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LOWTAX OFFSHORE

HONG KONG: COUNTRY AND GOVERNMENT


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Hong Kong Geography

Hong Kong is a former British colony located off the southern coast of China and lying next to the Kwangtung province. It sits at the mouth of the His Chiang Estuary and is approximately 90 miles to the northwest of the Chinese port city of Canton, 40 miles to the west of which lies the former Portuguese colony of Macau.

The territory comprises Hong Kong Island & the adjacent islets, Stonecutters Island, the Kowloon Peninsula on the mainland and the New Territories. The New Territories comprise approximately 90% of the land surface area of Hong Kong and consist of a portion of the Chinese mainland and over 230 islands leased from China in 1898 for 99 years.

Whilst the total land area of the territory is about 404 square miles this figure is not final given the continual ongoing land reclamations which are the direct consequence of an urban development program which is limited by a shortage of land.

The capital city of the territory is at Victoria, on Hong Kong Island, which boasts one of the world's finest natural harbours. The territory's hilly terrain has had an impact on the direction of urban development. The Kowloon ridge is the dividing line between urban and rural Hong Kong with the harbor area, the commercial, industrial and residential districts located to the south while the agricultural area is restricted to the north and occupies some of the islands.

The yearly average temperature is 70° F with mean January and July temperatures standing at 16° C and 28° C respectively. Average annual rainfall is about 85 inches of which about 90% falls between April and October. Typhoons occur between July and October. Hong Kong has one of the world's busiest international airports.

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Hong Kong Population, Language and Culture

Chinese (Cantonese) and English are the official languages of Hong Kong. Most important documents are printed in both languages. For some documents this is a legal requirement.

In July, 2007, the population was estimated at 6.98 million persons making the territory one of the most densely populated areas in the world. (Prior to the Chinese civil war the population stood at 1.5 million people). Pressure on land means that over 80,000 people live in boats with large elements of the population living in extremely cramped conditions.

Although more than 50% of the current population were born in Hong Kong some 99% of the people are effectively ethnic Chinese with strong roots in the neighbouring Kwangtung and Fukien provinces and who continue to maintain separate communities even within urban areas.

About 10% of the population are Christian with the balance being followers of Buddhism or Taoism. The major non-Chinese elements of the population are from The Philippines, British Commonwealth countries, the USA, Portugal and Japan. The cultural identity of the territory is distinctly Chinese.

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Hong Kong Government

Since 1st July 1997 Hong Kong has been a special administrative region of the People's Republic of China. The constitution is known as the "Basic Law" and is modeled on the constitution of the People's Republic. Under the guiding principle of "one country, 2 systems" which was established before the handover, the Chinese Government agreed that Hong Kong's capitalist system would remain unchanged until the year 2047. Thus whilst defense and foreign affairs are the exclusive domain of China, Hong Kong is autonomous in all other matters even to the extent that the Basic Law authorizes the territory to maintain and develop relations and conclude and implement agreements in various significant fields with foreign states and regions and relevant international organizations using the name of "Hong Kong, China".

The administration of the territory is in the hands of the Hong Kong special administrative government which is headed up by a Chief Executive. The Chief Executive owes his appointment to the decision of a committee of selected nominees of the Chinese Government. The Chief Executive appoints the Executive Council of Government (a body that advises him on all matters of government) and all judges. Moreover all bills passed by the Legislative Council must have his assent before they become law. The 60-member Legislative Council enacts legislation and controls public expenditure. Its members are elected every 4 years under a complex weighted voting arrangement. The urban and regional councils are the equivalent of western municipal authorities.

The handover agreement of 1997 provided for the territory to maintain its British legal system save in so far as those laws contravene the Basic Law and with the Court of Final Appeal of Hong Kong replacing the Privy Council as the final and highest court of record.

Although there have been one or two cases in which Beijing has seemed to over-rule Hong Kong courts, particularly as regards citizenship issues, by and large the transition from colony to Special Administrative Region has been successful, although the people of Hong Kong have been very dissatisfied with the lack of independence and vigour shown by their leaders in moving towards democracy in the SAR.

In April, 2004, the Standing Committee of the National People's Congress asserted that political reform in Hong Kong is the sole prerogative of the Chinese central government, a move which observers suggested was effectively designed to amend Hong Kong's Basic Law by increments. Despite Chief Executive Tung Chee-hwa's suggestion that the ruling is unlikely to affect the "one country, two systems" arrangement between the territory and mainland China, a pall was cast over the jurisdiction's political system.

Tung attempted to reassure the populace, explaining that: "There are calls for democracy in the society, but Hong Kong should not place itself in opposition to the central government. The central government is actually very concerned about the development of democracy in Hong Kong." Chief Secretary for Administration, Donald Tsang attempted to back the Chief Executive up, observing that: "It also does not mean that the central authority does not respect the opinions of the Hong Kong people." But the populace has largely lost faith in its leaders. Critics argue that the ruling deprives the jurisdiction of any say over its political future, and that the door has been left open for further reinterpretations of Hong Kong law by the Chinese authorities.

In 2005, Tung Chee-hwa resigned in the face of mounting dissatisfaction both in Hong Kong and Beijing, and Beijing formally rubber-stamped Donald Tsang's selection as Hong Kong's new Chief Executive. Tsang was re-elected on 25 March 2007 (next elections to be held in 2012).

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