Hong Kong's political structure and democracy must develop under the One Country, Two Systems framework, the arrangement that best fulfills the long-term good of both Hong Kong and the Mainland, Chief Secretary for Administration Donald Tsang says.

Moreover, the Central Authorities have decided to let Hong Kong's political structure develop gradually in the light of the city's actual situation to balance the interests of all different sectors, and the decision has set in motion Hong Kong's political development and created room for election methods to become more open and democratic in 2007 and 2008.

Mr Tsang made these remarks when responding to lawmaker Frederick Fung's motion "Requesting the Chief Executive submit a supplementary report to the National People's Congress Standing Committee" at the Legislative Council tonight.

He noted that democracy is Hong Kong people's common wish, but they long for prosperity and stability at the same time.

He continued: "We must recognise that relentless conflict and discord is by no means the wish of Hong Kong citizens; our citizens call upon the Government, the legislature, concerned groups and individuals to join hands in exploring and discussing how we could promote constitutional development while maintaining the harmony, stability and prosperity of the society."

Mr Tsang also reiterated the freedoms enjoyed by Hong Kong people have not diminished in any way since the reunification.

The Central Authorities have also been extremely cautious in the implementation of the One Country, Two Systems principle.

Central Authorities act for HK's benefits

"Not only have they restrained themselves and respected the SAR's high degree of autonomy, they have also been acting for Hong Kong's benefits in many ways," Mr Tsang said.

"We must not distort the picture by saying that this constitutional arrangement of our political development is an erosion of Hong Kong's high degree of autonomy.  Indeed, Hong Kong has been enjoying and will continue to enjoy a high degree of autonomy - we are vested with executive, legislative, independent judicial power, including that of final adjudication."

On the National People's Congress Standing Committee's decision, Mr Tsang said there is ample room for Hong Kong's political structure to develop, and the two elections can surely stride forward and set a new milestone in Hong Kong's constitutional development.

He also stressed the nine factors put forward by the Constitutional Development Task Force's second report have solid backing and are completely underpinned by Basic Law provisions and the One Country, Two Systems principle.

Nine factors conducive to reaching consensus

He said: "Defining the principles regarding constitutional development is the prerequisite for any concrete constitutional design.

"The truth is, the more clearly we present these issues from the outset, the more we could generate discussions on the constitutional system. And we could have consensus more easily if a proposal could adhere to these factors."

Justice chief highlights legal basis

Also speaking in the Legislative Council today, Secretary for Justice Elsie Leung spelled out the legal basis for the National People's Congress Standing Committee's right to rule on Hong Kong's constitutional development.

Miss Leung said the committee's authorisation of the courts of Hong Kong to hear cases does not affect its own power to interpret the Basic Law.

"Nor is it affected by the need of the courts of Hong Kong, before making final judgments, to seek an interpretation from the committee in certain circumstances."

Hong Kong courts, she stressed, may not challenge the committee's power to interpret the provisions of the Basic Law, and they must comply with its interpretations.

The Central Authorities' concern over Hong Kong's constitutional development arises from their rights and obligations under the constitutional order. The establishment and the systems of Hong Kong are decided by the National People's Congress, and the aim of the Basic Law is to prescribe the systems practised in Hong Kong to ensure the implementation of the basic policies of the Mainland regarding Hong Kong.

Central Authorities responsible for HK's constitutional development

The establishment of the Hong Kong Special Administrative Region serves to uphold the national unity and territorial integrity, and to maintain Hong Kong's prosperity and stability, Miss Leung said.

"Since the constitutional development of Hong Kong has strong significance to the SAR's systems, the Central Authorities must be responsible for it."

Articles 1, 2 and 12 of the Basic Law elucidate Hong Kong's legal status, she said.

"They stipulate that Hong Kong is an inalienable part of the People's Republic of China. China is a unitary state and its regions have no power whatsoever to decide on or alter their political systems on their own. The Central Authorities, therefore, play an active role in the constitutional development of Hong Kong."

Annexes I and II give the committee the authority to participate in the constitutional development of Hong Kong "and this is not inconsistent with the high degree of autonomy of the latter."

Different systems stir controversy

Differences between the common law and civil law systems have created some misunderstandings, Miss Leung said.

"The Basic Law has only been implemented since July 1, 1997. It is a national law enacted by the committee in accordance with the law of China. It is also a brand new concept.

"From the experience and precedents gathered through the implementation of the Basic Law over the past six to seven years, we are able to gradually grasp the inherent meaning in it. However, the community still has disagreements over the meaning of some of the provisions of the Basic Law from time to time.

"Some people attribute that to the differences between the common law and the civil law systems. I am of the view that the common law is a living legal system which is perfected through application. In the course of such process, we have to seriously examine the issues with an open mind."

An open mind will facilitate future work

She said under the common law, if the court needs to know or apply foreign law, legal experts from the jurisdictions concerned would be invited to give evidence in court. In understanding the Basic Law, apart from ascertaining the original legislative intent from supporting documents at the time of the legislation, our grasp of the law of China is of great importance.

"The controversies over the interpretation of the Basic Law and over the decision stem, to a very large extent, from the differences between the two legal systems and cultures," Miss Leung said.

"Exchanges with the Mainland and an open mind would help our discussion over the future development of a democratic system. The Task Force stands ready to work closely with all parties involved so as to facilitate future work."

The Task Force will issue its third report this month. The public and all sectors will be invited to express their views on constitutional development and to suggest different proposals that are compliant with committee decisions.