Mr FILING(1.33 p.m.) —First of all, I thank the right honourable member for New England (Mr Sinclair) for moving this motion on behalf of the member for O'Connor (Mr Tuckey). The right honourable member for New England, of course, is the Chairman of the Joint Standing Committee on Foreign Affairs, Defence and Trade, which is at present conducting an inquiry into Hong Kong's transfer to Chinese sovereignty. During the recent visit of the Hong Kong Legislative Council members to Australia—the first visit made by members of the council to Australia—an interest was registered by council members in making a submission to the committee, on behalf of the Legislative Council, in relation to that inquiry. I am looking forward to the opportunity that that will present for Australians to hear first-hand and in a detailed way the concerns and some of the views of Legislative Council members on the transitional period. In private conversation and at the function that I was able to attend with them, it was interesting to learn first-hand—I know that you, Mr Deputy Speaker Nehl, yourself were there—of some of the interests and concerns which were registered in discussion about the transition.

As a former resident of Hong Kong, back in 1967 when I lived there—although I was a child at the time—the prospect of the resumption seemed such a long way away that it was almost way over the horizon. At that stage it was 30 years away, and we are now within months of that event taking place. As other speakers have pointed out, Hong Kong is now an extremely important region within the Asia-Pacific area in economic and social terms. Hong Kong will not cease to retain this importance after reunification. I know that this is recognised by many nations throughout the world including, of course, the PRC. This fact is also well understood within Hong Kong.

In 1984 Britain and China came to an agreement for the handover of Hong Kong from Britain to China. There was a joint declaration providing for Hong Kong to become a special administrative region of China and providing the basic law for Hong Kong over the next 50 years. There is some satisfaction that there has been able to be agreement between Britain and China. That has continued to a certain extent since this joint declaration, although in more recent times—particularly since the Tiananmen Square massacre and other events—substantial concerns have been raised within and without Hong Kong as to how this transaction will work.

This translation will obviously not be without its problems. In fact, it is widely accepted that this will be a unique historical event. The Chinese social and political system will absorb a quite different common law system based on the British form of legislature, judiciary and colonial constitution. The key to this process will be the degree to which China's leaders understand and acknowledge the real contribution that this system has made to the prosperity of Hong Kong. A point was raised by my colleague the member for Richmond (Mr Anthony) when he said that this is prosperity which no doubt China wants to benefit from and, of course, in time emulate—although in certain regions of China there is already some emulation of this rapid growth and high degree of capitalist endeavour.

Hong Kong is a well developed dynamic economy which is in strong growth, and it has a deepening economic relationship with China. It has a growing and prosperous middle class and a well-educated work force. We have seen major structural change away from manufacturing to service industries, which has seen the government put a premium on the development of human resources through training.

In conclusion, may I point out that some of the concerns revolve around the way in which the law will work within the context of the transition to reunification: in particular, the change in one small area, the administration of the civil law, from the Hong Kong police to, effectively, the army.

Mr DEPUTY SPEAKER (Mr Nehl) —Order! The time allotted for this debate has expired. The debate is adjourned and the resumption of the debate will be made an order of the day for the next sitting.