's Embattled Democracy, pp. 202-5. 48. Joseph Y. S. Cheng, "Introduction", in Joseph Y. S. Cheng (ed.), Hong Kong in Transition (Hong Kong: Oxford University Press, 1986), p. 21. 49. McKinsey & Company, Inc., The Machinery of Government. A New Framework for Expanding Services (Hong Kong: Government Printer, 1973), pp. 8, 19. 50. Lau, Society and Politics in Hong Kong, p. 130. 51. Lydia Dunn, Hong Kong Hansard, 30 March 1978, p. 707. 52. Dr Rayson Lisung Huang, Hong Kong Hansard, 27 October 1982, p. 104. 53. Norman Miners, The Government and Politics of Hong Kong (Hong Kong: Oxford University Press, 1995), pp. 108-11. 54. Bray, Hong Kong Metamorphosis, p. 192. This former official describes his efforts to improve the defective selection process in the 1970s. The process seemed no less vague after 1997 even in looking for technical expertise. See Lam Woon-kwong, Secretary for Home Affairs, GIS, 8 November 2000. 55. Derived from Li, Hong Kong From Britain to China. Political Cleavages, Electoral Dynamics and Institutional Changes, p. 107. 56. e.g., Stella Hung Kwok Wai-ching, Secretary for Home Affairs, Hong Kong Hansard, 8 May 1996, pp. 195-200 and Lam Woon-kwong, Hong Kong Hansard, 8 November 2000, pp. 715-22. 57. Lau Siu-kai, Decolonization Without Independence and the Poverty ofPolitical Leaders in Hong Kong (Hong Kong: Hong Kong Institute of Asia-Pacific Studies, 1990), p. 6. 58. On the aversion to controversy and the role of "senior" members of both the Legislative and Executive Councils, see CatherineJoyce Symons, Looking at the Stars (Hong Kong: Pegasus Books, 1996), pp. 70, 84. 59. Rayson Huang, A Lifetime in Academia (Hong Kong: Hong Kong University Press, 2000), p. 115. Notes to Pages 109-111 267 60. Tsai, Hong Kong in Chinese History. Community and Social Unrest in the British Colony, 1842-1913, p. 86. 61. This standpoint was articulated, for example, by Alex Wu Shu-chih, Hong Kong Hansard, 28 October 1976, pp. 119-20 and Lydia Dunn, Hong Kong Hansard, 9 January 1985, p. 474. 62. See Hong Kong Hansard, 9 and 10 January 1985, particularly pp. 467,469,512, 523, 538, 550. 63. Michael Thomas, Attorney General, Hong Kong Hansard, 10January 1985, p. 559. He overlooked the democratic institutions that had survived several severe tests in India, Malaysia, Singapore and Japan, for example. 64. Sze-yuen Chung, Hong Kong's Journey to Reunification. Memoirs of Sze-yuen Chung (Hong Kong: Chinese University Press, 2001), pp. 225, 305-9. 65. As one member of the elite boasted in 1975, officials could not rely on legislators "to rubber stamp" the government's proposals. Lo Tak-shing, Hong Kong Hansard, 5 February 1975, p. 443. His father, Sir Man-kam Lo, had demonstrated during World War II, how free the elite was to challenge the colonial administration when it chose to do so. See, for example, his denunciation of the misuse of war-time emergency powers, Hong Kong Hansard, 19 June 1941, pp. 145-7. 66. Chung, Hong Kong's Journey to Reunification. Memoirs of Sze-yuen Chung, p. 309. 67. The appointee who led the revolt against official policy had already lost the confidence of the colonial administration and was not reappointed to the Legislative Council. Harry Fang Sinyang, Rehabilitation: A Life's Work (Hong Kong: Hong Kong University Press, 2002), pp. 124-6. 68. Sir Philip Haddon-Cave, Chief Secretary, GIS, 1 February 1982. 69. Lydia Dunn, Hong Kong Hansard, 22 October 1980, p. 83; Sir Philip Haddon-Cave, Hong Kong Hansard, 19 November 1980, p. 199. 70. Report of the Commission ofEnquiry into the Hong Kong Telephone Company Ltd. 1975 (Hong Kong: Government Printer, 1975), Chapter 4 in particular. The threat of insolvency may have been exaggerated, pointing to incompetence within the government as well as the company itself. Philip Bowring, "Investment: Crossed Lines All Round", Far Eastern Economic Review (FEER hereafter), 28 November 1975. For a sympathetic account of the company's management at this time, see Austin, Coates, Quick Tidings ofHong Kong (Hong Kong: Oxford University Press, 1990), pp.180-8. 71. A particularly striking example of the ineffectiveness of appointed members can be found in the demurely discreet observations from the Chairman of the Hongkong Bank. G. M. Sayer, Hong Kong Hansard, 14 April 1974, p. 675. 72. As the Governor admitted. MacLehose, Hong Kong Hansard, 17 October 1973, p. 25. See also First Report of the Companies Law Revision Committee. The Protection of Investors (Hong Kong: Government Printer, 1971), pp. v-vii, 49; Second Report of the Companies Law Revision Committee. Company Law (Hong Kong: Government Printer, 1973), p. xi; Leo Goodstadt, "Companies Law. Bull in a China Shop", FEER, 21 October 1972; Philip Bowring, "Hongkong: Limited Securities Bill", FEER, 8 October 1973. 73. The details are summarized in Y C. Jao, "Recent Banking Crises in Hong Kong and Taiwan: A Comparative Perspective", in Nyaw Mee-kau and Chang Chak-yan (eds), Chinese Banking in Asia's Market Economies (Hong Kong: Chinese University of Hong Kong, 1989), pp. 21-37. 268 Notes to Pages 111-114 74. Securities Review Committee, The Operation and Regulation ofthe Hong Kong Securities Industry (Hong Kong: Government Printer, 1988), pp. 32,229-231. 75. The elite's involvement in the scandals of the financial markets is well illustrated in Robert Fell, Crisis and Change. The Maturing of Hong Kong's Financial Markets (Hong Kong: Longman, 1992), pp. 94-116. 76. Coates, Quick Tidings ofHong Kong, pp. 174-5; (later Sir) Kwan Cho-yiu, Hong Kong Hansard, 5 August 1964, p. 276; Commission ofEnquiry into the Hong Kong Telephone Company, p. 11. 77. As Ngan Shing-kwan indicated during this debate. Hong Kong Hansard, 16 March 1960, pp. 75-6. 78. K A. Watson, Hong Kong Hansard, 10 March 1966, p. 150; Sir Kan Yuet-keung, Hong Kong Hansard, 9 April 1969, p. 244. The latter example followed shortly after the Governor's explanation of why draconian measures were needed to eradicate the corrupt. Sir David Trench, Hong Kong Hansard, 26 February 1969, pp. 69-70. 79. In this case, the United Kingdom. Chris Skelcher, The Appointed State. QuasiGovernmental Organizations and Democracy (Buckingham: Open University Press, 1998), p.5. 80. This conclusion is based on Lau and Kuan, The Ethos ofthe Hong Kong Chinese, pp. 103-8; Lau Siu-kai, "Political Attitudes", in Lau Siu-kai et al. (eds), Indicators ofSocial Development: Hong Kong 1990 (Hong Kong: Hong Kong Institute of Asia-Pacific Studies, 1992), pp. 144-7. 81. On the survival of the colonial system and its participants from the business and professional classes, see Leo F. Goodstadt, "China and the Selection of Hong Kong's Post-Colonial Political Elite", China Quarterly, No. 163 (September 2000). 82. Anthony B L. Cheung, "The Changing Political System: Executive-led Government or 'Disabled' Governance?", in Lau Siu-kai (ed.), The First Tung Chee-hwa Administration. The First Five Years ofthe Hong Kong Special Administrative Region (Hong Kong: Chinese University Press, 2002), p. 53. 83. Most notably, Donald Tsang Yam-kuen, Financial Secretary, GIS, 12 February 1998. 84. Provisional Legislative Council, Financial Ajjairs Panel, 6 October and 17 November 1997 and Proceedings, 13 January 1998. 85. Leo F. Goodstadt, "Hong Kong: An Attachment to Democracy", The Rnund Table, Issue 348 (1998), pp. 486-7. 86. The Basic Law of the Hong Kong Special Administrative Region of the People's Republic of China, Annex I, s. 2. 87. Tung Chee Hwa, Speech to the Joint Chambers of Commerce, GIS, 10 January 2003. 88. Lau Siu-kai, "Tung Chee-hwa's Governing Strategy: The Shortfall in Politics", in Lau (ed.), The First Tung Chee-hwa Administration, pp. 17, 22. 89. Timothy Ka-ying Wong, "The Changing Public Perception of the Chief Executive", in Lau (ed.), The First Tung Chee-hwa Administration, pp. 377-82. Satisfaction with the government's performance had fallen from 43 percent at the start of 1998 to 25 percent at the end of 2001 according to the Home Affairs Bureau's bimonthly public opinion polls. 90. Especially by Lydia Dunn, e.g., Hong Kong Hansard, 28 March 1984, p. 775. See also Miners, The Government and Politics ofHong Kong, p. 80. 91. Hong Kong Hansard, 10 March 1993, p. 2442. Tam subsequently became a member of the post-1997 Executive Council, which endorsed the introduction of the ministerial arrangements. Notes to Pages 114-116 269 92. Tung Chee Hwa made this statement prior to the British departure. GIS, 21 March 1997. 93. See Constitutional Affairs Panel, System ofAccountahility for Principal Officials (CB21 PLICA, 22 August 2001 and 11 April 2002). The formal title of minister was not used presumably to avoid confusion with the Central People's Government nomenclature. 94. Henceforward, senior officials responsible for policy would serve at the pleasure of the Chief Executive and answer directly to him, thus transforming the hierarchical civil service structure in which Policy Secretaries had operated. See Constitutional Mfuirs Bureau, Accountability Systemfor Principal Officials (Legislative Council Paper, 17 April 2002), pp. 8-10. 95. Tung Chee Hwa, GIS, 24June 2002. 96. Donald Tsang Yam-kuen, GIS, 25 April 2002. 97. Constitutional Mfairs Bureau, Accountability System for Principal Officials, pp. 5, 8. 98. Robert G. Kotewall and Gordon C. K. Kwong, Report of the Panel of Inquiry on the Penny Stocks Incident (Hong Kong SAR Government, 2002), Chapters 6 and 12 in particular. 99. The reprimand was published. Tung Chee Hwa, GIS, 15 March 2003. 100. The authorities were attacked, for example, for distorting their analysis of responses to a public consultation exercise on the bill. See the review conducted by academics from the University of Hong Kong and the Chinese University. Research Team on the Compendium of Submissions on Article 23 of the Basic Law, "What to Do and What NOT to Do: A Case Study of the Government's Consultation Exercise on Its Proposals to Implement Article 23 of the Basic Law", 10 June 2003, pp. 2-6. 101. See Ta Kung Pao and China Daily Hong Kong edition, 2 July 2003. 102. Tung Chee Hwa, GIS, 17 July 2003. 103. SARS Expert Committee, SARS in Hong Kong: FrvmExperience to Action (Hong Kong: 2003), p. 5. The explanations for why the Health "Minister" remained in office were presented by Yeoh Eng-kiong, Secretary for Health, Welfare and Food and Tung Chee Hwa, GIS, 2 October 2003. 104. As Tung Chee Hwa explained on the evening of the protest. GIS, 1 July 2004. 105. Stephen Lam, Secretary for Constitutional Mfairs, GIS, 23 September 2003. Tsang Yok-sing and James Tien, members of Tung's Executive Council, expressed their disappointments in newspaper interviews. Hong Kong Economic Journal, 23 June 2003. 106. See Twelve-Month Report on Implementation of the Accountability System for Principal Officials (Hong Kong: Constitutional Affairs Branch, 2003), pp. 29, 54-8. 107. Patricia Brenner et aI., People 5 Republic ofChina - Hong Kong Special Administrative Region Financial System Stability Assessment ... (Washington: International Monetary Fund, 2003), pp. 34-5. 108. A detailed analysis of the background to this innovation and its initial weaknesses can be found in Christine Loh and Richard Cullen, "Politics Without Democracy. A Study of the New Principal Officials Accountability System in Hong Kong", San Diego International LawJournal, Vol. 4 (2003). 109. Chung in Blyth and Wotherspoon, Hong Kong Remembers, p. 53. 110. Chung, Hong KongsJourney to Reunification. Memoirs of Sze-yuen Chung, p. 305. 270 Notes to Pages 117-120 CHAPTER VI 1. Ian Scott, "Introduction" in Ian Scott (ed.), Institutional Change and the Political Transition in Hong Kong (London: Macmillan Press Ltd, 1998), p. 8. 2. As admitted candidly by a prominent civil servant. K. Y. Yeung, "The Role of the Hong Kong Government in Industrial Development", in Edward K. Y. Chen et al. (eds), Industrial and Trade Development in Hong Kong (Hong Kong: Centre of Asian Studies, 1991), p. 49. 3. David Cannadine, Ornamentalism. How the British Saw Their Empire (London: Penguin Books, 2002), pp. 138-41, 148-9. 4. Tak-wing Ngo, "Changing Government-Business Relations and the Governance of Hong Kong", in Robert Ash et al. (eds), Hong Kong in Transition. The Handover Years (London: Macmillan Press Ltd, 2000), pp. 31-3. His essay provides a powerful analysis of this dilemma and of the colonial administration's use of its laissez faire commitments to resolve the conflicts involved. 5. Report of the Commission ... to Enquire Into the Causes and Effects of the Present Trade Recession ... (Hong Kong: Noronha & Co., 1935), p. 74. 6. Anne O. Krueger, "Policy Lessons From Development Experience Since the Second World War", in Jere Behrman and T. N. Srinivasan (eds), Development Economics VolumeIIIB (Amsterdam: Elsevier, 1995), pp. 2501, 2504. 7. Bela Belassa, "Outward Orientation", in Hollis Chenery and T. N. Srinivasan (eds) Handbook ofDevelopment Economics Volume II (Amsterdam: Elsevier, 1989), pp. 165371 . 8. D. K. Fieldhouse, The West and the Third World. Trade, Colonialism, Dependence and Development (Oxford: Blackwell Publishers, 1999), p. 87. 9. See the British Cabinet document from 1949 quoted in Tak-wing Ngo, "Industrial history and the artifice of laissezjaire colonialism", in Tak-Wing Ngo (ed.), Hong Kong's History. State and Society Under Colonial Rule (London: Routledge, 1999), p. 129. 10. "Hong Kong Ten-Year Development and Welfure Plan", and "Government Planning for Modernisation of City and Port", Far Eastern Economic Review (FEER hereafter), 26 November 1947; "Hongkong Town Planning and Industrialisation", FEER, 19 May 1948. 11. Patrick Abercrombie, Hong Kong Preliminary Planning Report (Hong Kong: n.p., 1948), pp. 4-6. The post-colonial administration came round to the view that urban population densities had become excessive and that amenities should be the priority. Planning Department, HK2030 Planning Vision and Strategy Stage 3 Public Consultation (Hong Kong: Housing Planning and Lands Bureau, 2003); South China Morning Post, 6 May 2003. 12. Roger Bristow, Land-Use Planning in Hong Kong. History, Policies and Procedures (Hong Kong: Oxford University Press, 1984), pp. 70-2, 76, 78-9, 212; T. L. Bowring, Director of Public Works, Hong Kong Hansard, 28 March 1956, p. 159. 13. On official attitudes and the pressure on public utilities, see Austin Coates, Quick Tidings ofHong Kong (Hong Kong: Oxford University Press, 1990), p. 156. 14. Rice rationing lasted until 1954, and export controls on non-strategic trade items until 1955. The clearest account of these powers can be found in Alan Birch, "Control of Prices and Commodities in Hong Kong", Hong Kong LawJournal, Vol. 4, Part 2 (1974), pp. 133-50. The meat trade was subject to controls until 1957. Notes to Pages 120-122 271 Nigel Cameron, An Illustrated History ofHong Kong (Hong Kong: Oxford University Press, 1991), p. 277. 15. A. G. Clarke, Financial Secretary, Hong Kong Hansard, 2 March 1955, p. 49. The overall profits were equivalent to almost a quarter of the government's total revenue for the financial year 1954-55. 16. See "Hongkong's Trade in April 1952", FEER, 5 June 1952; Ron G. 'Whitehead, "Outlook for Hongkong Textiles", FEER, 23 October 1952; "Hongkong: Trade and Supplies 1952-53", FEER, 11 March 1954. 17. e.g., C. G. S. Fellows, Financial Secretary, Hong Kong Hansard, 31 March 1949, pp. 135-6. 18. For an example of post-war confidence in the ability of the economy to solve its own problems, see]. M. Braga, "Trade Development in Hong Kong and the Department of Commerce and Industry", in]. M. Braga (compiler), Hong Kong Business Symposium (Hong Kong: n.p., 1957), pp. 151-2. 19. This document had been commissioned by a Labour government in 1950 but was issued by a Conservative Secretary of State for the Colonies with no reservations about a highly interventionist role for the state in economic affairs. His covering letter and the full report can be found in Hong Kong Public Records Office HKRS41-1-6032, "Colonial Industrial Development - Legislation to encourage 20. Except for Gene Gleason, Hong Kong (London: Robert Hale Ltd, 1964), p. 96. 21. Lau Siu-kai and Kuan Hsin-chi, The Ethos of the Hong Kong Chinese (Hong Kong: Chinese University Press, 1988), p. 27. 22. Steve Tsang, A Modern History ofHong Kong (Hong Kong: Hong Kong University Press, 2004), p. 165. 23. Siu-kai Lau, Society and Politics in Hong Kong (Hong Kong: Chinese University Press, 1982), p. 164. 24. Philip Haddon-Cave, "Introduction. The Making of Some Aspects of Public Policy in Hong Kong", in David Lethbridge (ed.), The Business Environment in Hong Kong (Hong Kong: Oxford University Press, 1980), p. xii. 25. Ronald Findlay and Stanislaw Wellisz, "Hong Kong", in Ronald Findlay and Stanislaw Wellisz (eds), The Political Economy ofPoverty, Equity, and Growth. Five Small Open Economies (New York: Oxford University Press, 1993), pp. 21-2; Lo Shiu-hing, "The Chief Executive and Business: A Marxist Class Perspective", in Lau Siu-kai (ed.), The First Tung Chee-hwa Administration. The First Five Year.s of the Hong Kong Special Administrative Region (Hong Kong: Chinese University Press, 2002), p. 302. 26. The polling evidence on public attitudes is in Lau Siu-kai et al., "Political Attitudes", in Lau Siu-kai et al. (eds), Indicators of Social Development: Hong Kong 1988 (Hong Kong: Hong Kong Institute of Asia-Pacific Studies, 1991), p. 192. 27. See the perceptive analysis by Thomas W. P. Wong, "Economic Culture and DistributiveJustice", in Lau Siu-kai et al. (eds), Indicator.s ofSocial Development: Hong Kong 1993 (Hong Kong: Hong Kong Institute of Asia-Pacific Studies, 1995), pp. 373-9. 28. Lau Siu-kai and Kuan Hsin-chi, "Public Attitudes towards Laissez Faire in Hong Kong", Asian Survey, Vol. 30, No.8 (1990), pp. 768-80. 29. The government admitted that a strong case could be argued for improvements in both areas. Note the revealing comments on these issues, albeit carefully hedged, by SirJohn Cowperthwaite, Financial Secretary, Hong Kong Hansard, 26 February 272 Notes to Pages 122-126 1964, p. 51; 25 February 1965, pp. 77, 79; 24 February 1966, pp. 69, 73; 28 February 1968; p. 64. 30. The Colonial Office pointed to these regular budget surpluses when describing Hong Kong as "a relatively wealthy Colony" in 1959. David Faure, Colonialism and the Hong Kong Mentality (Hong Kong: Centre of Asian Studies, 2003), p. 184. 31. Elfed Vaughan Roberts and David J. Petersen, "The Hong Kong Business Environment", in Robert Ash et al. (eds), Hong Kong in Transition. The Handover Years (London: Macmillan Press Ltd, 2000), pp. 8, 13. 32. Ngo in Ash et al. (eds), Hong Kong in Transition. The Handover Years, pp. 30-1. 33. "Men Who Make Hongkong: 20th Century Taipan", FEER, 30 May 1963; "Traveller's Tales", FEER, 24 August 1961; Derek Davies, "To Speak With One Voice", FEER, 6 June 1963. 34. "Problems of Hongkong", FEER, 3 April 1958; Stephen Chiu, The Politics ofLaissezfaire . Hong Kong's Strategy of Industrialization in Historical Perspective (Hong Kong: Hong Kong Institute of Asia-Pacific Studies, 1994), p. 78. 35. "Notes of the Week: Hongkong Industry Problems", FEER, 9 October 1952; Derek Davies, "Federation Feelings", FEER, 4June 1964; Dr Hsin Sutu, "Free Trade and Hongkong's Economy", FEER, 21 June 1962; Nigel Ruscoe, "A Super-Federation?", FEER, 6 December 1962; "Capital Outflow", FEER, 20 March 1964. 36. A. G. Clarke, Financial Secretary, Hong Kong Hansard, 24 February 1960, pp. 634 . His successor, Cowperthwaite, was scathing in his dismissal of calls for state intervention despite expressing a readiness to listen to proposals to help "complete new industries", Hong Kong Hansard, 30 March 1962, pp. 131-4. 37. Teresa Y C. Wong, "A Comparative Study of the Industrial Policy of Hong Kong and Singapore in the 1980s", in Chen et al. (eds), Industrial and Trade Development in Hong Kong, pp. 264-5. 38. Jermain T. M. Lam, The Political Dynamics of Hong Kong Under Chinese Sovereignty (Huntington: Nova Science Publishers, Inc., 2000), pp. 92-3. 39. Kowloon Disturbances 1966. Report ofCommission ofInquiry (Hong Kong: Government Printer, 1967), pp. 136-48. The report's final paragraph in particular. 40. A Report by the Inter-Departmental Working Party to Consider Certain Aspects of Social Security (Hong Kong: Government Printer, 1967). 41. Hong Kong Public Records Office HKRSI63-9-486, "Social Security Implications of Change in HK Status-Quo ... ", M. 7 Governor to Financial Secretary, 22 June 1967; M. 24 Financial Secretary to Governor; (11) "An Appreciation of the Report by the Inter-Departmental Working Party on Social Security", 10 October 1967. 42. Hong Kong Hansard, 8 October 1969, p. 85. 43. Hong Kong Hansard, 25 February 1970, pp. 366-7. 44. Hong Kong Hansard, 28 February 1968, p. 60; 26 February 1969, p. 104; 25 February 1970, p. 353. Alvin Rabushka, The Changing Face ofHong Kong. New Departures in Public Policy (Washington: American Enterprise Institute, 1973), pp. 69-70. 45. Hong Kong Hansard, 28 February 1962, p. 57; 25 February 1970, pp. 368-9; 24 February 1971, p. 419. 46. Joseph Y S. Cheng, "Political Participation in Hong Kong: Theoretical Issues and Historical Legacy", in Joseph Y S. Cheng (ed.), Political Participation in Hong Kong. Theoretical Issues and Historical Legacy (Hong Kong: City University of Hong Kong Press, 1999), pp. 8-9. Notes to Pages 126-130 273 47. C. V. Brown and P. M. Jackson, Public Sector Economics (Oxford: Basil Blackwell, 1990), p. 49. 48. Tsang Yam-kuen, Financial Secretary, Government Information Services (GIS hereafter), 30 October 1998. On the relationship between Western protectionism and this process, see Suzanne Berger and Richard K. Lester (eds), Made By Hong Kong (Hong Kong: Oxford University Press, 1997), pp. 152-3. 49. The background is summarized conveniently in Twenty Five Years of the Hongkong Cotton Spinning Industry (Hong Kong: Hong Kong Cotton Spinners Association, 1973), pp. 55-59. 50. For a fuller elaboration of the gains from these arrangements, see Hong Kong Report for the Year 1969 (Hong Kong: Government Press, 1970), p. 5. 51. A precedent-setting example of the government's role in shaping industry consensus is recorded by Kayser Sung, "The Hongkong-Lancashire Textile Pact - A Preliminary Assessment", FEER, 13 August 1959. 52. Henry Wai-chung Yeung, Transnational Corporations and Business Netwoms. Hong Kong Firms in the ASEAN Region (London: Routledge, 1998), pp. 130,206-7. 53. Alex H. Choi, "State-Business Relations and Industrial Restructuring", in Ngo (ed.), Hong Kong's History. State and Society Under Colonial Rule, pp. 152-3. 54. Kayser Sung, "Textile Quotas - Aliquot Parts", FEER, 17 Jan 1963. 55. Hong Kong Report for the Year 1969, p. 5. 56. The criticism of the quota system presented here is elaborated in detail by the leading commentator on the textile industry during this period in Kayser Sung, "Trading on From 1997, with Special Reference to Hong Kong's Textile Agreements", in Y C.Jao etal. (eds), Hong Kong and 1997. Strategies for the Future (Hong Kong: Centre of Asian Studies, 1985), pp. 319-20. 57. These complaints surfaced as early as 1966. David Bonavia, "A Question of Quotas", FEER, 16 June 1966. The opposition to any drastic overhaul of the system was eloquently expressed by a leading Shanghai textile producer Francis Yuan-hao Tien, Hong Kong Hansard, 27 October 1976, pp. 114-6. 58. In money - not real - terms. These figures are derived from the relevant editions of the Hong Kong Annual Digest of Statistics. 59. Planning, Environment and Lands Branch, Report of the Task Force on Land Supply and Property Prices (June 1994), p. 1. 60. Consumer Council, How Competitive Is the Private Residential Property Market? (Hong Kong: Consumer Council, 1996), pp. 2-4, 5, 8, 3-9, 5-3, A3-2, Annex 4. 61. The four were the Housing Authority, the Land Development Corporation, the Town Planning Board and the Land and Building Advisory Committee. 62. SeeJames Lee, Housing, Home Ownership and Social Change in Hong Kong (Aldershot: Ashgate, 1999), p. 29. Legislative Councillors also displayed a strong pro-property bias in an extensive debate following the introduction of these measures, regardless of "populist" credentials. Hong Kong Hansard, 18 January 1995, pp. 1749-81. 63. Housing Branch, Homes for Hong Kong People: The Way Forward. Long Term Housing Strategy Review Consultative Document (Hong Kong: Government Secretariat, 1997), p.16. 64. Hong Kong Public Records Office HKRS270-5-44, "Commercial and Industrial Development - Major Policy", letters from R. (later Sir Robert) Black, (future Governor of both Singapore and Hong Kong) of 19 July 1958 and A. G. Clarke, Financial Secretary of 5 July 1958. 274 Notes to Pages 130-132 65. HKRS270-5-44, Director Commerce and Industry memo to Financial Secretary, 9 September 1958; Commissioner of Labour letter to Director of Commerce and Industry, 9 September 1958; and M. 29,4 September 1967. 66. James Forsyth, "The Cost of Salvage", FEER, 29 December-4January 1969. 67. Hong Kong Public Records Office HKRS163-1-2299, "The Industrial Bank Committee - Proceedings of ... ", (33) letter from H. A. Angus, Director of Commerce and Industry, 4 June 1959. 68. The survey results were set out in a confidential paper, Industry Development Branch, "Report on the Fact-Finding Survey of Small-Scale Industry" (Commerce and Industry Department, 9January 1969, mimeo.). The conflict between market realities and business lobbying is revealed by a comparison between two confidential documents: Industry Development Branch, "The Case for Improved Access to Loans for Re-equipment Purposes by Small Scale Industry" (Department of Commerce and Industry, IND 2/ 903, 27 October 1969, mimeo) and "Memorandum to the Loans for Small Industry Committee" (Commerce and Industry Department, IND 2/ 903, 4 November 1969, mimeo). See also Nancy Ma, "Hongkong: Tonic for the Small Man", FEER, 8 April 1972. 69. H. C. Y Ho, The Fiscal System ofHong Kong (London: Croom Helm, 1979), p. 62. 70. His reservations about laissez faire and his advocacy of "positive noninterventionism " were spelled out in Haddon-Cave in Lethbridge (ed.), The Business Environment in Hong Kong, pp. xii-xii and GIS, 1 February 1982. See also his speech in Hong Kong Hansard, 27 March 1974, pp. 724-6. 71. Report of the Advisory Committee on Diversification 1979 (Hong Kong: Government Printer, 1979), p. 167. 72. Teresa Y C. Wong, "Hong Kong's Manufacturing Industries: Transformations and Prospects", in Benjamin K. P. Leung and Teresa Y C. Wong (eds), 25 Years ofSocial and Economic Development in Hong Kong (Hong Kong: Centre ofAsian Studies, 1994), p. 543; Howard Davies, "The Future Shape of Hong Kong's Economy: Why HighTechnology Manufacturing Will Prove to be a Myth", in Patricia Fosh et al. (eds), Hong Kong Management and Labour. Change and Continuity (London: Routledge, 1999), p. 45; Edward K. Y Chen, "The Economic Setting", in David Lethbridge and Ng Sek Hong (eds), The Business Environment in Hong Kong (Hong Kong: Oxford University Press, 1995), pp. 36-7. 73. Berger and Lester (eds), Made By Hong Kong, p. 21. 74. Edward K. Y Chen and Kui-Wai Li, "Industrial Development and Industrial Policy in Hong Kong", in Chen et al. (eds), Industrial and Trade Development in Hong Kong, p.41. 75. Hong Kong Hansard, 26 February 1986, pp. 614, 638. 76. The 1984-85 Budget: Speech by the Financial Secretary (Hong Kong: Government Printer, 1984), p. 3. 77. Hong Kong Hansard, 23 February 1983, pp. 518-20. 78. Hong Kong Hansard, 25 April 1984, p. 908. For another instance of his resistance to business critics, see Hong Kong Hansard, 23 April 1986, pp. 1065, 1069. 79. He claimed that the financial burden of the new airport "could result in halving the low cost housing programme", although he had admitted in the previous year that, in managing the public sector, "the true shortage is of resources including people - and not of money". Hong Kong Hansard, 23 February 1983, p. 520 and 24 February 1982, p. 428. Notes to Pages 132-134 275 80. Lau Chi Kuen, Hong Kong's Colonial Legacy (Hong Kong: The Chinese University Press, 1997), p. 6l. 81. William McGurn (ed.), Basic Law, Basic Questions. The Debate Continues (Hong Kong: Review Publishing Company Ltd, 1988), pp. 167-8. 82. From the nineteenth century to World War II, British officials in both London and Hong Kong had rejected bids from the business community (then dominated by expatriates) for such a formal position within the political structure because they were so evidently self-serving. See Steve Tsang (ed.), A Documentary History of Hong Kong. Government and Politics (Hong Kong: Hong Kong University Press, 1995), pp. 79-8l. 83. Xiao Weiyun, One Country, Two Systems. An Account of the Drafting of the Hong Kong Basic Law (Beijing: Peking University Press, 2001), pp. 419-22. 84. Zhou Nan, Director of the New China News Agency, Hong Kong Branch, Eastern Express, 10 April 1996; Wen Wei Pao, 4 March 1993; People's Daily overseas edition, 8 March 1994. 85. These pressures for more interventionist government policies were so strong by the end of British rule that both the Chief Secretary and the Financial Secretary felt obliged to mount a counter-attack. GIS, 3 December 1996 and 13 March 1997. 86. Alkman Granitsas, "More Like Singapore: Can industrial policy build a hi-tech Hong Kong?", FEER, 23 October 1997. Tung himself preferred to hedge his bets: "We have never advocated a Singapore-style industrial policy. I don't believe in it. But on the other hand, Singapore has been successful in what they do." GIS, 8 October 1997. 87. Andrew Sheng, Deputy Chief Executive, Hong Kong Monetary Authority, GIS, 28 September 1995. 88. GIS, 2 December 1999. 89. This account of the scheme is based on Tam Wing-pong, Secretary for Trade and Industry, GIS, 3 June 1998; Chau Tak-hay, Secretary for Trade and Industry, GIS, 24July 1998; GIS, 31 March and 29 October 1999; 'rVonne Choi, Secretary for Trade and Industry, GIS, 14June 2000; Tung Chee Hwa, GIS, 24January 2002. 90. These programmes involved overt subsidies. Small and Medium Enterprises Committee, A Report on Support Measures for Small and Medium Enterprises (Hong Kong: SAR Government, 2001), Chapter 5. 91. The banks' views on these risks were analysed in Market Research Division, "Survey of the Financing Situation of Small and Medium-Sized Enterprises", Hong Kong Monetary Authority Quarterly Report (October 2000), p. 38. 92. Response to the new initiatives was reported in Legislative Council Panel on Commerce and Industry, Progress Report on the Four Funding Schemes for Small and Medium Enterprises, (CB(l)1670/01-02(03), 13 May 2002). 93. Yash Ghai, "The Rule of Law and Capitalism: Reflections on the Basic Law", in Raymond Wacks (ed.), Hong Kong, China and 1997: Essays in Legal Theory (Hong Kong: Hong Kong University Press, 1993), p. 347, especially f.n. 29. 94. Chau Tak-hay, GIS, 3 March 1999. 95. Tung Chee Hwa, Hong Kong Hansard, 6 May 1999, pp. 175-8; GIS, 29 April and 10 May 1999. For the government's main lines of defence, see GIS, 16 March, 29 April and 10 May 1999. Critics were not pacified by the bureaucrats' success in using the furore to claw back a significant portion of the potential profits. The curtailed profit opportunities are evident from PCCW, Building on Fundamentals: Annual 276 Notes to Pages 135-137 Report 2001 (Hong Kong: PCCW Ltd, 2002), p. 28. See also Nicholas Yang, Cyberport Chief Executive, Ming Pao, 3 November 2003. 96. Hong Kong Hansard, 6 May 1999, p. 176. 97. HKSARG Secretariat, "Ground Rules for Special Consideration of Private Sector Initiatives" in Panel on Economic Services, The Administration's response ... on 11 November 1999, pp. 2-3. 98. Chief Executive's Commission on Technology and Innovation, Second and Final Report (Hong Kong: SAR Government, 1999); Commission of Strategic Development, Bringing the Vision to Life. Hong Kong's Long-Term Development Needs and Goals (Hong Kong: SAR Government, 2000); Chau Tak-hay, GIS, 25 November 1998. 99. World Trade Organization, Trade Policy Review. Hong Kong, China 1998 (Geneva: World Trade Organization, 1999), pp. xx-xxi. 100. WTO Secretariat, Trade Policy Review. Hong Kong, China (Geneva: World Trade Organization, 2002), p. viii. 101. Chris Patten, East and West. The Last Governor ofHong Kong on Power, Freedom and the Future (London: Macmillan, 1998), p. 51. 102. AIkman Granitsas, "Land's End: Hong Kong Chief Outlines Real Estate Policy in First Speech", FEER, 17 July 1997. 103. Tsang Yam-kuen, the Financial Secretary, felt obliged to refute "bizarre" reports that the government's intention had been to "flood the market" with public housing. GIS, 23 November 2000. Nevertheless, the belief persisted that the Chief Executive had been following the advice of an Executive Councillor who "hated the rich". Stanley Ho, President of the Real Estate Developers Association, Sing Tao, 2 January 2004. 104. This painful process is very apparent from the way his public presentations of his housing policies altered. See, for example, GIS, 16July 1997, 20 August 1998 and 5July 2000. 105. Stephen Ip, Secretary for Financial Services, GIS, 7 November 2001. 106. GIS, 17 October 2003. 107.James Lee, Housing, Home Ownership and Social Change in Hong Kong (Aldershot: Ashgate, 1999), p. 208. 108. Michael Suen, Secretary for Housing, Planning and Lands, illustrated the government's dilemma when he summed up the community's expectations for public housing even as he defended the new, restricted housing policies: "Society's consensus and common sense of purpose [was] to provide affordable rental housing to low-income families" and "providing subsidized rental housing for families in need must continue to sit at the very heart of Government's housing strategy". GIS, 13 November 2002. 109. More specifically: "to avoid an overlap between the [public sector] and the private property market". Tsang Yam-kuen, GIS, 3 September 2001. A Ta Kung Pao editorial, 4 September 2001, said simply: "Now that the market has slumped, the Government must avoid competing with private developers." 110. Tsang Yam-kuen, GIS, 3 September 2001; Review of the Institutional Framework for Public Housing, The Report (Hong Kong: SAR Government, 2002), pp 20-3. 111. The new policy was presented to legislators by Suen as Secretary for Housing, Planning and Lands, A Statement on Housing Policy by Secretary for Housing Planning and Lands (CB(l) 301/02-03(01),15 November 2002). Notes to Pages 137-143 277 112. GIS, 17 July 2003. 113. The post-1997 survey data on changing attitudes towards economic policy and government attitudes towards the rich are analysed in Lau Siu-kai, "Confidence in the Capitalist Society", in Lau Siu-kai et al. (eds), Indicatars ofSocial Development: Hong Kong 1999 (Hong Kong: Hong Kong Institute of Asia-Pacific Studies, 2001), pp. 102-3, 108. 114. Survey evidence about the public's fears of unjustified government intervention to aid business interests is reviewed in Victor Zheng et aL, "From a Free Economy to an Interventionist Society. The Crisis of Governance in Hong Kong", in Lau et aL (eds), Indicatars ofSocial Development: Hong Kong 1999, pp. 25, 29-30 in particular. CHAPTER VII 1. As early as the 1960s, this was the message of both the Chief Justice and the government's own advisers on corruption. Gene Gleason, Hong Kong (London: Robert Hale, 1964), p. 166; Reports of the Standing Committee and the Advisory Committee on Corruption (Hong Kong: Government Printer, n.d.), pp. 49-50. 2. Second Repart of the Commission ofInquiry Under Sir Alistair Blair-Kerr (Hong Kong: Government Printer, 1973), pp. 47-9, 52. 3. Godber's police career, his personal wealth, and the police investigation that so frightened him are described in First Report of the Commission ofInquiry Under Sir Alistair Blair-Kerr (Hong Kong: Government Printer, 1973), pp. 3-6. Additional information was derived through personal acquaintance while serving with him on the Transport Advisory Committee between 1969 and 1971. 4. W. A. Blair-Kerr, Report of a Commission Appointed to Inquire into Allegations Made by Chan Kin-kin (Hong Kong: Government Printer, n.d.), pp. 187-9. 5. The Singapore leader was, of course, the then-Prime Minister, Lee Kuan Yew. Second Repart of the Commission ofInquiry Under Sir Alistair Blair-Kerr, pp. 44-5. Blair-Kerr was echoing the sentiments expressed by the expatriate head of the Hong Kong Police Force's Anti-Corruption Branch after a visit to Singapore. 6. Second Report of the Commission ofInquiry Under Sir Alistair Blair-Kerr, p. 26. 7. An excellent account of the syndicates and their organization is provided by Taksing Cheung and Chong-chor Lau, "A Profile of Syndicate Corruption in the Police Force", in Rance P. L. Lee (ed.), Corruption and Its Control in Hong Kong. Situations up to the Late Seventies (Hong Kong: Chinese University Press, 1981). 8. Yiu Kong Chu, The Triads as Business (London: Routledge, 2000), pp. 83, 89, 93, 102. 9. The traditional colonial responses are documented in Steve Tsang (ed.), A Documentary History ofHong Kong. Government and Politics (Hong Kong: Hong Kong University Press, 1995), pp. 178-81. 10. SRH, Government Attitude Survey (Hong Kong: Survey Research Hongkong Ltd, 1973), pp. 28-31. 11. Christopher Munn, Anglo-China. Chinese People and British Rule in Hong Kong, 18411880 (Richmond: Curzon, 2001), p. 326. 12. e.g., in the building sector. J. J. Robson, Director of Public Works, Hong Kong Hansard, 12 October 1966, pp. 390-2. 13. e.g., Terence Sorby, Director of Commerce and Industry, Hong Kong Hansard, 27 March 1968, p. 164. 278 Notes to Pages 143-146 14. Hsin-chi Kuan, "Anti-corruption Legislation in Hong Kong - A History", in Lee (ed.), Corruption and Its Control in Hong Kong. Situations Up to the Late Seventies, p. 24. 15. Alexander Grantham, Via Ports. From Hong Kong to Hong Kong (Hong Kong: Hong Kong University Press, 1965), p. 121. 16. Report of the Committee Appointed to Consider Certain Matters Concerning the Closure of the Chong Hing Mansion 1971 (Hong Kong: Government Printer, 1972), p. 9. 17. Kuan in Lee (ed.), Corruption and Its Control in Hong Kong. Situations up to the Late Seventies, pp. 25-6. 18. For details, see Reports ofthe Standing Committee and Advisory Committee on Corruption, pp. 30-1, 51-6, 58-9, 61-2. 19. Hong Kong Public Records Office HKRS163-1-2104, "South China Morning Post, China Mail, Standard - Confidential Correspondence Concerning ... ", M. 13 Public Relations Officer to Colonial Secretary, 1 July 1960. 20. Catherine R. Schenk provides a revealing anecdote from the area of exchange controls in Hong Kong as an International Financial Centre. Emergence and Development 1945-65 (London: Routledge, 2001), p. 93. One ofthe few historians to recognize Trench's role is Tsang (ed.), A Documentary History ofHong Kong. Government and Politics, p. 185. 21. See "Welcome", Far Eastern Economic Review (FEER hereafter), 16 April 1964 and Derek Davies, "The Home Run", FEER, 17-23 September 1967. 22. Kowloon Disturbances 1966. Report ofCommission ofInquiry (Hong Kong: Government Printer, 1967), pp. 128, 130-1. 23. Jeremiah K H. Wong, "The ICAC and Its Anti-Corruption Measures", in Lee (ed.), Corruption and Its Control in Hong Kong. Situations up to the Late Seventies, pp. 47-8; Reports of the Standing Committee and the Advisory Committee on Corruption, p. 59. 24. Steve Tsang, "Government and Politics in Hong Kong: A Colonial Paradox", in Judith M. Brown and Rosemary Foot (eds), Hong Kong's Transitions, 1842-1997 (London: Macmillan Press Ltd, 1997), pp. 74-5. 25. MacLehose was particularly indebted to his predecessor's six-year programme to rehouse some 140,000 individuals a year. (Trench, Hong Kong Hansard, 1 October 1969, p. 6.) MacLehose's annual target was 180,000. (Hong Kong Hansard, 18 October 1972, p. 4.) 26. Lord MacLehose, "Social and Economic Challenges", in Sally Blyth and Ian Wotherspoon, Hong Kong Remembers (Hong Kong: Oxford University Press, 1996), p.124. 27. Michael 1.Jackson, "The Criminal Law", in Raymond Wacks (ed.), The Law in Hong Kong 1969-1989 (Hong Kong: Oxford University Press, 1989), p. 192. 28. I was present at this encounter, which took place at a private lunch on the lawns of Government House. 29. Derek Davies and Leo Goodstadt, "Hongkong Corruption: Crawling out of the Woodwork", FEER, 7 March 1975. 30. Hong Kong Hansard, 8 October 1975, p. 29. 31. Information on this incident was provided privately by the ICAC Commissioner, Sir Jack Cater. See also Davies and Goodstadt, "Hongkong Corruption", FEER, 7 March 1975. 32. HJ. Lethbridge, Hard Graft in Hong Kong. Scandal, Corruption, the ICAC (Hong Kong: Oxford University Press, 1985), pp. 142-3. Notes to Pages 146-150 279 33. Sir Murray MacLehose, Hong Kong Hansard, 5 October 1977, p. 17 and 7 November 1977, pp. 157-9. 34. Alvin Y. So, Hong Kong's Embattled Democracy. A Societal Analysis (Baltimore: John Hopkins University Press, 1999), p. 32. 35. This officer's views are all the more striking because he was a witness to the courage of Hong Kong Chinese under torture by the Japanese. George Wright-Nooth, Prisoners of the Turnip Heads. Horror; Hunger and Humour in Hong Kong, 1941-1945 (London: Leo Cooper, 1994), pp. 20, 152. 36. Second Report of the Commission ofInquiry Under Sir Alistair Blair-Kerr, p. 24. 37. Peter N. S. Lee, "The Causes and Effects of Police Corruption: A Case in Political Modernization", in Lee (ed.), Corruption and Its Control in Hong Kong. Situations Up to the Late Seventies, p. 187-8; Peter Harris, Hong Kong A Study in Bureaucratic Politics (Hong Kong: Heinemann Asia, 1978), p. 148; Lethbridge, Hard Graft in Hong Kong. Scandal, Corruption, the ICAC, p. 65. 38. Dawson was a former Director of Special Branch. 'Whitely had also worked in Special Branch and was to become Deputy Director of Operations with the ICAC. The background to the breakthrough in the police force and the role played by individual officers is summarized by Wong in Lee (ed.), Corruption and Its Control in Hong Kong. Situations Up to the Late Seventies, pp. 47-50. 39. For some of the subsequent Canadian activities ofsuch officers, see "Investigations: Saga of the 'Five Dragons"', FEER, 1 July 1977. 40. T. Wing Lo, Corruption and Politics in Hong Kong and China (Buckingham: Open University Press, 1993), p. 88. 41. According to court evidence. Davies and Goodstadt, "Hongkong Corruption", FEER, 7 March 1975. 42. Cheung and Lau in Lee (ed.), Corruption and Its Control in Hong Kong. Situations up to the Late Seventies, p. 219. 43. Cheung and Lau in Lee (ed.), Corruption and Its Control in Hong Kong. Situations up to the Late Seventies, pp. 211-2. 44. Lethbridge, Hard Graft in Hong Kong. Scandal, Corruption, the ICAC, p. 128. 45. Mary Lee, "Hongkong: Work Suspended: Investigators Close Their Files on Corrupt Property Developers After Only One Conviction", FEER, 21-27 August 1981. 46. Lethbridge, Hard Graft in Hong Kong. Scandal, Corruption, the ICAC, p. 36. 47. The need for anti-corruption measures was made very cogently in Reports of the Standing Committee and the Advisory Committee on Corruption, pp. 33 et seq. 48. Legislative Council, First Report of the Select Committee on Building Problems ofPublic Housing Units. Volume I: Main Report and Minutes of Proceedings (January 2003), Chapters viii and ix. 49. Particularly through real estate investments in the late 1960s. Steve Tsang, A Modern History ofHong Kong (Hong Kong: Hong Kong University Press, 2004), p. 173. 50. Samuel R. Staley, Planning Rules and Urban Economic Performance. The Case ofHong Kong (Hong Kong: Chinese University Press, 1994), p. 35. 51. The account that follows is based on "Report on the first term of reference", Report ofthe Committee Appointed to Consider Certain Matters Concerning the Closure ofthe Chong Hing Mansion 1971. Some additional details are from Leo Goodstadt, "Hongkong: Apart at the Seams", FEER, 27 February 1971. This article incorporated material provided by John Slimming, subsequently Director of the Information Services 280 Notes to Pages 150-153 Department, who had been involved in the search for relevant documents in the case. 52. The department's attempt to avoid a radical attack on corruption can be found in its exchanges with the Colonial Secretariat recorded in Hong Kong Public Records Office HKRS-I-2648, "Corruption - Examination of ... in the Buildings Ordinance Office - PWD". Although the file shows that senior officials were irritated by the department's complacent obduracy, they took no steps to enforce a change in attitude. 53. Probably because most of the adverse comment was carried in the Chinese press, which was not easily accessible to expatriate officials. 54. Report of the Committee Appointed to Consider Certain Matters Concerning the Closure of the Chong Hing Mansion 1971, pp. 38-9. 55. Leo Goodstadt, "Management: Learning From the Saga of Paul Lee", FEER, 26 December 1975. 56. Lethbridge, Hard Graft in Hong Kong. Scandal, Corruption, the ICAC, pp. 167-72; Tung Chee Hwa, Chief Executive, Government Information Services (GIS hereafter), 23 June 2000. 57. For a thorough review of the evidence from criminal proceedings during this period, see David Faure, "Paying for Convenience: An Aspect of Corruption That Arises From Revenue-Spending", in Lee (ed.), Corruption and Its Control in Hong Kong. Situations up to the Late Seventies, pp. 141-6. 58. Lo, Corruption and Politics in Hong Kong and China, pp. 102-3. 59. Lo, Corruption and Politics in Hong Kong and China, pp. 110-2. 60. John P. Burns, "Civil Service Reform in the Hong Kong SAR", in Lau Siu-kai (ed.), The First Tung Chee-hwa Administration. The First Five Years of the Hong Kong Special Administrative Region (Hong Kong: Chinese University Press, 2002), p. 279. 61. GIS, 4 September and 8 November 1999, 9 January 2002. 62. John E. Strickland et al., Report of the Investigation Panel on Accountability (Piling Contract 166/1997 Shatin 14B Phase 2) (Hong Kong: Housing Authority, 2000); "Selby Report", LegCo Housing Panel, Recommendations ofInvestigation Panel on Staff Discipline in Tin Chung Court and Yuen Chau Kok Incidents (Housing Bureau, 18 December 2002). 63. Interview with Tony Kwok Man-wai, retiring ICAC Director of Operations, South China Morning Post (SCMPhereafter), 17 October 2002. 64. James Wu Man-hon, Hong Kong Hansard, 27 October 1976, p. 91. 65. Lo Shiu-hing, "Anti-Corruption and Crime", in Nyaw Mee-kau and Li Si-ming (eds.), The Other Hong Kong Report 1996 (Hong Kong: The Chinese University Press, 1996), p. 160. 66. See, for example, the views discussed byJohn P. Powelson, Institutions ofEconomic Growth. A Theory ofConflict Management in Developing Countries (Princeton: Princeton University Press, 1972), pp. 181-2 and David Osterfeld, Prosperity Versus Planning. How Government Stifles Economic Growth (New York: Oxford University Press, 1992), Chapter 9. 67. Peter Bauer, From Subsistence to Exchange and Other Essays (Princeton: Princeton University Press, 2000), p. 111. 68. The practical obstacles to enforcement were identified byJoe England and John Rear, Chinese Labour Under British Rule. A Critical Study ofLabour Relations and Law in Hong Kong (Hong Kong: Oxford University Press, 1975), pp. 141-2, 147, 1934 ,312. Notes to Pages 153-157 281 69. Securities Review Committee, The Operation and Regulation ofthe Hong Kong Securities Industry (Hong Kong: Government Printer, 1988), p. 231. 70. Frank H. H. King, The Hong Kong Bank in the Period ofDevelopment and Nationalism, 1941-1984. From Regional Bank to Multinational Group (Cambridge: Cambridge University Press, 1991), pp. 345. 71. Schenk, Hong Kong as an International Financial Centre. Emergence and Development 1945-65, p. 92. 72. The authoritative account of the background to this curious trade is Schenk, Hong Kong as an International Financial Centre. Emergence and Development 1945-65, pp. 95-107. Also very informative is P. H. M.Jones, "Phantom Gold", FEER, 30 April 1970. Macao's role only ended in 1970. The analysis here owes a great deal to briefings by R. J. Brereton formerly of the Hong Kong Government's Economic Branch. See also Leo Goodstadt, "Hong Kong's Twilight Economy", Euromoney (July 1979), pp. 133-7. 73. Michael G. vVhisson, Under the Rug: The Drug Problem in Hong Kong (A Study in Applied Sociology) (Hong Kong: Hong Kong Council of Social Service, 1965), p. 91. 74. Mark S. Gaylord, "The Chinese Laundry: International Drug Trafficking and Hong Kong's Banking Industry", in Harold H. Traver and Mark S. Gaylord (eds), Drugs, Law and the State (Hong Kong: Hong Kong University Press, 1992), p. 90. 75. GIS, 4July 1999; David Carse, Deputy Chief Executive, Hong Kong Monetary Authority, GIS, 15 September 1999. 76. Hong Kong Annual Departmental Report by the Director of Commerce and Industry for the Financial Year 1951-2 (Hong Kong: Government Printer, n.d.), pp. 1-2. 77. See the comments of Suzanne Berger and Richard K Lester (eds), Made By Hong Kong (Hong Kong: Oxford University Press, 1997), pp. 152, 163. 78. GIS, 6 August 1997, 9 August 1999; Chau Tak-hay, Secretary for Trade and Industry, GIS, 2 May 1998. 79. On the Inland Revenue Department, see Director of Audit, Audit examination of the tax returns ... represented by J Enterprise Secretarial and Taxation Ltd (Hong Kong: SAR Government, 1999); GIS, 25 September 2000. 80. J. D. (later SirJames) McGregor, Hong Kong Hansard, 1 December 1993, p. 1199. 81. This is evident from the care with which the Legislative Council handled the investigation and from the way it presented its report. See Selina Chow, Hong Kong Hansard, 2 November 1994, pp. 646-8. 82. A list of judicial deficiencies and legal scandals has been compiled by Ming K Chan, "The Imperfect Legacy: Defects in the British Legal System in Colonial Hong Kong", University ofPennsylvania Journal ofInternational Economic Law, Vol. 18, No. 1 (Spring 1997). 83. Even when these anxieties were endorsed by a member of the Executive Council. Emily Lau, "Hongkong: Jobs for the Old Boys: Civil Servants' Moves to Private Sector Draw Criticism", FEER, 22 January 1987. 84. Lau Siu-kai, "Attitudes Towards Political and Social Authorities", in Lau Siu-kai et al. (eds), Indicators ofSocial Development: Hong Kong 1999 (Hong Kong: Hong Kong Institute of Asia-Pacific Studies, 2001), p. 59. 85. For a full and very robust account of the Hong Kong Standard case, see Elise Leung, Secretary for Justice, GIS, 4 February 1999. 86. Details of the Hong Kong Police Force's investigation and legislators' scepticism were recorded in LegCo Panel on Security, Minutes ofspecial meeting ... 16January 282 Notes to Pages 157-163 2001 (LC Paper No. CB(2) 1481/01-02(08)), pp. 8-9. See also SCMP, 9 February 2002. 87. Special Finance Committee Minutes (Legislative Council, 23 March 2001), pp. 134-5. 88. Hong Kong Economic Journal, 26 July and 11 August 2004. The raids followed a request for investigation by the Court of Appeal (GIS, 26 July 2004). 89. The rating for the judiciary was 53 percent, barely better than the police force, while the Social Welfare Department stood at only 50 percent. Ho Kwok-leung, "Popular Support for Effective Governance", in Lau et al. (eds), Indicatars ofSocial Development: Hong Kong 1999, pp. 44-5. 90. The polling evidence is provided by Lau Siu-kai, "Socio-economic Discontent and Political Attitudes", in Lau Siu-kai et al. (eds), Indicatars ofSocial Development: Hong Kong 2001 (Hong Kong: Hong Kong Institute of Asia-Pacific Studies, 2003), pp. 56,62. CHAPTER VIII 1. Jon Halliday, "Hong Kong: Britain's Chinese Colony", New Left Review, No. 87-8 (September-December 1974), pp. 93-4. 2. This process is summed up by Lau Chi Kuen, Hong Kong's Colonial Legacy (Hong Kong: Chinese University Press, 1997), pp. 88-93. 3. A summary of the leading British firms and their business circumstances just as the full threat of Chinese competition emerged can be found in Paul Wilson, "The Old China Traders. Hong-Watching to See Which Way They'll Go", Far Eastern Economic Review (FEER hereafter), 12January 1979. 4. South China Marning Post (SCMP hereafter), 21 April 1996. 5. See, for example, Robert Bickers, Britain in China. Community, Culture and Colonialism 1900-1949 (Manchester: Manchester University Press, 1999), pp. 125 ,76-8. 6. The analysis is particularly indebted to Bickers, Britain in China. Community, Culture and Colonialism 1900-1949, pp. 95-7,115-48,170-94,220-1. 7. For a fuller account, see W. K. Chan, The Making ofHong Kong Society. Three Studies of Class Formation in Early Hong Kong (Oxford: Clarendon Press, 1991), pp. 48-62. 8. Helen F. Siu, "Hong Kong: Cultural Kaleidoscope on a World Stage", in Wang Gungwu and Wong Siu-lun (eds), Towards a New Millennium: Building on Hong Kong's Strengths (Hong Kong: Centre of Asian Studies, 1999), pp. 190-2. 9. See Frances Wood, No Dogs and Not Many Chinese. Treaty Port Life in China 18431943 (London: John Murray, 1998), p. 254. 10. N. J. Miners, The Government and Politics of Hong Kong (Hong Kong: Oxford University Press, 1998), p. 50, f.n. 6. 11. Chan Cheuk-wah, The Myth ofHong Kong's Laissezjaire Economic Governance (Hong Kong: Hong Kong Institute ofAsia-Pacific Studies, 1998), pp. 12-3,25-7,39. Chan records that he had been unable to locate any documentary evidence of such an instruction or of such a relationship between colonial officials and their business compatriots. 12. John Rear, "One Brand of Politics", in Keith Hopkins (ed.), Hong Kong: The Industrial Colony (Hong Kong: Oxford University Press, 1971), p. 79. 13. Jonathan Dimbleby, The Last Governor. Chris Patten & the Handover of Hong Kong (London: Little Brown & Co, 1997), pp. 225-30. Notes to Pages 163-168 283 14. Just as they were still invited to Beijing to meet leading members of the Chinese government in the post-colonial era. 15. Private information from Hutchison Europe, 22 November 1990. The Hutchison representative did not join in the attacks. 16. Enbao Wang, Hong Kong, 1997. The Politics of Transition (Boulder: Lynne Rienner Publishers, 1995), p. 184. This popular perception was not well-founded. 17. Lo Shiu-Hing, "The Chief Executive and Business: A Marxist Class Perspective", in Lau Siu-kai (ed.), The First Tung Chee-hwa Administration. The First Five Years of the Hong Kong Special Administrative Region (Hong Kong: Chinese University Press, 2002), p. 302. 18. The beneficiaries were the Hongkong & Kowloon Wharf and Godown Company. Christine Holgate, "Air and Water Gates", FEER, 5 July 1962. 19. This company, Hong Kong Air Cargo Terminals Ltd (HACTL) subsequently invited China National Aviation Corporation (CNAC) to participate, and when the new airport opened after the British departure, HACTL no longer enjoyed a monopoly. Leonard K Cheng and Changqi Wu, Competition Policy and the Regulation ofBusiness (Hong Kong: City University Press of Hong Kong, 1998), pp. 200-2. 20. Alex H. Choi, "State-Business Relations and Industrial Restructuring", in Tak-wing Ngo (ed.), Hong Kong's History. State and Society Under Colonial Rule (London: Routledge, 1999), pp. 144, 150, 154. 21. Report of the Commission ... to Enquire into the Causes and Effects of the Present Trade Recession ... (Hong Kong: Noronha & Co., 1935), pp. 74,79,81,86. 22. The principal lobbyist in the first two post-war decades was, ironically, a Fujianese, Wong Tok-sau, long-term President of the Chinese Manufacturers Association. See "Notes of the Week Hongkong Industry Problems", FEER, 9 October 1952; Derek Davies, "To Speak With One Voice", FEER, 6June 1963. 23. Wong Siu-lun, Emigrant Entrepreneurs. Shanghai Industrialists in Hong Kong (Hong Kong: Oxford University Press, 1988), p. 89. 24. Hong Kong Public Records Office HKRS163-1-2299, "Industrial Bank Committee, Proceedings of ... ", (21) letter from Chinese Manufacturers' Association, 2 April 1959; (41) letter from Hong Kong Federation of Industries Working Party, 14 September 1959; (43) letter from Hong Kong General Chamber of Commerce, 22 September 1959; "Report of the Hong Kong Industrial Bank Committee,June 1960", pp. 16-7. 25. C. E. M. Terry, Hong Kong Hansard, 20 March 1957, p. 61. 26. Hong Kong Hansard, 16 March 1960, p. 93. 27. Kayser Sung, "Textile Alliance", FEER, 24 May 1962; "Men "\Tho Make Hongkong: 20th Century Taipan", FEER, 30 May 1963; Derek Davies, "To Speak With One Voice", FEER, 6 June 1963; Derek Davies, "Federatation Feelings", FEER, 4 June 1964. 28. Hong Kong Hansard, 26 March 1958, p. 119; 16 March 1960, pp. 88-9. 29. Sen San, "Traveller's Tales", FEER, 24 August 1961. His father had been equally outspoken on the same subject in the 1950s. Robin Hutcheon, Shanghai Customs. A 20th Century Taipan in Troubled Times (Edgecliff: Galisea Publications, 2000), p. 204. 30. A. G. Clarke, Hong Kong Hansard, 24 February 1960, pp. 63-4. 31. Kevin Rafferty, City on the Rocks. Hong Kong's Uncertain Future (London: Viking, 1989), p. 288. 284 Notes to Pages 168-173 32. SCMP, 17 July 2000; interview with David Eldon, Chairman HSBC Asia Pacific, SCMP, 19 April 1999. 33. Anthony B. Chan, Li Ka-shing. Hong Kong's Elusive Billionaire (Hong Kong: Oxford University Press, 1996), p. 87; Frank H. H. King, The Hong Kong Bank in the Period ofDevelopment and Nationalism, 1941-1984. From Regional Bank to Multinational Group (Cambridge: Cambridge University Press, 1991), p. 71l. 34. Anthony Rowley, "A Twist to the Power Game. Hongkong-Chinese Interests Snap up a Huge Chunk of Hutchison Shares", FEER, 5 October 1979. 35. James Bartholomew, "A Super Success Story", FEER, 10-16July 1981. 36. Robin Hutcheon, First Sea Lord. The Life and Work of Sir Y. K. Pao (Hong Kong: Chinese University Press, 1990), pp. 95-100. 37. Leo Goodstadt, "The Weekend Wardley Won 'Wharf for Pao", Asian Banking (August 1980). Unsentimentality could work in the opposite direction. By 1986, Pao was no longer Deputy Chairman of the Hongkong Bank, and there was therefore no conflict of interest when he decided to rescue Standard Chartered Bank, the other major British bank in Hong Kong, from a hostile takeover in the United Kingdom. (Leo Goodstadt, "Heralding a New Era", Asiabanking (August 1986).) 38. For details of the Group's corporate strategy from 1961-84, see Christopher Wood, "Growing Pains and Contractions", "The 'Factors' Behind a Boardroom Battle" and 'Jardine's Search for Dowry. The Princely Hong Has Lost Its Imperial Inheritance", FEER, 15 March 1984. 39. Paul Silitoe, "Development: Land Lands a Record", FEER, 18-25 February 1982; Christopher Wood, "A Party Line - for Now", FEER, 7 April 1983 and "Companies: Days of Dynasty Again", FEER, 14 April 1983; Anthony Rowley, "A Utility's Useful Properties", FEER, 30 April-6 May 1982. 40. Anthony Rowley, "Companies: Land's Electric Shock", FEER, 31 January 1985. 41. Christopher Marchand, "Showing the Colours: Jardines Pays Heavily to Keep Its Hold on Hongkong Land", FEER, 19 May 1988; Gary Silverman, "Hong Kong 1997: Haunted House: Jardines Looks to Regain Its Old Agility", FEER, 15 May 1997. 42. Report of the Commission ofEnquiry into the Hong Kong Telephone Company Ltd. 1975 (Hong Kong: Government Printer, 1975), pp. 106-7 in particular. 43. Derek Davies, "The Keswicks Are Coming ... ", FEER, 3-9 April 1981. 44. To judge from Simon Prichard's reporting, SCMp, 17 May 2001. 45. Jardine Fleming Research, Hong Kong and China. Earnings and Economic Data (February 1997), p. 36. 46. See "Traveller's Tales", FEER, 6-12 August 1982. 47. Chen Muhua, State Councillor and Minister of Foreign Economic Relations and Trade, New China News Agency, 29 April 1983. 48. Leo Goodstadt, "The Flight From Hong Kong", Euromoney (July 1984), p. 99 and "The Bermuda Transfer", Asiabanking (May 1984), p. 36. 49. John Flowerdew, The Final Years of British Hong Kong. The Discourse of Colonial Withdrawal (London: Macmillan Press Ltd, 1998), pp. 124, 130. 50. Jonathan Karp "Island Hopping: Jardine Matheson Flees Hong Kong for Bermuda", FEER, 7 April 1994. 51. Dimbleby, The Last Governor. Chris Patten & the Handover ofHong Kong, pp. 248-9. 52. Mark Mitchell, "Living in the Past", FEER, 24 August 2000. 53. See Christopher Wood, "Swire Group: The Quiet Advance of an Empire", FEER, 4 August 1983. Notes to Pages 173-176 285 54. Hutcheon, Shanghai Customs. A 20th Century Taipan in Troubled Times, p. 191. 55. Carol Connell, "How the Environment of Hong Kong and the ASEAN Contributed to Jardine, Matheson & Company's External Organization for Opportunity Exploitation and Risk Reduction", Druid 2001 Winter Conference, Korsor, 18-20 January 2001, pp. 12-3. 56. Bickers, Britain in China. Community, Culture and Colonialism 1900-1949, pp. 171, 173-5, 180-2. 57. Among other associations, they were both graduates of St John's University, Shanghai. 58. Hong Kong Hansard, 20 November 1985, pp. 106-8. His successor as Financial Secretary tried to pacifY critics of this policy by making it seem less hostile to Cathay Pacific's potential competitors. Sir Piers Jacobs, Hong Kong Hansard, 18 February 1987, pp. 836-9. 59. For the background to Bremridge's decision, see Michael Westlake, "The Dragon Matures: Hongkong's Second Airline Changes Its Image", FEER, 18 November 1993; Emily Lau, 'Jobs for the Old Boys. Civil Servants' Moves to the Private Sector Draw Criticism", FEER, 22 January 1987. 60. SCMP, 22 and 27 October 2003. 61. In 1987, CITIC had purchased 12.5 percent of Cathay Pacific's shares (ironically, a substantial portion of which came from the Hongkong's Bank's disposal of a sizeable chunk of its holding). Jonathan Friedland, "Citic Seizes Hongkong's Commanding Heights at a Discount", FEER, 11 January 1990; Michael Westlake, "Cathay Pacific and Citic Take Control. Out ofthe Clouds", FEER, 25January 1990 and "A Wing and a Prayer. More Cathay Pacific Shares Change Hands", FEER, 9 May 1996. 62. "Cathay Pacific Boarding for Beijing", Economist, 4 May 1996; Financial Times, 29 January 1997; Asian Wall StreetJournal, 30 January 1997. 63. The original scepticism about the business rationale for these acquisitions seemed justified when China state investors started to pull out of the two utilities in 1999 after the British departure. Financial Times, 8 July 1999 and SCMP, 30 August 1999. 64. Note the example of the Rong family cited by Wong, Emigrant Entrepreneurs. Shanghai Industrialists in Hong Kong, p. 127. 65. Shiona Airlie, Thistle and Bamboo. The Life and Times of SirJames Stewart Lockhart (Hong Kong: Oxford University Press, 1989), p. 57. 66. King, The Hong Kong Bank in the Period ofDevelopment and Nationalism, 1941-1984. From Regional Bank to Multinational Group, p. 684. 67. Including the Hong Kong Electric Company, which did not arouse the same hostility because it supplied Hong Kong Island, where manufacturing growth was more limited and electricity charges were not such a sensitive business cost. 68. Report of the Electricity Supply Companies Commission (Hong Kong: Government Printer, 1959), pp. 15-7,20,24,30-1. 69. Claude B. Burgess, Colonial Secretary, Hong Kong Hansard, 23 March 1960, p. 146. 70. This tactic is plain enough from the official files, though not quite explicit. Not even questions in the British Parliament made any difference. The official record can be found in Hong Kong Public Records Office HKRSI63-1-2267/2268, "Public Utilities-Policy regarding the control of ... ". These files have been heavily sanitized. 71. This account draws extensively on Nigel Cameron, POWER. The Story ofChina Light 286 Notes to Pages 177-183 (Hong Kong: Oxford University Press, 1982), pp. 183-205. See also Pun-lee Lam, The Scheme ofControl on Electricity Companies (Hong Kong: Chinese U niversity Press, 1996), pp. 4-10. 72. Joseph S. K Wu, "Entrepreneurship", in H. C. Y Ho and L. C. Chau (eds), The Economic System ofHong Kong (Hong Kong: Asian Research Service, 1988), p. 164. 73. "A return based on average net fixed assets does not give any incentive to the Company to operate efficiently, and in fact it is permitted to operate inefficiently in that it can purchase fixed assets, whether or not they are profitably used, or indeed used at all, but the Company would nevertheless be entitled to earn a return on such assets". Report of the Commission of Enquiry into the Hong Kong Telephone Company, p. 125; Allen Lee Peng-fei, Hong Kong Hansard, 24 November 1982, pp. 272-4; Frederick Fung, Hong Kong Hansard, 13 November 1991. 74. Public Accounts Committee, Report on Report No. 33A ofthe Director ofAudit (Hong Kong: Legislative Council, 1999), p. 63. 75. Details of the civil service regulators' past failures and the new determination to bring the power companies under effective control can be found in Economic Services Branch, Legislative Council Panel on Economic Service. Interim Review ofScheme of Control Arrangements, 26 October and 6 November 1998; and Chief Secretary's Statement at Public Accounts Committee Hearing, Government Information Services, 4 October 1999. 76. Li Peng, former Prime Minister and National People's Congress Chairman, New China News Agency, 12 April 2000. 77. These rankings are subject to considerable fluctuations. Five years later, the Kadoories ranked fourth among Hong Kong's billionaires and the Swires tenth, while the Keswicks remained unlisted. "The World's Richest People", Forbes, 22 October 1997 and 18 March 2002. CHAPTER IX 1. Frank H. H. King, The Hong Kong Bank in the Period ofDevelopment and Nationalism, 1941-1984. From Regional Bank to Multinational Group (Cambridge: Cambridge University Press, 1991), pp. 561,664-9,916-9 in particular. For the bank's attempts to adapt the culture and its presentation for the post-colonial era, see Steven Irvine, "The Culture That Powers Hongkong Bank", Euromoney (February 1997) , pp. 4450 . 2. King, The Hong Kong Bank in the Period ofDevelopment and Nationalism, 1941-1984. From Regional Bank to Multinational Group, pp. 306-10. 3. This is illustrated, rather touchingly, byJ. F. Marshall, Whereon the Wild Thyme Blows. Some Memoirs of Service with the Hongkong Bank (Grayshott: Token Publishing Limited, 1986), pp. 107-8, 111-4. 4. Catherine R. Schenk, Hong Kong as an International Financial Centre. Emergence and Development 1945-65 (London: Routledge, 2001), p. 147. The role of the Shanghainese in changing expatriates' views towards the Chinese business community will be discussed in the next chapter. 5. Kevin Rafferty, City on the Rocks. Hong Kong's Uncertain Future (London: Viking, 1989), pp. 287-8. 6. The bank's policies on recruiting and managing staff are detailed throughout King, The Hong Kong Bank in the Period ofDevelopment and Nationalism, 1941-1984. From Regional Bank to Multinational Group. Notes to Pages 183-188 287 7. King, The Hong Kong Bank in the Period ofDevelopment and Nationalism, 1941-1984. From Regional Bank to Multinational Group, pp. 364-72. 8. Oliphant's contributions are summarized in King, The Hong Kong Bank in the Period ofDevelopment and Nationalism, 1941-1984. From Regional Bank to Multinational Group, pp. 350-1, 370, 621-5, 704-5. 9. Schenk, Hong Kong as an International Financial Centre. Emergence and Development 1945-65, pp. 69, 146. 10. In a personal interview at the time of the takeover, Sir Lee Quo-wei appeared to have had no doubts on this score. See also Gillian Chambers, Hang Seng. The Evergrowing Bank (Hong Kong: n.p., 1991), p. 72. 11. Robin Hutcheon, First Sea Lord. The Life and Worn of Sir Y. K. Pao (Hong Kong: Chinese University Press, 1990), pp. 31, 33, 43-5; Financial Times (FThereafter), 3 August 2002. This obituary is mistaken in claiming that Saunders supported the acquisition of the Hang Seng Bank. 12. King, The Hong Kong Bank in the Period ofDevelopment and Nationalism, 1941-1984. From Regional Bank to Multinational Group, pp. 239-40, 336-9. 13. Philip Bowring, "Hongkong Wary of Controls", Far Eastern Economic Review (FEER hereafter), 2 December 1977; Anthony Ockenden, Banking Commissioner, Government Information Services (GIS hereafter), 22 June 1978; Y. C. Jao, "The Monetary System and the Future of Hong Kong", in Y. C. Jao et al. (eds), Hong Kong and 1997. Strategies for the Future (Hong Kong: Centre of Asian Studies, 1985), p. 387; Anthony Rowley, '''Moral Suasion' Versus Control", FEER, 29 September 1978. 14. Schenk, Hong Kong as an International Financial Centre. Emergence and Development 1945-65, Chapter 3; P. H. M.Jones, "Hongkong Flush With Money", FEER, 13-19 April 1969. 15. The background to the data presented in these two tables is explained in the Statistical Appendix. Because of rounding, the percentages in the tables may not add up to 100. 16. Seth Lipsky, "Hongkong's Legislation. Retreating From Laissez-faire", FEER, 13 September 1974; Anthony Rowley, "Hongkong's Unhappy Neighbourhood. Foreign Banks Resenting the Local Cartel Are Pressing for Greater Government Control", FEER, 2 March 1979. 17. And 41 percent in 1987. Y. c.Jao, "The Role of the Hongkong Bank", in Richard Yan-Ki Ho et al. (eds), The Hong Kong Financial System (Hong Kong: Oxford University Press, 1992), p. 49. Note the earlier, slightly different estimates this distinguished banking economist offered in Y. C. Jao (ed.), Hong Kong's Banking System in Transition: Problems, Prospects and Policies (Hong Kong: Chinese Banks Association Ltd, 1988), p. 102. His estimates are based on unpublished internal bank data. 18. Quoted in Leonard K. Cheng and Changqi Wu, Competition Policy and the Regulation of Business (Hong Kong: City University Press of Hong Kong, 1998), p. 26. This combined figure for the Hongkong and Hang Seng Banks is surprisingly high. 19. "Sandberg and the Market", FEER, 23 September 1972; Stewart Dalby, "Will the bubble burst?", FEER, 2 December 1972. 20. The chaotic conditions and the sluggish pace of reform have been summarized by Frederick Ma, Secretary for Financial Services and the Treasury, GIS, 19 November 2002. 288 Notes to Pages 188-190 21. See Leo Goodstadt, "Controls Come to the Rock of Laissez-faire", Euromoney (April 1979), pp. 121-3; "Whatever the Reasons, Hong Kong Keeps Growing", Euromoney (July 1982), pp. 134-7; "Why Hong Kong Still Trusts Interests Rates", Asian Banking (January 1982), p. 56. 22. Tom Welsh quoted in Goodstadt, Asian Banking (January 1982), p. 56. 23. Michael Sandberg quoted in Andrew Davenport, "The New Helmsman: A Word From the Top", FEER, 8 April 1977. 24. Tony Latter, Deputy Chief Executive, Hong Kong Monetary Authority 1998-2002 and Deputy Secretary for Monetary Mfairs 1982-85, makes the relationship between the bank and the government sound somewhat more harmonious in this period than either side reported at the time. Nevertheless, he acknowledges the underlying tensions between the two parties. "Hong Kong's Exchange Rate Regimes in the Twentieth Century: The Story of Three Regime Changes", Hong Kong Institute for Monetary Research Seminar Paper, 5 February 2004, pp. 16-8. 25. The Hongkong Bank's view of its encounters with the government is recorded somewhat elliptically in King, The Hong Kong Bank in the Period ofDevelopment and Nationalism, 1941-1984. From Regional Bank to Multinational Group, pp. 338, 341, 615,634-5 in particular. 26. Frank H. H. King, Money in British East Asia (London: HMSO, 1957), p. 120. 27. SirJohn Cowperthwaite, Financial Secretary, Hong Kong Hansard, 1 March 1967, p. 83; 25 February 1970, p. 363. 28. Schenk, Hong Kong as an International Financial Centre. Emergence and Development 1945-65, pp. 64-6; H. J. Tomkins, Report on the Hong Kong Banking System and Recommendations for the Replacement of the Banking Ordinance 1948 (Hong Kong: Government Printer, 1962). 29. Bank executives gave background briefings that resulted in the sort of misguided criticism expressed in L. F. Goodstadt, "The Corridors of Power", FEER, 26 May1 June 1968. 30. The government's response to the 1972 devaluation in terms of the Hong Kong dollar is summarized by Y C. Yao and Frank H. H. King, Money in Hong Kong. Historical Perspective and Contemporary Analysis (Hong Kong: Centre ofAsian Studies, 1990), pp. 59-60. 31. "The stock market has played a surprisingly small part in the finance of industry ... This seems a decided weakness in Hong Kong's financial structure." Report of the Industrial Bank Committee (Hong Kong Government, January 1960, mimeo), p. 6. 32. Leo Goodstadt, "Hong Kong's Mass Transit Railway Charges to Profit", Asia Banking (November 1982), p. 44; Euromoney (October 1979), p. 77. 33. Leo Goodstadt, "How Hong Kong is moving towards banking controls", Euromoney (July 1980), p. 84. 34. Estimates of Gross Domestic Product 1961 to 1994 (Hong Kong: Census and Statistics Department, 1995), p. 20. The technical background is set out lucidly in Y C. Jao, "Monetary System and Banking Structure", in H. C. Y Ho and L. C. Chau (eds), The Economic System ofHong Kong (Hong Kong: Asian Research Service, 1988), pp. 44-6. See also Goodstadt, Euromoney (July 1980), pp. 84-5 and "Temporary Respite for the Hong Kong Dollar", Euromoney (December 1981), p. 163. 35. Jao in Ho and Chau (eds), The Economic System ofHong Kong, pp. 58-60; Christopher Wood, "Companies: Wardley Takes Cover", FEER, 17 March 1983. The flavour of Notes to Pages 190-195 289 the period is well conveyed by the materials presented in Philip Bowring and Robert Cottrell, The Caman File (Hong Kong: Far Eastern Economic Review Ltd, 1984). 36. John Gray, "Monetary Management in Hong Kong: The Role of the Hongkong and Shanghai Banking Corporation Limited", in Proceedings of the Seminar on Monetary Management Organized by the Hongkong Monetary Authority on 18-19 October 1993 (Hong Kong: Hong Kong Monetary Authority, n.d.), p. 60. 37. Jao inJao et al. (eds), Hong Kong and 1997. Strategies for the Future, p. 394, f.n. 33. 38. On these issues, seeJao in Ho et al. (eds), The Hong Kong Financial System, pp. 435 ; Joseph Yam, "The Development of Monetary Policy in Hong Kong", in Y C. Jao (ed.), Monetary Management in Hong Kong. The Changing Rnle of the Exchange Fund (Hong Kong: The Chartered Institute of Bankers, 1991), pp. 57-8. 39. Rafferty, City on the Rncks. Hong Kong's Uncertain Future, pp. 235-8. This author gives an excellent account of the various views involved. 40. He managed to aggravate the currency crisis in 1983. SeeJao and King, Money in Hong Kong. Historical Perspective and Contemporary Analysis, p. 74. 41. Robert Fell, Crisis and Change. The Maturing ofHong Kong's Financial Markets (Hong Kong: Longman, 1992), pp. 191-2. 42. The technicalities are summarized in Joseph Yam, Review of Currency Board Arrangements in Hong Kong (Hong Kong: Hong Kong Monetary Authority, n.d.), pp.26-7. 43. Tony Latter, "Who or 'What Determines Monetary Policy in Hong Kong?", Hong Kong Monetary Authority Quarterly Bulletin (May 2002), Issue No. 31, p. 56. 44. For a summary of these changes, seeJoseph Yam, "Central Banking and Monetary Policy in Hong Kong", in Hong Kong Monetary Authority, The Practice of Central Banking in Hong Kong (Hong Kong: Hong Kong Monetary Authority, 1994), Annex B. 45. This account comes from British diplomats who were present at the encounter with Deng in July 1984. The published version of Deng's remarks did not name the Hongkong Bank directly. Deng Xiaoping, On the Question ofHong Kong (Hong Kong: New Horizon Press, 1993), p. 14. 46. People's Daily, 5 April 2001; South China Morning Post (SCMP hereafter), 4 and 26 April 2001. 47. FT, 9 August 2002. The impact of his choice of language in Hong Kong can be gauged from the leading English-language newspaper's decision to use asterisks in reporting the offending epithet. SCMP, 7 August 2002. 48. Leo Goodstadt, "Hong Kong: The Fight for a Market Share", Euromontry (July 1980), p. 96. The Standard Chartered Bank was also given preferential treatment as a note-issuing bank but on a smaller scale. 49. Denise Yue, Secretary for the Treasury, GIS, 9 May 2001. 50. In 2000, for example, the Hongkong Bank had tendered successfully to provide the United States dollar clearing facility established by the Hong Kong Monetary Authority. GIS, 9 March 2000. CHAPTER X 1. Data on expatriates and on the Shanghainese community and its characteristics are summarized in the Statistical Appendix. 290 Notes to Pages 195-197 2. The first Chinese ChiefJustice, Sir Yang Ti-liang; the first Chinese Chief Secretary and Head of the Civil Service, Anson Chan; and the most distinguished member of the Executive and Legislative Councils, Baroness Dunn. Although the first and the last could claim that their families hailed originally from Guangdong province, all three were popularly labelled as "Shanghainese". 3. Peter T. Y Cheung, "The Political Context of Shanghai's Economic Development", in Y M. Yeung and Sung Yun-wing (eds), Shanghai Transformation and Modernization Under China's Open Policy (Hong Kong: Chinese University Press, 1996), pp. 6675 . 4. State Statistical Bureau, State Statistical Yearbook 1998 (Beijing: China Statistical Publishing House, 1998), pp. 65,838. 5. See Y M. Yeung, "Introduction", pp. 2, 17-8 and Wong Siu-Iun, "The Entrepreneurial Spirit: Shanghai and Hong Kong Compared", p 43 both in Yeung and Sung (eds), Shanghai Transformation and Modernization Under China sOpen Policy. Joseph Yam, Hong Kong Monetary Authority Chief Executive, Government Information Services (GIS hereafter), 4 September 2000; China Daily Hong Kong edition, 18 May 2002. 6. As Wong Siu-Iun notes, the term "Shanghainese" is somewhat misleading because it refers notjust to those hailing from the city proper, but from a variety of districts in Jiangsu and other provinces. "Transplanting Enterprises in Hong Kong", in Wang Gangwu and Wong Siu-Iun (eds), Dynamic Hong Kong: Business & Culture (Hong Kong: Centre of Asian Studies, 1997), p. 262. 7. The comparative data are convincingly in Hong Kong's favour and are summarized in Made in PHD: The Changing Face of Hong Kong Manufacturers (Hong Kong: Federation of Hong Kong Industries, 2003), Part II & Full Report, p. 65. 8. At first, they preferred to make the case for Hong Kong through comparisons of the Pearl River Delta with the Yangtze River Delta. e.g., Donald Tsang Yam-kuen, Chief Secretary, GIS, 24 October and 22 November 2001. A good example of a toughening attitude on their part can be seen in Antony Leung, Financial Secretary, China Daily Hong Kong edition, 12 September 2001 and GIS, 28 September 2002. 9. Lord Charles Beresford, The Break-up ofChina With an Account ofIts Present Commerce, Currency, Waterways, Armies, Railways, Politics and Future Prospects (London: Harper & Brothers, 1899), p. 481. 10. Evan Luard, Britain and China (Baltimore: The John Hopkins Press, 1962), pp. 130, 153. 11. Wong in Yeung and Sung (eds), Shanghai Transformation and Modernization Under Chinas Open Policy, p. 26. 12. Eiichi Motono, Conflict and Cooperation in Sino-British Business, 1860-1911. The Impact of the Pro-British Commercial Network in Shanghai (London: Macmillan, Press Ltd, 2000), pp. 115-6,167-70. 13. A good example ofthe esteem enjoyed by this group of Shanghainese is presented in Frank H. H. King, The Hongkong Bank in the Period ofDevelopment and Nationalism, 1941-1984. From Regional Bank to Multinational Group (Cambridge: Cambridge University Press, 1991), pp. 351-2. Copious examples of Western arrogance in Shanghai and Chinese resistance are recorded colourfully throughout Stella Dong, Shanghai: The Rise and Fall of a Decadent City (New York: William Morrow, 2000). 14. Mark Elvin, "Foundations for the Future: The Building of Modern Machinery in Notes to Pages 197-201 291 Shanghai After the Pacific War", in Ross Garnaut and Yiping Huang (eds), Growth Without Miracles. Readings on the Chinese Economy in the Era ofReform (Oxford: Oxford University Press, 2001), p. 56. 15. Calculated from Nai-ruenn Chen, Chinese Economic Statistics. A Handbook for Mainland China (Edinburgh: Edinburgh University Press, 1967), pp. 210, 214. On the impact of hostilities on China's manufacturing sector, see "Output of Major Industrial Products in Comparison with Peak Year before Liberation", in State Statistical Bureau, Statistical Yearbook of China 1981 (Hong Kong: Economic Information & Agency, 1982), p. 251. 16. A Study Group of the Royal Institute of International Affairs, Political and Strategic Interests ofthe United Kingdom. An Outline (London: Oxford University Press, 1939), p.218. 17. On the historical roots of these attitudes, see Lee Pui-Tak, "Chinese Merchants in the Hong Kong Colonial Context, 1840-1910", in Wong Siu-lun and Toyojiro Maruya (eds), Hong Kong Economy and Society: Challenges in the New Era (Hong Kong: Centre of Asian Studies, 1998), pp. 63-6. 18. Alex H. Choi, "State-Business Relations and Industrial Restructuring", in Tak-Wing Ngo (ed.), Hong Kong's History. State and Society Under Colonial Rule (London: Routledge, 1999), p. 155. 19. Wong Siu-lun, Emigrant Entrepreneurs. Shanghai Industrialists in Hong Kong (Hong Kong: Oxford University Press, 1988), pp. 126-31. His focus is on the spinning industry but his conclusions are regarded as applying to the Shanghai business immigrants as a whole. 20. Grantham's proposal is recorded in Hong Kong Public Records Office HKRS1631 -164, "Legislative Council - Procedure and Appointments", M. 95, Governor to Colonial Secretary, 7January 1956. The reasons for not pursuing U Tat Chee's appointment are not explained in this file but may be reasonably surmised from Grantham's pronouncements on Shanghainese virtues quoted later in this chapter. The colonial administration continued to make considerable use of U. 21. T. Wing Lo, Corruption and Politics in Hong Kong and China (Buckingham: Open University Press, 1993), pp. 130-4. 22. Robert Fell, Crisis and Change. The Maturing ofHong Kong's Financial Markets (Hong Kong: Longman, 1992), pp. 36,218-9. 23. Wong, Emigrant Entrepreneurs. Shanghai Industrialists in Hong Kong, p. 52. 24. King, The Hongkong Bank in the Period ofDevelopment and Nationalism, 1941-1984. From Regional Bank to Multinational Group, p. 352. 25. Hong Kong Annual Report 1956 (Hong Kong: Government Printer, 1956), p. 11. This source refers to the Shanghainese as from the "north", which is a common Cantonese - though inaccurate - label for them. Earlier accounts of industrial progress had been more objective. Annual Report on Hong Kong for the Year 1948 (Hong Kong: Government Printer 1949), p. 62; Annual Report on Hong Kong for the Year 1949 (Hong Kong: Government Printer, 1950), p. 44. 26. e.g., Lo Shiu-hing, "Hong Kong: post-colonialism and political conflict", in Richard Robison and David S. G. Goodman (eds), The New Rich in Asia. Mobile Phones, McDonalds and Middle-Class Revolution (London: Routledge, 1996), p. 164. 27. The sources and background for the data on the Shanghainese community are described in the Statistical Appendix. 28. Alexander Grantham, Via Ports. From Hong Kong to Hong Kong (Hong Kong: Hong Kong University Press, 1965), pp. 104-5. 292 Notes to Pages 201-204 29. Wong Siu-lun, "The Migration of Shanghainese Entrepreneurs to Hong Kong", in David Faure et al. (eds), From Village to City. Studies in the Traditional Rnots ofHong Kong Society (Hong Kong: Centre of Asian Studies, 1984), p. 206. 30. Tung Chee Hwa, Chief Executive, (himself from the Shanghai region), "Through Leverage on Complementary Strengths to Mutual Prosperity", GIS, 31 October 2003). 31. This case is argued powerfully in Tak-wing Ngo, "Industrial history and the artifice of laissezjaire colonialism", in Ngo (ed.), Hong Kong's History. State and Society Under Colonial Rule, pp. 128-35. British academics who highlighted the well-established industrial sector that thrived for decades before the arrival of the Shanghainese include Frank Leeming, Street Studies in Hong Kong (Hong Kong: Oxford University Press, 1977), pp. 8-9 and Frank Welsh, A History ofHong Kong (London: HarperCollins , 1993), p. 369. 32. Report of the Commission ... to Enquire Into the Causes and Effects of the Present Trade Recession ... (Hong Kong: Noronha & Co., 1935), p. 74. 33. H. A. Angus, Director of Commerce and Industry, "Industrial Developments", Far Eastern Economic Review (FEER hereafter), 27 October 1955. 34. This assertion was supported by estimates of industrial employment higher than the bare official statistics for the immediate post-war years. For example, "as many as 70,000 operatives" in knitting and weaving alone. Douglas M. Kendrick, Price Control and Its Practice in Hong Kong (Hong Kong: K. Weiss, 1954), pp. 150-1, 26l. 35. "Industrial Review", FEER, 7 April 1948. The sector had 600 factories in 1941, employing an average of 40 workers each. Douglas M. Kenrick, "The Economy of Hongkong (1841-1945)", FEER, 11 August 1949. 36. These estimates are only crude indicators. They are derived from the analysis of unpublished government trade data presented in Ronald Hsia, "Effects of Industrial Growth on Hong Kong Trade", Pakistan Development Review, Vol. II, No. 2 (Summer 1962), p. 585. At that period, "textile yarn, fabrics, made-up articles and related products" would have been Shanghainese-dominated, while "clothing" would have been produced mainly by Cantonese firms. See David R. Meyer, Hong Kong as a Global Metropolis (Cambridge: Cambridge University Press, 2000), pp. 1513 . 37. e.g., Benjamin K. P. Leung, Perspectives on Hong Kong Society (Hong Kong: Oxford University Press, 1996), p. 5. 38. Lee Wing On and Brian Hook, "Human Resources", in Brian Hook (ed.) Shanghai and the Yangtze Delta. A City Reborn (Hong Kong: Oxford University Press, 1998), p.126. 39. Li was from Guangdong province, but Chiuchow rather than Cantonese. 40. The resilience of this expectation of a return to the past is chronicled in A Foreign Trade Observer, "Prospects for Trade With China", FEER, 29 September 1955. 41. Hong Kong Public Records Office HKRS270-5-46, "Commercial and Industrial Development - Major Policy", enclosure (19), 28 October 1964. 42. The firm's history was summarized in "The China Engineers Ltd in China", FEER, 10 May 1956. 43. "Textile Mills in Shanghai", FEER, 1 October 1947. 44. W. C. Gomersall, "The China Engineers, Ltd. & The Textile Trade", in]. M. Braga (comp.), Hong Kong Business Symposium (Hong Kong: n.p., 1957), p. 513. 45. "Cotton Spinning in Hongkong", FEER, 21 September 1950; "Commercial Notes to Pages 204-208 293 Reports", FEER, 9 November 1950; "The Hongkong Cotton Mills Pool", FEER, 6 September 1951. 46. Aron Shai, The Fate of British and French Firms in China 1949-54. Imperialism Imprisoned (London: Macmillan, 1996), pp. 12, 22-3. 47. Evan Luard, Britain and China (Baltimore: The John Hopkins Press, 1962), pp. 132-7; William Barber, The Fall of Shanghai. The Communist Take-Over of 1949 (London: Macmillan London Ltd, 1979), pp. 226-7. 48. Zhong-ping Feng, The British Government's China Policy 1945-1950 (Keele: Ryburn Publishing, 1994), p. 157. 49. "The China Engineers Limited. Chairman's Report at the 17th Annual General Meeting", FEER, 21 September 1950; "Commercial Reports", FEER, 9 November 1950; "Business Report of the China Engineers Ltd", FEER, 25 January 1951. 50. "Notes of the Week: Trade Between China and Private British Trade Mission", FEER, 23 July 1953; "Hongkong Company Meetings", FEER, 20 May 1954; "Hongkong Notes", FEER, 10 February 1955; "Hongkong-China Trade", FEER, 10 May 1956; A Correspondent, "Last British Import-Export Firm in Shanghai Closes Down", FEER, 24 December 1959. 51. Our Industrial Staff, "Manufacturers of Hongkong. 12. Hong Kong Knitters Ltd", FEER, 18 February 1960. 52. "Traveller's Tales", FEER, 2 November 1961; Derek Davies, "Caribbean Hongkong", FEER, 27June 1963; "Sime Darby. Stake in China Engineers", FEER, 22 April 1972; "Investment. Clean-up at China Engineers", FEER, 7 March 1975; Susumu Awanohara, "Sime Darby's Problem of Face", FEER, 19 October 1979. 53. "Commerce and Industry of Hongkong in 1957", FEER, 5June 1958; Our Industrial Staff, "Dyeing and Finishing Improved Link in Hongkong Textile Production Chain", FEER, 12 March 1959; Kester Stone, "Mammoth Textile Merger", FEER, 5 July 1962. 54. Stone, FEER, 5 July 1962; Seth Lipsky, "Hongkong's Costly Project", FEER, 13 December 1974. 55. Andrew Davenport, "Investment. Caught in a Web of Expansion", FEER, 31 January 1975; Paul Wilson and Susumu Awanohara, "Investment. Faith, Hope and Heavy Losses", FEER, 1 September 1978. 56. "Wheelock Marden & Co. Ltd", FEER, 17 December 1953. On the Shanghai origins of the firm, see Robin Hutcheon, Shanghai Customs, A 20th Century Taipan in Troubled Times (Edgecliff: Galisea Publications, 2000). 57. Twenty Five Years ofthe Hongkong Cotton Spinning Industry (Hong Kong: Hong Kong Cotton Spinners Association, 1973), pp. 103-4; Hutcheon, Shanghai Customs, A 20th Century Taipan in Troubled Times, pp. 204, 223. 58. Paul Wilson, "The Old China Traders. Hong-Watching to See 'Which Way They'll Go", FEER, 12January 1979; Gary Coull, "The Wide World ofY. K Pao", FEER, 29 January-4 February 1982; Hutcheon, Shanghai Customs, A 20th Century Taipan in Troubled Times, p. 221. 59. Their importance can be gauged from the summary of their activities provided by Y C. Jao, "Hong Kong's Role in Financing China's Modernization", in A. J. Youngson (ed.), China and Hong Kong. The Economic Nexus (Hong Kong: Oxford University Press, 1983), pp. 30-8. 60. These Shanghai cadres were also less nervous about Western imperialist threats and thus more effective in their contacts with foreigners than China's professional 294 Notes to Pages 208-212 diplomats of that period to judge from Liu Xiaohong, China's Ambassadors: The Rise of Diplomatic Professionalism Since 1949 (Hong Kong: Hong Kong University Press, 2001), pp. 101-2. 61. This profile reflects a personal acquaintance with many of these bank executives, including Li Tsu-tsan (Nanyang Commercial Bank), P. L. Chen (Kincheng Banking Corporation), C. S. Yao (Sin Hua Trust and China Development Finance), Nelson Tsao (Sin Hua Trust) and Shu Tse-wong (Bank of China, Nanyang Commercial Bank). This last cadre showed similar talents without having enjoyed the others' educational advantages. 62. As recorded by the Shenzhen Tequ Baa (Shen Zhen Daily), 12 December 1996 and Wang Min (comp.), Yi Dai Chuan Wang Dong Jianhua (Beijing: Zhonghua Gongshang Lianhe Chubanshe, 1997), p. 31. The school was closed temporarily by the Hong Kong authorities in 1958 and permanently a decade later. New China News Agency, 26 August 1958 and 27 August 1968. 63. George Lauriat, "The Tung Dynasty", FEER, 23-29 April 1982; Nick Seaward, "The Tung Kin Gulf: Rescue Plans Call for the Stripping of OOHL's Public Assets", FEER, 5 December 1985; Guy Sacerdoti, "On Separate Tracks: Two Shipping Lines Negotiate With the Banks to Stay Afloat", FEER, 11 September 1986. 64. China's role in Tung's selection is overlooked in Jonathan Dimbleby, The Last Governor. Chris Patten & the Handover ofHong Kong, (London: Little Brown & Co, 1997), p. 324. 65. Parks M. Coble, "Chinese Capitalists and the Japanese. Collaboration and Resistance in the Shanghai Area, 1937-45", in Wen-hsin Yeh (ed.), Wartime Shanghai (London: Routledge, 1998), p. 79. 66. Note the different view presented in Wong, Emigrant Entrepreneurs. Shanghai Industrialists in Hong Kong, p. 191. CONCLUSIONS 1. Theodore Geiger, Tales of Two City-States: The Development Progress ofHong Kong and Singapore (Washington: National Planning Association, 1973), p. 146. 2. Even in propaganda intended for overseas consumption, though with a reference to "severe national oppression ... under British colonial rule." Liu Shuyong, An Outline History ofHong Kong (Beijing: Foreign Languages Press, 1997), p. 132. 3. Ronald Findlay and Stanislaw Wellisz, "Introduction", in Ronald Findlay and Stanislaw Wellisz (eds), The Political Economy ofPoverty, Equity, and Growth. Five Small Open Economies (New York: Oxford University Press, 1993), p. 13. 4. John Walden, Excellency, Your Gap is Showing! (Hong Kong: Corporate Communications Ltd, 1983), p.73. 5. Ambrose Yeo-chi King, "Administrative Absorption of Politics in Hong Kong: Emphasis on the Grass Roots Level", in Ambrose Y C. King and Rance P. L. Lee (eds), Social Life and Development in Hong Kong (Hong Kong: Chinese University Press, 1981), p. 129. 6. Predictions that this stability would erode in the final years of the twentieth century under the weight of serious conflicts either within the elite or between capital and labour did not materialize. See Lo Shiu-hing, The Politics ofDemocratization in Hong Kong (London: Macmillan Press Ltd, 1997), pp. 318-20. 7. See Siu-kai Lau, Society and Politics in Hong Kong (Hong Kong: Chinese University Notes to Pages 212-215 295 Press, 1982), pp. 7,9. However, a list of examples ofthe use made by the colonial administration of repressive legislation can be found in Jonathan S. Grant, "Cultural Formation in Postwar Hong Kong", in Lee Pui-tak (ed.), Hong Kong Reintegrating With China. Political, Cultural and Social Dimensions (Hong Kong: Hong Kong University Press, 2001), pp. 160-2. 8. Steve Tsang, "Government and Politics in Hong Kong: A Colonial Paradox", in Judith M. Brown and Rosemary Foot (eds), Hong Kong's Transitions, 1842-1997 (London: Macmillan Press Ltd, 1997), p. 66; Wang Gungwu, "Some Reflections on Hong Kong's Regional Role and Cultural Identity", in Leung Chi-keung et al. (eds), Hong Kong Dilemmas ofGrowth (Hong Kong: Centre of Asian Studies, 1980), p.652. 9. On unrest, see Benjamin K. P. Leung, "Social Inequality and Insurgency in Hong Kong", in Benjamin K. P. Leung and Teresa Y C. Wong (eds), 25 Years of Social and Economic Development in Hong Kong (Hong Kong: Centre ofAsian Studies, 1994), p. 191; Benjamin K. P. Leung, Perspectives on Hong Kong Society (Hong Kong: Oxford University Press, 1996), p. 148. On productivity and income distribution, seeJohn Dodsworth and Dubravko Mihaljek, Hong Kong, China. Growth, Structural Change, and Economic Stability During the Transition (Washington: International Monetary Fund, 1997), p. 6 and Hon-Kwong Lui, Income Inequality and Economic Development (Hong Kong: City University of Hong Kong Press, 1997), pp. 46-9. 10. Ng Chun-hung and Thomas W. P. Wong, "The Ethos of the Hong Kong People: Taking Stock in 1997", in Lau Siu-kai et al. (eds), Indicators of Social Development: Hong Kong 1997 (Hong Kong: Hong Kong Institute of Asia-Pacific Studies, 1999), p. 240; Tsang Wing Kwong, The Class Structure in Hong Kong (Hong Kong: Hong Kong Institute ofAsia-Pacific Studies, 1992), pp. 1-2,81, 84, 90; Tsang Wing-kwong, "Consolidation of a Class Structure: Changes in the Class Structure of Hong Kong", in Lau Siu-kai et al. (eds), Inequalities and Development. Social Stratification in Chinese Societies (Hong Kong: Hong Kong Institute of Asia-Pacific Studies, 1994), pp. 1145 . 11. Report of the Commission ... to Enquire into the Causes and Effects of the Present Trade Recession ... (Hong Kong: Noronha & Co., 1935), pp. 76-7, 79-82, 115. 12. On the pre-war period, see Chan Lau Kit-ching, From Nothing to Nothing. The Chinese Communist Movement and Hong Kong, 1921-1936 (Hong Kong: Hong Kong University Press, 1999), pp. 4-12,196-8. 13. Mao Tse-tung, Selected Military Writings (Peking: Foreign Languages Press, 1968), p.174. 14. Accessible accounts of the central leadership's direct role in deciding on Hong Kong issues and Hong Kong cadres' experiences include Xu Jiatun, Xu Jiatun XianggangHuiyilu (Taipei: Lianhebao, 1993); Lawrence C. Reardon, The Reluctant Dragon. Crisis Cycles in Chinese Foreign Economic Policy (Hong Kong: Hong Kong University Press, 2002); Wong Man Fong, China's Resumption ofSovereignty Over Hong Kong (Hong Kong: Hong Kong Baptist University, n.d.); Kam Yiu-yu, "DecisionMaking and Implementation of Policy toward Hong Kong", in Carol Lee Hamrin and Suisheng Zhao (eds), Decision-Making in Deng's China. Perspectives From Insiders (Armonk: M. E. Sharpe, 1995). 15. P. B. Harris, "The International Future of Hong Kong", International Affairs, Vol. 48, No.1 (January 1972), p. 62. Mao Zedong declined a request from Stalin to expel the British. Michael Yahuda, Hong Kong. China's Challenge (London: Routledge, 1996), p. 46. 296 Notes to Pages 215-219 16. Deng Xiaoping, On the Question of Hong Kong (Hong Kong: New Horizon Press, 1993), p. 2. 17. Robert Blake, Jardine Matheson Traders of the Far East (London: Weidenfeld & Nicolson, 1999), p. 255. 18. Colin N. Crisswell, The Taipans. Hong Kong's Merchant Princes (Hong Kong: Oxford University Press, 1981), pp. 225-6. 19. Donald Tsang Yam-kuen, Chief Secretary, Government Information Services (GIS hereafter), 27 July 2001. 20. He was commenting on the attitudes of China specialists working in Hong Kong. John Gittings, "China-Watching in Hongkong", in Association for Radical East Asian Studies, Hong Kong: Britain's Last Colonial Stronghold, Vol. 2, No. 1 (1972), pp. 119-20. 21. Lau Chi Kuen, Hong Kong's Colonial Legacy (Hong Kong: The Chinese University Press, 1997) pp. 62-4. Nor was it part of a strategy to favour British commercial interests and suppress Chinese manufacturers as discussed in Tak-wing Ngo, "Industrial History and the Artifice of Laissezjaire Colonialism", in Tak-Wing Ngo (ed.), Hong Kong's History. State and Society Under ColonialRulR (London: Routledge, 1999), pp. 130-3 in particular. 22. See Catherine R. Schenk, Hong Kong as an International Financial Centre. Emergence and Development 1945-65 (London: Routledge, 2001), p. 7; "Hongkong's Trade in April 1952", Far Eastern Economic Review (FEER hereafter), 5 June 1952; Ron G. Whitehead, "Outlook for Hongkong Textiles", FEER, 23 October 1952; "Hongkong: Trade and Supplies 1952-53", FEER, 11 March 1954. 23. Jik:Joen Lee, The Road to the Development ofSocial Welfare in Hong Kong. The Historical Key Issues (Hong Kong: Hong Kong Institute of Asia-Pacific Studies, 1996), pp. 267 . 24. On these stereotypes, see John Rear, "One Brand of Politics", in Keith Hopkins (ed.), Hong Kong: The Industrial Colony (Hong Kong: Oxford University Press, 1971), p. 110-12. 25. Anson Chan, Chief Secretary, GIS, 9 June 1998. 26. Among the most prominent and articulate presentations of these views were "Speech Made by Mr Gordon WU on Development of Hong Kong's Political System", Legislative Council Paper (CB(2)1473/99-00(01)); GIS, 19 April 2001; International Herald Tribune, 20 April 2001. He modified his opposition temporarily after the 1July 2003, protests. South China Morning Post (SCMPhereafter), 12July and 13 December 2003. Similar comments from tycoons include: Peter Woo, "Taxing Times for the Rich", SCMp, 24 February 2000; Ronnie Chan, "Democracy in Balance", SCMP, 12 January 2000 and 16 December 2003. One prominent businessman threatened publicly to abandon his investment programmes in Hong Kong in response to political developments. Bruce Gilley, "Li Betrayed", FEER, 28 January 1998, China Daily Hong Kong edition, 25 August 2000; 27. Claims about these cultural factors are summarized in Joe England and John Rear, Chinese Labour Under British Rule (Hong Kong: Oxford University Press, 1975), pp. 49-53, 64-70. 28. Diana Martin, "Motherhood in Hong Kong: The Working Mother and ChildCare in the Parent-Centred Hong Kong Family", in Grant Evans and Maria Tam (eds), Hong Kong. The Anthropology of a Chinese Metropolis (Richmond: Curzon, 1997), p. 198. Notes to Pages 219-222 297 29. Robert Westwood et al., Gender and Society in Hong Kong. A Statistical Profile (Hong Kong: Hong Kong Institute of Asia-Pacific Studies, 1995), p. 62; Ng Chun-hung, "Bringing Women Back In: Family Change in Hong Kong", in Veronica Pearson and Benjamin K. P. Leung (eds), Women in Hong Kong (Hong Kong: Oxford University Press, 1995), pp. 90-2. 30. See James C. Hsiung, "The Hong Kong SAR: Prisoner of Legacy or History's Bellwether?" inJames C. Hsiung (ed.), Hong Kong the Super Paradox. Life AfterReturn to China (London: Macmillan, 2000), pp. 316-7. 31. Lau, Hong Kong's Colonial Legacy, p. 69. 32. Tsoi Kcon-wah, "Poverty Eradication and Social Security in Hong Kong", in Daniel T. Shek et al. (eds), Advances in Social Welfare in Hong Kong (Hong Kong: Chinese University Press, 2002), pp. 136-S. 33. A well-presented example is John Flowerdew, "Public Discourse in Transitional Hong Kong", in Lee Pui-tak (ed.), Hong Kong Reintegrating With China. Political, Cultural and Social Dimensions (Hong Kong: Hong Kong University Press, 2001), pp.44-S. 34. The post-colonial challenges are described by Anthony B. L. Cheung, "The Changing Political System: Executive-led Government or 'Disabled' Governance?" in Lau Siu-kai (ed.), The First Tung Chee-hwa Administration. The First Five Years of the Hong Kong Special Administrative Region (Hong Kong: Chinese University Press, 2002), pp. 56-S. 35. The polling evidence is presented in Victor Zheng et aL "From a Free Economy to an Interventionist Society. The Crisis of Governance in Hong Kong", in Lau Siu-kai et al. (eds), Indicators of Social Development: Hong Kong 1999 (Hong Kong: Hong Kong Institute of Asia-Pacific Studies, 2001), pp. 24-8. 36. The survey data are analysed in Ho Kwok-leung, "Popular Support for Effective Governance", in Lau et al. (eds), Indicators of Social Development: Hong Kong 1999, pp.3S-9. 37. Lau Siu-kai, "Attitudes towards the Institutional and Policy Reform Initiatives of the Tung Administration", in Lau Siu-kai et al. (eds), Indicators ofSocial Development: Hong Kong 2001 (Hong Kong: Hong Kong Institute of Asia-Pacific Studies, 2003), pp. 11,14,24-5. 3S. Section 4(d), Hospital Authority Ordinance (cap. 113). 39. For a full list of the restricted items and of the charitable funds which were available to assist the indigent, see the Secretary for Health and Welfare, E. K. Yeoh, Hong Kong Hansard, 9 May 2000, pp. 5177-S0. 40. GIS, 29 March 2001. 41. For the government's response to a variety of such allegations raised by legislators, see Hong Kong Hansard, 20 December 2000, pp. 2036-43, 2254-7. 42. See the reassurances offered in GIS, 23 July 2003 and by Carrie Lau Cheng Yuetngor , Director of Social Welfare, GIS, 20 February 2001. 43. GIS, 12 September 1997. 44. The extent of the fall in earnings and the lengthening hours of work is usually under-estimated. The best analysis of the statistical evidence is Kelvin Fan, "Recent Developments in Labour Earnings in Hong Kong", Hong Kong Monetary Authority Quarterly Bulletin, No. 37 (December 2003). 45. Tsoi in Shek et al. (eds), Advances in Social Welfare in Hong Kong, pp. 125-7. 46. Although the government was more interventionist after 1997, it was tackling 298 Notes to Pages 222-228 problems and building on foundations that had developed over a long period under British rule. Edward Vickers, In Search of an Identity. The Politics ofHistory as a School Subject in Hong Kong, 1960s-2002 (New York: Routledge, 2003), pp. 43-8. 47. A full analysis of the general attitude towards educational reform and the particular reaction of the middle class is provided by Ng Chun-hung, "Education Ethos and Education Reform", in Lau et al. (eds), Indicators of Social Development: Hong Kong 2001. 48. Arthur K. C. Li, Secretary for Education and Manpower, GIS, 18June 2003; Fanny Law, Permanent Secretary for Education and Manpower, GIS, 12 November 2003. 49. Tung Chee Hwa, GIS, 6 December 2003. 50. Lau Siu-kai, "Socio-economic Discontent and Political Attitudes", in Lau et al. (eds), Indicators of Social Development: Hong Kong 2001, pp. 61-2. 51. John P. Burns, "Civil Service Systems in Transition: Hong Kong, China and 1997", in Ming K. Chan (ed.), The Challenge ofHong Kong's Reintegration With China (Hong Kong: Hong Kong University Press, 1997), pp. 35-6, 42-4. The only post-colonial innovations were to make Chinese citizenship mandatory for a small number of the most senior positions and to require formal Chinese government approval of such appointments. 52. Polling data were summarized in the SCMP, 26 and 28 June 2002. 53. Lau, "Socio-economic Discontent and Political Attitudes", in Lau et al. (eds), Indicators of Social Development: Hong Kong 2001, pp. 38, 60, 68, 73. 54. This conclusion was supported by a survey by Hong Kong University's polling programme director, Robert Chung Ting-you, and Chinese University journalism professor, Joseph Chan Man, SCMP, 7 July 2003. 55. People's Daily, 28 September 2003; Wen Wei Pao, 16 September 2003. 56. James Tien, Liberal Party Chairman, Hong Kong Economic Journal, 26 September 2003; Ma Lik, DAB Chairman, China Daily Hong Kong edition, 11 December 2003. 57. The 2004 Policy Address. Seizing Opportunities for Development, Promoting People-based Governance (Hong Kong: HKSAR Government, 2004), p. 26. 58. For appointment policy and data, see Lam Woon-kwong, Secretary for Home Affairs, Hong Kong Hansard, 8 November 2000, pp. 714-22; also Dr Patrick Ho, Secretary for Home Affairs, GIS, 3 December 2003. 59. This account relies very heavily on Alvin Y So, Hong Kong's Embattled Democracy. A Societal Analysis (Baltimore: John Hopkins University Press, 1999), pp. 43-8, 52-4, 58-9 in particular. He distinguishes between the "old" middle class and "service professionals", a distinction that does not affect the discussion in this context. 60. Ma Ngok, "Executive-Legislative Relations: Assessing Legislative Influence in an Executive-Dominant System", in Lau (ed.), The First Tung Chee-hwa Administration. The First Five Years ofthe Hong Kong Special Administrative Region, pp. 355-6;Jermain T. M. Lam, The PoliticalDynamics ofHong Kong Under Chinese Sovereignty (Huntington: Nova Science Publishers, Inc., 2000), pp. 235-9. 61. President Hu Jintao, Wen Wei Pao, 29 September 2003. 62. Sing Tao, 27 January 2004. 63. Lo Shiu-hing, Governing Hong Kong: Legitimacy, Communication and Political Decay (New York: Nova Science Publishers, Inc., 2001), pp. 55-7. 64. This analysis is based on the data presented throughout the two important essays by Lau, "Attitudes towards the Institutional and Policy Reform Initiatives of the Tung Administration", and "Socio-economic Discontent and Political Attitudes", Notes to Pages 228-233 299 in Lau et al. (eds), Indicators of Social Development: Hong Kong 2001. They identifY the differences between the attitudes of the middle class and other social groups. The interpretation offered here of the significance of these statistics is not Professor Lau's. 65. The label has been amply justified by Denny Ho Kwok-leung, Polite Politics. A Sociological Analysis of an Urban Protest in Hong Kong (Aldershot: Ashgate, 2000). STATISTICAL APPENDIX 1. The statistical obstacles are illustrated by Census and Statistics Department, Hong Kong 1991 Population Census. Main Tables (Hong Kong: Government Printer, 1992), pp. 138-9 and 1996 Population By-Census Main Tables (Hong Kong: Government Printer, 1997), pp. 132-3. 2. K M. A. Barnett, Hong Kong. Report on the 1961 Census (Hong Kong: Government Printer, n.d.), Vol. II, p. 53. 3. Census and Statistics Department, Hong Kong Population and Housing Census 1971 Main Report (Hong Kong: n.p., n.d.), pp. 32-4. 4. Census and Statistics Department, Hong Kong 1981 Census Main Report (Hong Kong: Government Printer, 1982), Vol. 2, p. 27. 5. Hong Kong 1991 Population Census. Main Tables, pp. 100-1. 5. 1996 Population By-Census Main Tables, pp. 54-5. 6. Census and Statistics Department, Hong Kong 2001 Population Census Thematic Report -Ethnic Minorities (Hong Kong: Census and Statistics Department. 2002), p. 16. A post-colonial survey of ethnic minorities and their characteristics related to Hong Kong's requirements under the United Nations Committee on the Elimination of Racial Discrimination threw little useful light on "expatriates" as the term is used here. Government Information Services, 2January 2001 and ACNielsen, Omnibus Household Survey in the Fourth Quarter of 1999 (Characteristics ofthe Ethnic Minorities) Prepared for Home Affairs Bureau (Hong Kong: Home Affairs Bureau, 2000). 7. Catherine R. Schenk, Britain and the Sterling Area. From Devaluation to Convertibility in the 1950s (London: Routledge, 1994), pp. 50-3. 8. Details of this exercise are taken from N. A. S. Mills, Hongkong Bank Manager, confidential letter to P. B. Williams, Secretary for Administration, 26 November 1975; FCO Telegram 1201 ofl December 1975; DCA/BILAT/1351C, (38) Director of Civil Aviation to Political Adviser, 10 October 1975; (40) and (43) Director of Civil Aviation to Secretary for Administration of 5 and 19 November 1975. 9. Hong Kong. Its Value to Britain (Hong Kong: Government Information Services, 1989), p. 5. 10. Commerce and Industry Department, Survey on Overseas Investment in Hong Kong Industry (IND 906/2/1,11 October 1974, mimeo), Table 11; Industry Department, 1995 Survey of External Investment in Hong Kong's Manufacturing Industries (Hong Kong: Industry Department, 1995), p. 64. 11. Census and Statistics Department, External Investments in Hong Kong's NonManufacturing Sectors, 1993 & 1994 (Hong Kong: Census and Statistics Department, 1996), pp. 4-5. 12. Business Monitor, MA4 1995 (odi_uk.95.wk4). 13. A secondary source of information existed until the end of the Sterling Area. The Exchange Controller also collected detailed monthly statistics on foreign currency 300 Notes to Pages 233-235 transactions through Hong Kong. These data were useful principally in tracking purchases of sterling by the Bank of China group and flows of remittances to Hong Kong. See Hong Kong Public Records Office HKRS163-1-2055/2660. 14. Y C.Jao, Banking and Currency in Hong Kong. A Study ofPostwar Financial Development (London: Macmillan, 1974), pp. 65-6. 15. This important distinction is clear from Sir Philip Haddon-Cave, Financial Secretary, Hong Kong Hansard, 29 November 1973, pp. 228-9 and 25 June 1980, pp.902-3. 16. Unfortunately, the data before 1986 are not comparable with the presentation of the statistics by sector from that year mainly because of the desire to conceal the position of the Hongkong Bank, it seems. See Robert Fell, Annual Report of the Office of the Commissioner for Banking for 1986 (Hong Kong: Government Printer, 1987), p. 40. This situation has persisted under the Hong Kong Monetary Authority. 17. See Frank H. H. King, The Hongkong Bank in the Period of Development and Nationalism, 1941-1984. From Regional Bank to Multinational Group (Cambridge: Cambridge University Press, 1991), pp. 620-4. 18. The potential threat to confidence because of the lack of adequate banking statistics was made plain by Haddon-Cave, Hong Kong Hansard, 29 November 1973, pp.228-9. 19. The data on the pre-1961 Shanghainese community are drawn from Barnett, Hong Kong. Report on the 1961 Census, Vol. II, pp. LXVl, 53, 64, 81. They are overestimates because they cannot be adjusted to allow for deaths or departures among the group that arrived up to 1955. 20. Census and Statistics Department, 2001 Population Census Main Report - Volume I (Hong Kong: Census and Statistics Department, 2002), p. 46; Census and Statistics Department, 2001 Population Census. Thematic Report - Persons from the Mainland Having Resided in Hong Kongfor Less Than 7 Yea1:5 (Hong Kong: Census and Statistics Department, 2003), p. 23. The best single overview of the relative strength of Chinese dialects in Hong Kong in the twentieth century was byJohn Bacon-Shone and Kingsley Bolton, "Charting Multilingualism: Language Censuses and Language Surveys in Hong Kong", in Martha C. Pennington (ed.), Language in Hong Kong at Century's End (Hong Kong: Hong Kong University Press, 1998). 21. Wong Siu-lun, Emigrant Entrepreneu1:5. Shanghai Industrialists in Hong Kong (Hong Kong: Oxford University Press, 1988), p. 64. 22. 1996 Population By-Census Main Tables, p. 89. 23. Susanne Yuk-ping Choi, The Occupational Attainments ofthe Five Major Dialect Groups in Hong Kong (Hong Kong: Hong Kong Institute of Asia-Pacific Studies, 2000), p. 17. ...