Hong Kong is a Special Administrative Region (SAR) of the People's Republic of China (PRC). The 1984 Sino-British Joint Declaration on the Question of Hong Kong, and the Basic Law, the SAR's constitution approved by the PRC in 1990, specify that Hong Kong will enjoy a high degree of autonomy except in matters of defense and foreign affairs. This autonomy under the "one country, two systems" formula in effect since 1997 has been tested severely this year. The Basic Law provides for the protection of fundamental rights and calls for progress toward universal suffrage and further democratization after a 10-year period, starting with Hong Kong's July 1, 1997, reversion to Chinese sovereignty. The Chief Executive is chosen by a selection committee composed of 800 directly elected, indirectly elected, or appointed individuals. The Chief Executive appoints and supervises a cabinet of principal officers. The Basic Law significantly circumscribes the power of the legislature, the Legislative Council (Legco). In September 12 elections, voters directly elected 30 members of the Legco from geographic constituencies and indirectly elected 30 from functional or occupational constituencies. Despite isolated allegations of voter intimidation prior to the election and some irregularities on election day, the voting was considered free and fair. Majorities are required in both the geographic and the functional constituencies to pass legislation introduced by individual legislators. Members may not initiate legislation involving public expenditure, political structure, government operations, or government policy. The judiciary is independent, and the Basic Law vests Hong Kong's highest court with the power of final adjudication. Under the Basic Law, however, the Standing Committee of the PRC's National People's Congress (NPC) has the power of final interpretation of the Basic Law.

An effective police force under the firm control of civilian authorities maintained public order. The Independent Police Complaints Council, made up of public members appointed by the Chief Executive, monitored and reviewed the work of an office that investigated public complaints against the police. The 4,000 Chinese troops sent to Hong Kong in 1997 to replace the British military garrison have maintained a low profile and have not performed or interfered in police functions.

Hong Kong's free market economy is an international trade, shipping, and finance center as well as a principal platform for trade and investment with the PRC. The economy grew 7.5 percent during the year, with no inflation. Per capita gross domestic product was approximately $23,000. The population was approximately 6.8 million.

The Government generally respected the human rights of residents, and the law and judiciary provided effective means of dealing with individual instances of abuse. In April, the Standing Committee of the NPC ruled out universal suffrage in the next elections for Chief Executive in 2007 and Legco in 2008. This was an initiative of the central authorities that cut short local debate and raised questions about the PRC's willingness to permit Hong Kong to operate with a high degree of autonomy. Human rights problems included: Limitations on residents' ability to change their government and limitations on the power of the legislature to affect government policies; allegations of intimidation of journalists and other media figures; violence and discrimination against women; discrimination against ethnic minorities; restrictions on workers' rights to organize and bargain collectively; and trafficking in persons for the purposes of forced labor and prostitution.

RESPECT FOR HUMAN RIGHTS

Section 1     Respect for the Integrity of the Person, Including Freedom From:

a. Arbitrary or Unlawful Deprivation of Life

There were no reports of arbitrary or unlawful deprivations of life committed by the Government or its agents.

b. Disappearance

There were no reports of politically motivated disappearances.

c. Torture and Other Cruel, Inhuman, or Degrading Treatment or Punishment

The law forbids torture and other abuse by the police. There were allegations of assault by police officers during the year. Disciplinary action can range from warnings to dismissal. Criminal proceedings may be undertaken independently of the disciplinary process. The Complaints Against Police Office (CAPO) investigates allegations of excessive use of force and the Independent Police Complaints Council (IPCC), a body composed of public members appointed by the Chief Executive, monitors and reviews their work.

During the first half of the year, CAPO received 218 allegations of assault by police officers against persons in custody and 130 allegations of assault against persons not in custody, out of a total of 21,562 arrests. Of the 218 allegations of assault by police officers against persons in custody, 107 case investigations were completed and endorsed by the IPCC, and none were substantiated: 79 were withdrawn, 22 were deemed "not pursuable," 4 were judged to be false, 1 was judged "no fault," and 1 was judged "unsubstantiated." The remaining 111 cases were pending as of June 30. Of the 130 allegations of assault against persons not in custody, 62 case investigations were completed and endorsed by the IPCC, and none were substantiated: 45 were withdrawn, 13 were deemed "not pursuable," 1 was judged to be false, and 3 were judged "unsubstantiated." The remaining 68 cases were pending as of June 30. In response to concerns about the police being responsible for investigating their own misconduct, the Government drafted a bill to provide a statutory basis for the IPCC, which would allow it to set up its own secretariat, receive funding to hire its own permanent staff, and initiate investigations.

Prison conditions generally met international standards. Men and women were housed separately, juveniles were housed separately from adults, and pretrial detainees were held separately from convicted prisoners. For the first 6 months of the year, the average occupancy rate for Hong Kong's 24 prisons was 114 percent. Overcrowding was most serious in maximum security prisons, which operated at an average occupancy rate of 136 percent. The Government continued to address the problem of prison overcrowding by remodeling existing buildings to provide space for additional prisoners and redistributing the prison population. In addition, the Immigration Department expected its new Detention Center in Tuen Mun, due to be completed in 2005, to hold 400 additional people and eliminate the need to put immigration offenders in prison or other correctional facilities.

The Government permitted prison visits by human rights observers. Local justices of the peace regularly inspected prisons, and, as a standard procedure, these visits were unannounced.

d. Arbitrary Arrest, Detention, or Exile

Common law, legal precedent, and the Basic Law provide substantial and effective legal protection against arbitrary arrest or detention, and the Government generally observed these provisions in practice. Suspects must be charged within 48 hours or released. During the year, the average length of pre conviction incarceration did not exceed 48 days.

The police force is led by a uniformed Police Commissioner who reports to the Secretary for Security--a member of the Chief Executive's Cabinet. The force had 28,695 officers and was divided into 5 departments with both headquarters and regional formations. Corruption was not a significant problem within the force. Police officers are subject to disciplinary review by CAPO and IPCC in cases of alleged misconduct (see Section 1.c.).

e. Denial of Fair Public Trial

The Basic Law provides for an independent judiciary, and the Government generally respected this provision in practice. The judiciary, underpinned by the Basic Law's provision that Hong Kong's common law tradition be maintained, generally provided citizens with a fair and efficient judicial process. Under the Basic Law, the courts may interpret those provisions of the Basic Law that address matters within the limits of the SAR's high degree of autonomy. The courts also interpret provisions of the Basic Law that touch on PRC central government responsibilities or on the relationship between the central authorities and the SAR, but before making final judgments on these matters, which are unappealable, the courts must seek an interpretation of the relevant provisions from the Standing Committee of the NPC. The Basic Law requires the courts to follow the Standing Committee's interpretation of Basic Law provisions. Judgments previously rendered are not affected. The NPC's mechanism for interpretation is its Committee for the Basic Law, composed of six mainland and six Hong Kong members. The Chief Executive, the President of the Legislative Council, and the Chief Justice nominate the Hong Kong members. Human rights and lawyers' organizations have expressed concern that this process, which circumvents the Court of Final Appeal's power of final adjudication, could be used to limit the independence of the judiciary or could degrade the courts' authority. In the controversial 1999 "right of abode" case (concerning the right of certain persons to reside in Hong Kong), the Government, after losing the case in the Court of Final Appeals, sought a reinterpretation of relevant Basic Law provisions from the NPC. There have been no such appeals of court decisions to the NPC since 1999.

The Court of Final Appeal is the SAR's supreme judicial body. An independent commission nominates judges. The Chief Executive is required to appoint those nominated, subject to endorsement by the legislature. Nomination procedures ensure that commission members nominated by the private bar have a virtual veto on the nominations. The Basic Law provides that, with the exception of the Chief Justice and the Chief Judge of the High Court, who are prohibited from residing outside of Hong Kong, foreigners may serve on the courts. In 2004, approximately 23 percent of judges and judicial officers were expatriates. Judges have security of tenure until retirement age (either 60 or 65, depending on the date of appointment).

Under the Court of Final Appeal is the High Court, composed of the Court of Appeal and the Court of First Instance. Lower judicial bodies include the District Court, which has limited jurisdiction in civil and criminal matters; the magistrates' courts, which exercise jurisdiction over a wide range of criminal offenses; the Coroner's Court; the Juvenile Court; the Lands Tribunal; the Labor Tribunal; the Small Claims Tribunal; and the Obscene Articles Tribunal.

The law provides for the right to a fair public trial, and an independent judiciary generally enforced this right in practice. Trials are by jury except at the magistrate court level. The judiciary provides citizens with a fair and efficient judicial process.

Under prosecution rules, there is a presumption of guilt in official corruption cases. Under the Prevention of Bribery Ordinance, a current or former government official who maintains a standard of living above that commensurate with his official income or controls monies or property disproportionate to his official income is, unless he can satisfactorily explain the discrepancy, guilty of an offense. The courts have upheld this practice.

According to the Basic Law, English may be used as an official language by the executive, legislative, and judicial branches. For historical reasons and because of the courts' reliance on common law precedents, almost all civil cases and most criminal cases were heard in English. In recent years, the Government has developed a bilingual legal system. It has increased the number of officers in the Legal Aid Department proficient in spoken Cantonese and written Chinese and extended the use of bilingual prosecution documents and indictments. All laws are bilingual, with the English and Chinese texts being equally authentic. All courts and tribunals may operate in either Cantonese or English. Judges, witnesses, the parties themselves, and legal representatives each may decide which language to use at any point in the proceedings.

There were no reports of political prisoners.

f. Arbitrary Interference with Privacy, Family, Home, or Correspondence

The law prohibits arbitrary interference with privacy, family, home, and correspondence, and the Government generally respected these prohibitions in practice. Interception of communications is conducted under the Telecommunications Ordinance and the Post Office Ordinance. Wiretaps require authorization from the Chief Executive for interception operations, but a court issued warrant is not required. The Government did not reveal the number of wiretaps and mail interceptions the Chief Executive authorized.

The Office of the Privacy Commissioner for Personal Data (PCO), established under the Personal Data (Privacy) Ordinance (PDPO), works to prevent the misuse, disclosure, or matching of personal data without the consent of the subject individual or the commissioner. Some Government departments are exempted to combat social welfare abuse and tax evasion. Violations of the PDPO can be either criminal or civil offenses. Between June 2003 and June 2004, the PCO investigated 1,109 complaints of suspected breaches of the ordinance, completing action on 1,047. The PCO found violations of the PDPO in 26 of these cases, with none resulting in prosecution. The PCO found insufficient evidence to prosecute in 243 of the cases, while the remaining cases were resolved, rejected, or withdrawn after preliminary inquiries.

The PDPO is not applicable to PRC government organs in Hong Kong. At year's end, the Government was still considering whether it should be made applicable to PRC bodies. Under certain exemptions for purposes related to safeguarding the security, defense, or international relations of Hong Kong, and for the prevention, detection, or prosecution of a crime, Hong Kong authorities may be allowed to transfer personal data to a PRC body.

Section     2 Respect for Civil Liberties, Including:

a. Freedom of Speech and Press

The law provides for freedom of speech and of the press, and the Government generally respected these rights in practice. During the year, allegations of intimidation by pro-Beijing groups and individuals prior to the September elections raised questions about these rights. Most Hong Kong media outlets are owned by businesses with interests on the mainland, making them vulnerable to self-censorship.

In February and March, the PRC media and local pro-PRC newspapers ran a series of articles defining patriotism in Hong Kong. The debate started with an article in the PRC-owned China Daily citing former Chinese leader Deng Xiaoping's statement that "only patriots should govern Hong Kong" and relating this criterion to the political debate over universal suffrage in Hong Kong. The PRC media later published guidelines for patriotic actions, and a local pro-PRC paper printed the names of those in Hong Kong perceived to be "unpatriotic." In the midst of the debate, Jiang Zemin, former president and then Chairman of the Chinese Central Military Commission accused Hong Kong's independent Apple Daily newspaper and two radio hosts of being "hostile forces," according to the local East Week magazine.

In May, two popular radio talk show hosts known for their antigovernment and anti-PRC rhetoric abruptly left their shows due to alleged intimidation. The two asserted that a man claiming to represent senior Beijing officials asked them to stop broadcasting until after the September election. Police questioned the man but made no arrest. A third talk show host received a phone call from a retired mid-level PRC official, which he perceived as a threat to his family. Subsequently, the PRC caller stated publicly that he had no intention of threatening the talk show host. In September, one of the talk show hosts was elected to the Legco, and, in October, another became host of a local television show. At year's end, the government investigations into these allegations continued.

In July, the Independent Commission Against Corruption (ICAC) raided seven newspapers with a warrant to seize documents related to a corruption case. ICAC staff also searched the homes of some journalists. The raided newspapers included pro-PRC, independent, and pro-democracy newspapers. In August, the Court of First Instance ruled ICAC's search warrant was "wrong in fact and in law." On October 11, the Court of Appeal dismissed ICAC's appeal on technical grounds but said that ICAC had acted lawfully. The Hong Kong Journalists' Association, Hong Kong Federation of Journalists, News Executives' Association, and the Newspaper Society all issued statements condemning the raids as violating freedom of the press. The acting head of ICAC said the agency respects the freedom of the press, but that it had to strike a balance between press freedom and the administration of justice.

The Telecommunications Ordinance gives the Government wide ranging powers to ban messages when it "considers that the public interest so requires." In practice, the Government has never invoked this law.

The Basic Law's Article 23 requires the Government to enact legislation prohibiting treason, secession, sedition, subversion against the Central People's Government, theft of state secrets, and links with foreign political organizations that are harmful to national security. In 2003, proposed legislation met with active and widespread public opposition. The Government withdrew the bill and stated publicly that it had no plans to reintroduce the legislation.

Individuals criticized the Government publicly and privately without reprisal, and many persons spoke freely to the media and used the media to voice their views. Political debate was vigorous. Varying viewpoints, including stories and opinions critical of the SAR and PRC Governments and statements by leading Chinese dissidents and pro-independence Taiwan activists, were carried by the mass media, in public forums, and by political groups.

During the year, newspapers published a wide variety of opinions, including some sharply critical of the NPC's decision ruling out universal suffrage in 2007 and 2008. Newspapers also carried opinions on sensitive topics such as Taiwan, Tibet, PRC leadership dynamics, Communist Party corruption, and human rights. There were 16 daily newspapers, all privately owned in name although 4 were supported financially--and guided editorially--by the PRC (Wen Wei Po, Ta Kung Pao, the Hong Kong Commercial Daily, and the China Daily). The non-PRC-owned newspapers, hundreds of periodicals, four commercial television stations (broadcast and cable), and two commercial radio stations operated freely.

The Government-owned Radio Television Hong Kong continued to enjoy the editorial independence granted to it in its framework agreement between the Government and the station's Director of Broadcasting.

International media organizations operated freely. Foreign reporters needed no special visas or government-issued press cards for Hong Kong.

There were no restrictions on the use of the Internet.

The Basic Law provides for academic freedom, and the Government generally respected that freedom in practice. There was independent research, a wide range of opinions, and lively debate on campuses. On July 12, the Legco passed a bill requiring publicly funded schools operated by voluntary bodies to set up school management committees including parents and teachers by 2012. The Anglican and Catholic Churches feared that these new rules could dilute their authority to manage the schools they sponsor.

b. Freedom of Peaceful Assembly and Association

The Basic Law provides for freedom of assembly and the Government generally respected this right in practice. The Government routinely issued the required permits for public meetings and demonstrations.

Under the law, demonstration organizers must notify the police of their intention to demonstrate 1 week in advance. The police accept shorter notice if groups can satisfy the Commissioner of Police that earlier notice could not have been given for a march involving more than 30 persons and for an assembly of more than 50 persons. The police must explicitly object within 48 hours. No reply indicates no objection. The Public Order Ordinance, which pre-dates the 1997 handover and which empowers police to object to demonstrations on national security grounds, has never been invoked. If the police object, demonstration organizers may appeal to a statutory appeals board comprising members from different sectors of society. Both the board's proceedings and the police's exercise of power are subject to judicial review.

During the first half of the year, there were about 1,075 public meetings and processions, roughly half of which required notification. The police did not object to any demonstrations in the first half of the year.

On January 1, about 100,000 people rallied in support of universal suffrage and greater democracy with chants of "return power to the people" and "one man, one vote." On July 1, 200,000 to 400,000 people marched through central Hong Kong again in support of universal suffrage and greater democracy. These events were legally sanctioned and peaceful.

In addition to holding assemblies and marches on Hong Kong related issues, groups continued to demonstrate freely on issues sensitive to the central authorities. On June 4, approximately 50,000 to 80,000 people attended a candlelight vigil to commemorate the 15th anniversary of the 1989 massacre in Beijing's Tiananmen Square.

Falun Gong practitioners regularly conducted public protests against the crackdown on fellow practitioners in the PRC. In November, the Court of Appeal overturned the 2002 convictions of 16 Falun Gong practitioners who had been fined for obstructing the Central Government Liaison Office. The court upheld convictions against some of the Falun Gong practitioners for obstructing and assaulting policemen during their protest. The ruling affirmed that "fundamental freedoms" of assembly, demonstration, and expression were protected under the Basic Law.

The Basic Law provides for freedom of association, and the Government generally respected this right in practice. Since the 1997 handover, no applications for registration have been denied. During the first half of the year, the Societies Licensing Office of the police registered 974 new organizations.

The Societies Ordinance requires that new societies apply for registration within 1 month of establishment. The Government may refuse registration in the interest of national security, public safety, public order, or the protection of the rights and freedom of others. The Government also may refuse to register a political body that receives support from a foreign political organization or a Taiwan-based political organization. There have been no public reports that the Government has refused registrations under the Societies Ordinance this year.

c. Freedom of Religion

The Basic Law provides for freedom of religion, the Bill of Rights Ordinance prohibits religious discrimination, and the Government generally respected these provisions in practice.

Religious groups are not required to register with the Government and are exempt specifically from the Societies Ordinance. Catholics freely and openly recognized the Pope as the head of the Church, and the Vatican maintained a Diocese in the SAR overseen by a local Bishop. According to the Basic Law, the PRC Government has no authority over religious practices in the SAR.

Some groups, such as the Falun Gong and various traditional Chinese meditation and exercise groups (known collectively as "qigong" groups) that do not consider themselves religions, have registered under the Societies Ordinance. In July, a Falun Gong practitioner claimed that the group had submitted 72 applications to rent a government venue for its 2001 and 2002 conferences but was told each time that the venues were already booked. According to the Falun Gong practitioner, the group later discovered that, on the relevant dates, one of the requested venues was empty. Similarly, a private hotel canceled a Falun Gong banquet room booking because of the group's "terrorist risk." According to press reports, Falun Gong successfully sued the hotel in small claims court.

During April and May, the Government barred 41 Falun Gong practitioners from entering the SAR for "security reasons." Most of the practitioners were attempting to attend Falun Gong's annual conference at a privately owned facility. Approximately 350 practitioners were granted entry to attend the conference of approximately 700 persons.

d. Freedom of Movement, Foreign Travel, Emigration, and Repatriation

The Basic Law provides residents freedom of movement within Hong Kong, freedom of emigration, and freedom to enter and leave the territory, and the Government generally respected these rights in practice, with some prominent exceptions. Most residents obtained travel documents freely and easily from the SAR Government. There were limits on travel to the mainland imposed by the PRC Government.

As was the case before the handover, the Government does not recognize the Taiwan passport as valid for visa endorsement purposes.

The law does not provide for, and the Government did not use, forced exile.

The Government continued to deny some prominent overseas dissidents entry or visas to enter Hong Kong. In April, 12 Falun Gong practitioners from Taiwan and Macau were barred from entering Hong Kong for what officials described as "security reasons" (see Section 2.c.). In May, the Government denied a request to allow two 1989 Tiananmen Square student leaders to enter the SAR to participate in a conference focused on the Tiananmen Square massacre. Earlier in the year, other Tiananmen Square student leaders had been allowed to enter to engage in uncontroversial activities.

PRC authorities do not permit some Hong Kong human rights activists and pro-democracy legislators to visit the mainland. During the year, however, there were several prominent exceptions. In April, three pro-democracy Legco members traveled to Shenzhen to meet with the Deputy Chief of NPC Legislative Affairs Commission. In July, a political activist filmmaker was permitted to visit Shanghai, and, in September, his PRC-issued entry and exit permit was renewed for 10 years. In August, PRC officials denied entry to a prominent Democratic Party leader but later said this had been a bureaucratic mistake. And on September 30, nine newly elected lawmakers from the pro-democracy coalition went to Beijing to attend National Day celebrations.

The 1951 U.N. Convention Relating to the Status of Refugees and its 1967 Protocol do not extend to Hong Kong, and the SAR eliminated its temporary protection policy, which was extended only to Vietnamese in 1998. On a case-by-case basis, the Director of Immigration has discretion to grant refugee status or asylum in cases of exceptional humanitarian or compassionate need, but the Immigration Ordinance does not provide foreigners any right to have asylum claims recognized. The Government practice is to refer refugee and asylum claimants to a lawyer or to the office of the U.N. High Commissioner for Refugees (UNHCR). Those granted refugee status, as well as those awaiting UNHCR assessment of their status, receive a UNHCR subsistence allowance but are not allowed to seek employment or enroll their children in local schools. The UNHCR worked with potential host country representatives to resettle those few persons designated as refugees. Government policy is to repatriate all illegal immigrants, including those who arrive from the mainland, as promptly as possible. During the first half of the year, 1,683 illegal PRC immigrants were repatriated to the mainland.

Section 3     Respect for Political Rights: The Right of Citizens to Change Their Government

Residents' right to change their government is limited by the Basic Law, which provides for the selection of the Chief Executive by an 800-person selection committee (composed of individuals who are either directly elected, indirectly elected, or appointed), the direct election of only 30 of the 60 Legislative Council members, and the inclusion of appointed members to the elected district councils. The approval of the Chief Executive, two-thirds of the legislature, and two thirds of Hong Kong's National People's Congress delegates is required to place an amendment to the Basic Law originating in Hong Kong on the agenda of the PRC's National People's Congress, which has the sole power to amend the Basic Law.

The Government is authorized to exercise a high degree of autonomy and to enjoy executive, legislative, and independent judicial power. It contains an executive branch staffed by a professional and independent civil service, and a two-tiered legislative branch consisting of the Legislative Council and 18 district councils. The Basic Law provides for selection of a Chief Executive in 1997 and 2002 by the Election Committee made up of 800 local residents.

The Basic Law permits amendment of the Chief Executive selection process by a two-thirds majority of the Legislative Council, with the consent of the Chief Executive and the National People's Congress Standing Committee. The Basic Law states that "the ultimate aim is the selection of the Chief Executive by universal suffrage upon nomination by a broadly representative nominating committee in accordance with democratic procedures." Similarly, the Basic Law states that the "ultimate aim is the election of all the members of the Legislative Council by universal suffrage."

In April, the NPC Standing Committee issued a self-initiated interpretation of the Basic Law cutting short local debate and rejecting universal suffrage for Hong Kong in the 2007 and 2008 elections. The NPC also determined that the current 50-50 ratio for directly elected geographic seats and indirectly elected functional constituency seats in Legco must remain indefinitely in place. In addition, the NPC narrowed the circumstances in which Legco members would be permitted to initiate legislation. The NPC decision left room for amendments to the election processes, albeit strictly within the limits dictated by the NPC Standing Committee. During the year, a Task Force on Constitutional Development solicited local views on selecting the Chief Executive and the Legco in 2007 and 2008 in line with the NPC's determination. In December, the Task Force issued a report, which included, among other ideas: Expanding the Election Committee size from 800 to between 1,200 and 1,600 and broadening its representation; broadening the representation and size of the group, currently about 163,500 voters, that selects Election Committee members; and increasing the number of seats in the Legco from 60 to between 70 and 80, while maintaining the balance between geographic and functional constituencies. The Chief Secretary, who heads the Government's civil service, said that the proposals made clear that the people expect the Government to move eventually toward the goal of universal suffrage.

In September, Legislative Council members were elected to 4-year terms; 30 members were elected directly from geographic districts through universal suffrage, and 30 from functional or occupational constituencies. Candidates who considered themselves democracy advocates won 18 of the 30 seats elected on a geographic basis and 25 seats overall. There were 199,539 persons eligible to vote in the functional constituencies.

Prior to the September elections, several newspapers reported that some pro-PRC companies and organizations were demanding that staff use their mobile phone cameras to photograph their ballots. In response to these allegations, which pro-PRC candidates denied, the Electoral Commission banned mobile phone cameras in the polling booths and removed booth curtains so that polling officials could view booth activity. No incidents of ballot photographing were reported.

The Government was criticized for not having enough ballot boxes at the polls on Election Day. Ballot box shortages forced some polling stations to close temporarily and caused long lines and delays. There were accusations that some election officials opened sealed ballot boxes in order to make room for additional ballots. Premature opening of ballot boxes is considered a violation of international election standards. There were no accusations of ballot tampering connected with the incidents, and it was generally believed that there was no systematic effort to illegally alter the outcome of the election. The Electoral Affairs Commission conducted an investigation and issued a report in December stating that a ballot box design flaw led to the problems but that the integrity of the election was not affected.

The Electoral Affairs Commission received more than 1,600 complaints on Election Day?up from 1,427 complaints during the 2000 election. Approximately 25 percent involved complaints about the nuisance caused by candidates' loudspeakers, advertisements, and telephone canvassing. Election guidelines call for campaign-free zones outside the polling stations, specify how advertisements should be prepared, recommend that advertisements carry the name and address of the publisher, and require all statements to be factually accurate. Approximately 10 percent of the complaints were about voting arrangements, such as long lines and the shortage of ballot boxes. There were six complaints of bribery and one complaint of coercion. The Electoral Affairs Commission promised to investigate thoroughly all complaints. Meanwhile, the ICAC received and is working on 87 complaints regarding the election -up slightly from 2000.

The Basic Law substantially limits the ability of the legislature to influence policy by requiring separate majorities among members elected from geographical and functional constituencies to pass a bill introduced by an individual member. Another Basic Law provision prohibits the Legislative Council from putting forward bills that affect public expenditure, political structure, or government operations. Bills that affect government policy cannot be introduced without the Chief Executive's written consent. The Government has adopted a very broad definition of "government policy" in order to block private member bills, and the President of the Legislative Council has upheld the Government's position.

The Executive Council (Exco) functions as the Chief Executive's cabinet. Exco includes 11 political appointees who run the 11 policy bureaus, and the Chief Secretary, Financial Secretary, and Justice Secretary, who are also political appointees. These 14 members are chosen by the Chief Executive and approved by the PRC Government. The Exco also includes members of two political parties, a labor leader, and two other private citizens, also appointed by the Chief Executive.

District Councils are responsible for advising the Government on matters affecting: (1) the well being of district residents; (2) the provision and use of public facilities; and (3) the use of public funds allocated for local public works and community activities. The District Council Ordinance gives the Chief Executive authority to appoint 102 out of 529 of the District Councilors, and he exercises this power in practice.

Hong Kong sends 36 delegates to the PRC's National People's Congress (NPC). In 2002, Hong Kong's NPC delegates were elected to a 5-year term by an NPC-appointed committee of 955 residents. Politicians and human rights activists criticized the election process as undemocratic and lacking transparency. In September, for the first time in Hong Kong's history, two local NPC delegates won directly elected seats in the Legco. One NPC delegate lost his bid for a directly elected Legco seat.

The Government vigorously and with apparent success combated official corruption through the Prevention of Bribery Ordinance and the Independent Commission Against Corruption.

The law provides for access to government information, and, in practice, such information was provided to both citizens and non-citizens with exceptions that are narrowly defined and could be appealed.

Women hold 11 of the 60 Legislative Council seats (the same number as in the previous Legislative Council) and made up between 17 and 23 percent of membership in the major political parties. The President of the previous Legislative Council was a woman, as are the heads of several government departments. More than one-third of civil servants were women, and 2 of the 15 most senior Government officials were women.

There were no ethnic minorities in the Legislative Council, but there were a number of ethnic minorities in senior civil service positions.

Section 4     Governmental Attitude Regarding International and Nongovernmental Investigation of Alleged Violations of Human Rights

A wide variety of domestic and international human rights groups generally operated without government restriction, investigating and publishing their findings on human rights cases. These organizations had unrestricted contacts with the local community and with groups overseas. Government officials were generally receptive to, and respectful of, their views. Prominent human rights activists critical of the PRC also operated freely and maintained permanent resident status in Hong Kong, but overseas dissidents sometimes had difficulty gaining entry to the SAR.

Under the Basic Law, the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social, and Cultural Rights apply to Hong Kong. The PRC Government transmits Hong Kong's reports, mandated under these covenants, without editing, to the U.N. The SAR Government and several domestic NGOs have testified before several U.N. human rights committees, including the U. N. Human Rights Commission in Geneva. The hearings, including the Commission's concerns, have received widespread and balanced press coverage.

The Office of the Ombudsman has wide powers to investigate and report on public grievances stemming from administrative actions of the executive branch and other designated public bodies. The Ombudsman may protect complainants when publishing investigative reports. In addition to responding to public complaints, the Ombudsman also initiates investigations. The Ombudsman has the option of reporting directly to the Chief Executive if organizations refuse to act upon his recommendations, or if the violations are considered serious. The Chief Executive is bound by law to present such reports to the legislature. The Ombudsman (Amendment) Ordinance, passed in 2001, strengthened the independence of the Ombudsman by de-linking the office from government systems and processes. It empowers the office to set terms and conditions of appointment for staff and to manage its own financial and administrative matters.

The Ombudsman does not have oversight authority over the police, the Independent Commission Against Corruption, or the Office of the Privacy Commissioner for Personal Data, although it may investigate complaints of noncompliance with the code on access to information by government departments, including the police and the Independent Commission Against Corruption. With regard to election-related complaints, the Ombudsman may investigate only those complaints made against the Registration and Electoral Office, not those made against the Electoral Affairs Commission.

Section 5     Discrimination Based on Race, Sex, Disability, Language, or Social Status

The Basic Law provides that all Hong Kong residents are equal before the law. The Bill of Rights Ordinance, which incorporates into law the International Covenant on Civil and Political Rights, entitles residents to the civil and political rights recognized therein "without distinction of any kind, such as race, color, sex, language, religion, political or other opinion, national or social origin, property, birth or other status." The ordinance applies only to the Government, public authorities, and persons acting on their behalf. It does not apply to private persons or entities. Three pieces of anti-discrimination legislation--the Sex Discrimination Ordinance, the Disability Discrimination Ordinance, and the Family Status Discrimination Ordinance--make it illegal for any person or entity (public or private) to discriminate on the grounds of sex, marital status, pregnancy, disability, or family status, and prohibits behavior such as sexual harassment, harassment or vilification on the grounds of disability, and discriminatory advertising. The Disability Discrimination Ordinance also protects persons with HIV/AIDS from discrimination, and permits them to take legal action or seek assistance from the Equal Opportunity Commission (EOC) through the formal complaint process.

The EOC was established in 1996 to help eliminate discrimination and to promote equality of opportunity without regard to gender, disability, and family status. In December, the Government appointed the former Privacy Commissioner to a 5-year term as EOC Commissioner.

During the first half of the year, the EOC received 275 complaints, of which 261 required investigation and conciliation. The Commission concluded 381 cases, including cases from previous years. Of these, 168 were discontinued for various reasons, including withdrawal by the complainant, agreement reached before an investigation was completed, and a lack of substance. Of the remaining concluded cases, 114 were successfully conciliated. Legal assistance remains available for unsuccessful complainants.

Women

Local public health officials remain concerned about violence against women, particularly among new immigrants from the mainland. The Domestic Violence Ordinance allows a woman to seek a 3 month injunction, extendable to 6 months, against her husband. Domestic violence also may be prosecuted as common assault. The Government enforced the law and prosecuted violators, but sentences typically consisted only of injunctions or restraining orders. During the first half of the year, there were 3,298 cases of domestic violence reported to the Social Welfare Department, which receives reports from the police, social workers, the Health Department, and volunteer organizations.

The Government funded programs such as family life education counseling, a hotline service, temporary housing, legal aid, and child protective services. It also sponsored public education and media programs through the Women's Commission to promote public awareness and encourages women to seek early professional assistance.

There were 46 cases of rape reported to the police during the first half of the year and 70 in all of 2003. The 2002 Statute Law (Miscellaneous Provisions) Bill criminalizes marital rape. In 2003, the legislature passed an amendment to the Crimes Ordinance expressly clarifying that the term "unlawful sexual intercourse" could be applied both outside and inside the bounds of marriage. During the first half of the year, 492 indecent assault cases were reported to the police.

In April, Amnesty International criticized the Government for failing to take appropriate action prior to the killings of a mother and her two daughters. The police launched an internal investigation after acknowledging that the woman sought help at a police station hours before her husband allegedly killed her. An investigation by the Social Welfare Department determined that the local district government where the killings occurred lacked adequate social services to deal with its expanding population. In November, the Secretary for Health, Welfare and Food announced that more resources would be allocated to tackle the problem of domestic violence.

The number of women seeking help from the crisis center for victims of sexual violence more than tripled from 2001. The center handled 99 cases in the first half of the year. A study released by the center during the year showed that many women were reluctant to come forward, with one in six victims waiting as long as 10 years before reporting an attack.

Prostitution is legal, but there are laws against activities such as causing or procuring another to be a prostitute, living on the prostitution of others, or keeping a vice establishment. Hong Kong is a transit and destination point for persons trafficked for the purposes of sexual exploitation (see Section 5, Trafficking.).

The Sex Discrimination Ordinance prohibits sexual harassment of women seeking employment or already working in an organization. The EOC reported 40 sexual harassment complaints in the first half of the year. In August, the Government agreed to amend the ordinance to extend the definition of sexual harassment in schools in order to prevent sexually hostile environments. The change, proposed by the EOC, would close a loophole that allowed behavior in schools that is banned in the workplace. It covers conduct not specifically directed at a person, such as chanting obscene slogans or displaying posters with sexual content. The changes were proposed in response to allegations of sexual harassment at a Chinese University orientation camp in 2002.

Women faced discrimination in employment, salary, welfare, inheritance, and promotion. A survey released in March found that nearly 80 percent of women workers feel they are the victims of discrimination.

Women entered professional fields, including sciences and engineering, law, teaching, accounting, social sciences, health, and medicine, in growing numbers. As of June, 35.1 percent of professionals employed in these fields were women. About 21 percent of judicial officers and judges were women. In the Legislative Council, women held 11 of the 60 seats. According to a survey released in February, about three-quarters of private companies have women in senior management positions, and women occupied more than a quarter of the senior management posts. Women were still disproportionately represented in the lower echelons of the work force.

The law treats men and women equally in inheritance matters, although women still faced discrimination based on traditional practices, such as in the inheritance of homes in rural areas of the New Territories.

Children

The Government supported children's rights and welfare through well-funded systems of public education, medical care, and protective services. The Education Department provided schooling for children between 6 and 15 years of age and placement services for non-Chinese speaking children. Education is free and compulsory through grade nine. The Government supported programs for custody, protection, day care, foster care, shelters, small group homes, and assistance to families.

The Government provided subsidized, quality medical care for all children who are residents.

In 2003, legislation raised the age of criminal responsibility for children from 7 to 10 years. During the first half of the year, there were 86 youths under the age of 16 who were incarcerated: 19 in prison, 15 in training centers, 25 in detention centers, 25 in rehabilitation centers, and 2 in drug addiction treatment centers.

Statistics on child abuse and exploitation were limited. During the first half of the year, there were 459 child abuse cases reported to the police: 257 involved physical abuse (referring to victims under 14 years of age) and 202 involved sexual abuse (referring to victims under 17 years of age).

In December 2003, the Government enacted the Prevention of Child Pornography Ordinance, which criminalizes the making, production, distribution, publication, advertising, and possession of child pornography. It also prohibits the procurement of children for making pornography, extends the application of certain sexual offense provisions to acts committed against children outside of Hong Kong, and prohibits any arrangement or advertising relating to commission of those acts. In May, police used the new law to conduct a sweep of child pornography websites and arrested 18 persons.

The Government provided parent education programs in all 50 of the Department of Health's Maternal and Child Health Centers, which included instruction on child abuse prevention. The Social Welfare Department commissioned research on domestic violence, including child abuse. The police maintained a child abuse investigation unit and a child witness support program. A Child Care Center Law helps prevent unsuitable persons from providing childcare services and facilitates the formation of mutual help childcare groups. There are substantial legal penalties for mistreatment or neglect of minors.

Trafficking in Persons

There is no law prohibiting trafficking in persons. There are various laws and ordinances that allow law enforcement authorities to take action against traffickers. Despite robust efforts by the SAR Government to stop such activities, Hong Kong was a point of transit and destination for persons trafficked for sexual exploitation and forced labor from China and Southeast Asia. It was difficult for the Government to identify trafficking victims from among the larger group of illegal immigrants.

Traffickers have used forged or illegally obtained travel documents to attempt to smuggle persons through the Hong Kong airport. During the first half of the year, authorities intercepted 1,288 forged travel documents and arrested 12 persons for related offenses.

A Hong Kong University study on the trafficking of women for the purposes of prostitution found that from 1990 to 2000, there were 39 cases of women lured to Hong Kong with false promises of legitimate employment who were forced or coerced to work as prostitutes. Large numbers of illegal immigrant women from the mainland voluntarily engaged in prostitution with the reported assistance of organized criminal groups.

Prostitution is legal, but there are laws against some related activities that make prostitution illegal in certain circumstances (see Section 5, Women). The authorities combat illegal prostitution by nonresidents through strict immigration controls and by arresting and prosecuting illegal prostitutes and their employers. During the first half of the year, 5,133 nonresident women prostitutes were arrested. Most of those arrested were deported rather than formally charged. The police do not keep statistics on the number of persons arrested who are employers of prostitutes. However, the Crimes Ordinance stipulates that a person who controls another person for purposes of prostitution can, upon conviction and indictment, be imprisoned for 14 years, and a person who knowingly lives wholly or in part on the earnings of prostitution of another can be sentenced to 10 years' imprisonment. During the first half of the year, 41 persons were convicted of these offenses, and, in 2003, 119 people were convicted. The majority of those convicted were sentenced to immediate imprisonment.

During the year, there were no known reports of persons being trafficked into the SAR to work as domestics.

Provisions in the Immigration Ordinance, the Crimes Ordinance, and other relevant laws enabled law enforcement authorities to take action against trafficking in persons. The courts can impose heavy fines and prison sentences for up to 14 years for such activities as arranging passage of unauthorized entrants into Hong Kong, assisting unauthorized entrants to remain, using or possessing a forged, false or unlawfully obtained travel document, and aiding and abetting any person to use such a document. The Security Bureau is responsible for combating migrant trafficking and overseeing the police, customs, and immigration departments, which are responsible for enforcing anti-trafficking laws. Law enforcement officials received special training on handling and protecting victims and vulnerable witnesses, including victims of trafficking.

The Government provided legal aid to those taking legal action against an employer, and immunity from prosecution for those who assist in the investigation and prosecution of traffickers. The Social Welfare Department and local NGOs also provided an array of social services to victims of trafficking. The Government did not provide funding to foreign or domestic NGOs for services to victims. The Government also tried to prevent trafficking by distributing pamphlets, in a wide range of languages, to workers about their rights.

Persons with Disabilities

Discrimination against physically and mentally disabled persons persisted in employment, education, and the provision of some public services. The Disability Discrimination Ordinance calls for improved building access and sanctions against those who discriminate. Also, the Buildings Ordinance was amended in 2003 to update design requirements. However, despite inspections and the occasional closure of noncompliant businesses, access to public buildings (including public schools) and transportation remained a serious problem for persons with disabilities.

The Government offered an integrated work program in sheltered workshops and provided vocational assessment and training. No comprehensive statistics were available on the number of persons with disabilities in the work force, but the last government survey conducted in 2000 estimated that there were approximately 269,500 persons with one or more disabilities, including 225,600 persons with physical disabilities and 52,700 with mental disabilities. According to the survey, of the 269,500 persons with disabilities, 52,500 were employed and 59,700 were considered "economically active," including small business owners and street vendors. However, a consortium of organizations representing persons with disabilities reported in 2002 that approximately 700,000 residents were disabled, about half of whom were able to work. As of June 30, there were 3,162 persons with disabilities employed as civil servants out of a total civil service work force of 163,101. During the first half of the year, the Labor Department's Selective Placement Division found jobs for 1,057 of 2,226 disabled job seekers. Approximately 10,400 students out of a school population of 840,000 (1.2 percent) were disabled.

The EOC sponsored a variety of activities to address discrimination against persons with disabilities, including youth education programs, distributing guidelines and resources for employers, carrying out media campaigns, and co-sponsoring seminars and research.

National/Racial/Ethnic Minorities

At year's end, a bill to prohibit racial discrimination in employment, education, provision of goods and services, use and renting of facilities or household properties, consultative and mandatory organizations, lawyers' apprenticeship practices, and government and public bodies was on the Legco's agenda for 2004 05.

The Government's legally non-binding "Code of Practice for Employers," put into place in 2001 and designed to prevent discrimination, states that race, among other factors, should not be considered when hiring employees. The Government's Race Relations Unit funded numerous projects promoting racial harmony.

Minorities, who make up approximately 5.1 percent of the population, were well represented in the civil service and many professions. Foreign domestic workers, most of whom are from the Philippines and Indonesia, may be vulnerable to discrimination. An Indonesian Migrant Workers Union was established in 2000 to unite Indonesian domestic helpers throughout Asia to protect members from abuse and exploitation. The organization served the approximately 87,850 Indonesian domestic helpers who worked in the SAR. Similar organizations worked for the interests of Philippine domestic helpers, of whom there were approximately 121,500.

Section 6     Worker Rights

a. The Right of Association

The law provides for the right of association and the right of workers to establish and join organizations of their own choosing. Trade unions must register under the Trade Unions Ordinance. The basic precondition for registration is a minimum membership of seven persons. The Trade Unions Ordinance does not restrict union membership to a single trade, industry, or occupation and the Government did not discourage or impede the formation of unions. Trade unions were independent of political parties and the Government.

During the first half of the year, 12 new unions were registered, while 3 were deregistered; there were 698 registered trade unions. In 2003, 21.8 percent of the 3,066,800 salaried employees and wage earners belonged to a labor organization.

The Employment Ordinance includes provisions that protect against anti-union discrimination. Violation is a criminal offense with a maximum fine of $12,800 (HK$100,000). Employees who allege such discrimination have the right to have their cases heard by the Labor Relations Tribunal. The Tribunal may order reinstatement of the employee, subject to mutual consent of the employer and employee. The Tribunal may award statutory entitlements (for instance, severance pay) and compensation. The maximum amount of compensation is $19,230 (HK$150,000). Some labor activists have complained that the Labor Tribunals tended to push conciliation rather than issue orders.

The Basic Law commits the SAR to 41 International Labor Organization (ILO) conventions, and the Government has amended labor legislation and taken administrative measures to comply.

The Employment and Labor Relations (Miscellaneous Amendments) Ordinance permits the cross-industry affiliation of labor union federations and confederations and allows free association with overseas trade unions. Notification of the Labor Department within 1 month of affiliation is required.

b. The Right to Organize and Bargain Collectively

In 1997, the pre-handover Legislative Council passed three laws that greatly expanded the collective bargaining powers of workers, protected them from summary dismissal for union activity, and permitted union activity on company premises and time. Had they not been amended, the new ordinances would have enabled full implementation of ILO Conventions 87, 98, and 154. However, in 1997, after consultation with the Labor Advisory Board, the Provisional Legislature repealed the Employee's Right to Representation, Consultation, and Collective Bargaining Ordinance and the Employment (Amendment) Ordinance, and amended the Trade Union (Amendment) Ordinance. The repeals removed the new legislation's statutory protection against summary dismissal for union activity; the Government asserted that existing law already offered adequate protection against unfair dismissal arising from anti-union discrimination.

The 1997 Employment and Labor Relations (Miscellaneous Amendments) Ordinance removes the legal stipulation of trade unions' right to engage employers in collective bargaining. The ordinance bans the use of union funds for political purposes, requires the Chief Executive's approval before unions can contribute funds to any trade union outside of the SAR, and restricts the appointment of persons from outside the enterprise or sector to union executive committees. In a few trades such as tailoring and carpentry, wage rates were determined collectively in accordance with established trade practices and customs rather than a statutory mechanism, but collective bargaining was not practiced widely. Unions were not powerful enough to force management to engage in collective bargaining. The Government did not engage in collective bargaining with civil servants' unions.

The Workplace Consultation Promotion Unit in the Labor Department facilitated communication, consultation, and voluntary negotiation between employers and employees. Tripartite committees for each of nine sectors of the economy included representatives from trade unions, employers, and the Labor Department.

Work stoppages and strikes are legal. There are some restrictions on this right for civil servants. Although there is no legislative prohibition of strikes, in practice, most workers had to sign employment contracts that typically stated that walking off the job is a breach of contract, which could lead to summary dismissal.

There were a number of labor stoppages during the year, including a series of strikes by swimming pool lifeguards concerning staff and pay cuts. Chicken wholesalers struck over an avian flu-related ban on imports of mainland origin chicken.

There are no export processing zones.

c. Prohibition of Forced or Compulsory Labor

The law prohibits forced or compulsory labor. Although the law does not specifically prohibit forced or compulsory labor by children, there were no reports that such practices occurred.

d. Prohibition of Child Labor and Minimum Age for Employment

The Employment of Children Regulations prohibit employment of children under the age of 15 in any industrial establishment. Children 13 and 14 years of age may work in certain non industrial establishments, subject to conditions aimed at ensuring a minimum of 9 years' education and protecting their safety, health, and welfare. The Labor Department conducted regular workplace inspections to enforce compliance with the regulations. During the first half of the year, the Labor Department conducted 57,936 inspections and discovered one violation of the Employment of Children Regulations, resulting in the assessment of $450 (HK$3,500) in fines. The regulations limit work hours in the manufacturing sector for persons 15 to 17 years of age to 8 hours per day and 48 hours per week between 7 a.m. and 7 p.m. They also prohibit, for persons under 18 years of age, overtime in industrial establishments with employment in dangerous trades.

e. Acceptable Conditions of Work

There is no statutory minimum wage except for domestic workers of foreign origin. Aside from a small number of trades where a uniform wage structure exists, wage levels customarily are fixed by individual agreement between employer and employee and are determined by supply and demand. Some employers provided workers with various kinds of allowances, free medical treatment, and free subsidized transport. The average wage generally provided a decent standard of living for a worker and family. Two-income households were the norm. There are no regulations concerning working hours, paid weekly rest, rest breaks, or compulsory overtime.

The minimum wage for foreign domestic workers was approximately $419 per month (HK$3,270). The standard workweek was 48 hours, but many domestic workers worked far longer hours. The standard contract law requires employers to provide foreign domestic workers with housing, worker's compensation insurance, travel allowances, and food or a food allowance in addition to the minimum wage, which together provide a decent standard of living. Foreign domestic workers can be deported if dismissed. During the first half of the year, 48 foreign domestic workers filed suit for maltreatment.

The Occupational Safety and Health Branch of the Labor Department is responsible for safety and health promotion, enforcement of safety management legislation, as well as policy formulation and implementation.

The Factories and Industrial Undertakings Ordinance, the Occupational Safety and Health Ordinance, the Boilers and Pressure Vessels Ordinance, and their 35 sets of subsidiary regulations regulate safety and health conditions. During the first half of the year, the Labor Department conducted 61,707 inspections of workplaces and issued 983 summonses, resulting in a total of $1,312,500 (HK$10,237,900) in fines. Worker safety and health has improved over the years, but serious problems remained, particularly in the construction industry. During the first half of the year, there were 9,820 occupational injuries, of which 3,934 were classified as industrial accidents. There were 10 fatal industrial accidents. Employers are required under the Employee's Compensation Ordinance to report any injuries sustained by their employees in work-related accidents. There is no specific legal provision allowing workers to remove themselves from dangerous work situations without jeopardy to continued employment.