7 November 2002

The Editor
Forbes

Dear Sir,

Contrary to your article (Subverting Hong Kong's markets, October 31), proposed national security laws are highly unlikely to have any effect at all on the smooth functioning of the financial markets in Hong Kong.

Since our proposals were released in September, other senior Hong Kong Special Administrative Region Government officials and I have repeatedly given assurances that we remain strongly committed to preserving the pillars of our success as an international financial and trading center - the rule of law upheld by an independent judiciary, the free flow of information, goods and capital, a level playing field for business and a clean administration.

The proposals have been formulated entirely in Hong Kong and draw largely on existing laws that, in many cases, have actually been narrowed considerably in scope. There is no question of transplanting Mainland laws into Hong Kong's legal system. The penalties for crimes such as treason, sedition, subversion and secession are in line with the same or similar offences in other jurisdictions such as the US, the UK and Canada.

The fact that the proposals are being debated often, openly and vigorously, and that all shades of opinion are given full play in the media, is evidence itself that the free flow of news and information remains alive and well in Hong Kong. I am sure it will continue to remain so after the proposed laws are debated and voted on by our own legislature.

Finally, I must stress that acts of violence, or the threat of violence, or conduct of serious unlawful means would be required before most of the proposed offences are committed. The definition of 'serious unlawful means' is drawn from existing laws and relates to behaviour akin to terrorism or terrorist activities. I certainly believe that the usual reporting activities of journalists in Hong Kong would rarely, if ever, fall into this category.

Yours faithfully, ( Mrs Regina Ip ) Secretary for Security Hong Kong Special Administrative Region