To better pave the way for the return of Macao, the Second Session of the Standing Committee of the Ninth National People’s Congress (NPC) reviewed and adopted a name list, which included 60 Macao residents, for appointment to the Preparatory Committee of the Macao Special Administrative Region (Macao SAR), on April 29, 1998. The Preparatory Committee of the Macao SAR, founded at the People’s Hall, Beijing on May 5th in that year, is a special organization under the NPC. Its main responsibilities entail preparing for the establishment of the Macao SAR, and providing for specific methods of creating the transitional government, legislative council and judicial organizations for the Macao SAR, in accordance with relevant decisions of the NPC, and to incorporate principles of state sovereignty and further the interests of a stable transitional phase.

I. Formulation of the Basic Law and its Signal Significance

The Basic Law of the Macao SAR of the People’s Republic of China (hereinafter "the Basic Law") represents a milestone legal document for the coming epoch. It underwent four years and five months of scrutiny, from draft legislation to enactment. On April 13, 1988, the First Session of the Seventh NPC resolved to appoint a committee responsible for drafting a Basic Law for the Macao SAR. The Drafting Committee comprised 48 members, among whom 22 were from the Macao region. The first plenary committee meeting session was held on October 25, 1988. In the course of the entire draft process for the Basic Law, people of all nationalities in China, including Macao residents, bolstered the Drafting Committee's efforts. This was conducive to close coordination with the Consultative Committee of the Basic Law, which comprised 90 members from all social spheres in Macao. Having successively held 9 plenary sessions, 70 group meetings on special topics, 3 enlarged director meetings, 3 consultation committee meetings of choosing the design of the Regional Flag and the design of the Regional Emblem, the Drafting Committee had collected thousands of advice and suggestions after three stages of consultation and revision. On March 31, 1993, the First Session of the Eighth NPC reviewed and adopted the Basic Law of Macao (Draft) submitted by the Drafting Committee. On the same day, president Jiang Zemin decreed No. 3 presidential order promulgating the Basic Law. The promulgation of the Basic Law, as a basic law of China reflecting the policy of "one country, two systems", has its profound historic and immediate significance and will produce a great international impact.

1. Profound Historical Significance. Modern Chinese history over the last 100 years has been rife with blood and tears. Chinese people were subjected to remorseless bullying and humiliation by foreign aggressors over the preceding century. A great many persons with lofty ideals, one stepping into the breach as another fell, fought tenaciously for the unification and fortification of the country, and thus attained the stature of epic heroes. The founding of the People’s Republic of China in 1949 has ushered in a new epoch in Chinese history, and the Chinese people have thereafter closed ranks in a united stand against aggression. The promulgation of the Basic Law legally signifies that the last inch of Chinese territory occupied by foreigners be taken back by the Chinese Government on December 20, 1999. Thus the long-cherished common aspiration of the Chinese people for the recovery of Hong Kong and Macao will be fulfilled.

2. The Great Immediate Significance. The Basic Law is the legalization of "one country, two systems" policy. Its existence is a testament to the fact that the grand concept of "one country, two systems", in realization of the unification of the Motherland, can indeed be fulfilled. The "one country, two systems" paradigm for re-unification of the Motherland comports well with the reform and opening-up policy for the interior of China, and the long-term interests of both the country and nationalities. It is beneficial to the development of the inland society and conducive to a booming economy. It also conforms to the immediate interests of Macao residents, tallies with the actual situation in Macao and is helpful to the long-term development and stability of the Macao region. The all-around guarantee of the Basic Law will surely promote the confidence of Macao residents’ in exercising their basic rights and being the masters of their own affairs, thus greatly encouraging them to strive for a better tomorrow.

3. Major International Impact. By initiating the concept of "one country, two systems", the Chinese government accommodates the differing social systems by eliminating the antithesis between the two, out of consideration for the interests of all the various segments concerned. This is a great pioneering step in the world, and shows that many problems and disputes between states can be settled peacefully with mutual respect, understanding and accommodation. The enactment of the Basic Law, therefore, shows that the Sino-portuguese governmental relationship will be further improved due to a proper settlement of the Macao problem. It has also set an example for other countries from which to draw lessons when dealing with similar problems and disputes. It is beneficial to friendship among people of all nations and conducive to lasting peace in the world.

A complete and systematic understanding of the policy of "one country, two systems" is indispensable in correctly evaluating the status of the Basic Law and more than superficially comprehending the fundamental principles reflected throughout it.

1. The Status of the Basic Law. The Basic Law of Macao was enacted by the NPC. It is, therefore, primarily a national law by nature and position. It is also an important component of the Chinese socialist legal system. It is evident that the Basic Law of Macao is not a local law: it is the obligation of the Central People’s Government and all of its departments, provinces, autonomous regions and municipalities directly under the Central Government to abide by the Basic Law, a national law, and not to interfere in the affairs which the Macao SAR administers on its own behalf in accordance with the Basic Law. All offices set up in the Macao SAR by departments of the Central Government, or by provinces, autonomous regions and municipalities directly under the Central Government, and the personnel of such offices, shall abide by the laws of the Macao SAR. This requirement is in response to the demand for implementing the policy of "one country, two systems" and for maintaining the unity of the country.

The Basic Law is not only a national law, but also a constitutive law, as far as the Macao SAR is concerned. In the light of the Basic Law, the systems and policies practised in the Macao SAR, including the social and economic systems, the system for safeguarding the fundamental rights and freedoms of Macao residents, the executive, legislative and judicial systems, and the relevant policies, shall be based on the provisions of the Basic Law. No laws, ordinances, administrative regulations and other normative documents of Macao shall contravene the Basic Law. This provision fully manifests the supremacy of the Basic Law relative to other laws in the Macao SAR, and it thus assumes the stature of a constitutive law.

2. The Fundamental Principles Reflected in the Basic Law. The fundamental principles reflected in the Basic Law include:

A) Sovereignty Principle. The basic presupposition of "one country, two systems" is to maintain one country, in defense of state sovereignty. To have "two systems" by abandoning state sovereignty and not to have one country, is, indeed, to split that country. Also, it is fundamentally inimical to the original meaning of "one country, two systems". Preservation of the sovereignty principle is the guiding precept, as the Basic Law is enacted to implement the policy of "one country, two systems". It is expressly provided in the Basic Law that the Macao SAR is a local administrative region directly under the Central People’s Government, and all of its autonomous powers emanate from authorization by the Central Government. It also provides that the Central People’s Government shall be responsible for foreign affairs and defense relating to the Macao SAR. The purpose of these provision is to reflect the principle of state sovereignty.

B) The Principle of a High Degree of Autonomy. With the presupposition of preserving one country, to properly safeguard a high degree of autonomy in the Macao SAR is the original meaning and important context of "one country, two systems". "Two systems" in itself denotes a high degree of autonomy. The Basic Law clearly provides that under the authorization of the Central Government, the Macao SAR enjoys executive, legislative and independent judicial power, including that of final adjudication, and enjoys the right to conduct relevant external affairs on its own in accordance with the Basic Law. This provision has established, by law, the position of a high degree of autonomy of the Macao SAR and thus guarantees effective autonomy in the Macao SAR. In addition, the Basic Law also clearly provides that the executive authorities and legislature of the Macao SAR shall be composed of permanent residents of the Macao SAR. This provision has provided sufficient legal guarantee for implementing the principle of "Macao people governing Macao".

C) The Principle of Retaining Stability. In order benefit the smooth transition and to retain long-term stability in and the development of Macao’s society, the Basic Law, relative to economics, culture and education, strives to retain as much as possible of the status quo and avoid tremendous change, in the interests of stability. For example, the Basic Law provides clearly that the subsisting capitalist system and the way of life shall remain unchanged for 50 years in Macao, and the socialist system and its policies shall not be practised in the Macao SAR. It also provides that the right of private ownership of property shall be protected, the laws previously in force in Macao shall be maintained, and the composition of the Legislative Council of the Macao SAR shall be made up of members directly or indirectly elected and appointed. All these provisions fully reflect the fundamental principle of remaining stable.

D) The Principle of the Gradual Development of Democracy. Under the Portuguese colonial administration, Macao residents do not enjoy full democratic rights, even though they have some of their rights. For example, Macao governors are always appointed directly from Portugal by the Portuguese president, and Macao local residents have no right to choose. After the return of Macao, Macao residents, in accordance with the provisions of the Basic Law, shall be the real masters of Macao, and enjoy a high degree of autonomy per the operation of law. This will provide necessary conditions and opportunities to promote democracy in its real sense. Macao residents not only have the right to elect their Chief Executive on their own, but also have the right to participate in various social affairs. The promotion of democracy shall proceed from the local actual situations as a whole, considering historic causes, present social factors, political demands of people from various social strata and levels of democratic awareness. Only in this way can social stability be retained and the economy be steadily increased. With regard to the actual situation in Macao, the Basic Law prescribes that the members directly elected in the Legislative Council of the Macao SAR should be increased gradually in proportion, and that in year 2009 and thereafter, the methods for the selection of the Chief Executive and the formation of the Legislative Council can be amended after certain procedures therefor have been set in place. All these prescriptions, which provide ample scope for Macao’s democratic politics, fully reflect the fundamental principle of establishing Macao’s democratic body politic step by step.

III. The Enlightenment from the Grand Concept of "One Country, Two Systems."

To sum up, we can draw a few conclusions from the successful practice of the grand concept of "one country, two systems" in Macao.

1. Correct Concept. The great concept of "one country, two systems", initiated by Deng Xiaoping in the early 80’s, has increasingly proved to be scientifically correct and practicable, with over two years’ practical test after the foundation of the Hong Kong SAR and the active and orderly test promoted by the Preparatory Committee of the Macao SAR.

2. Ample Safeguards. Changes taking place in the social and political arenas in Macao are unprecedented. The Joint Declaration of the Government of the People’s Republic of China and the Government of the Republic of Portugal on the Issue of Macao signed on April 13, 1987 has fixed the timetable for Macao to return and determined the policies of the Chinese government to be practised in Macao. The enactment of the Basic Law has scientifically and correctly finalized these policies into legal terms. It fundamentally ensures a long-term prosperity and stability for Macao’s society. The value and importance of Macao have been decidedly demonstrated with the passage of time.

3. History. The return of Macao, coinciding with the turn of the century, will add new content to the beginning of the third millennium of the new human era. Macao will surely be one of the important focuses of the world at the dawn of the new millenium. The return of Macao does not only mean the end of the rule of Portugal. It also marks the beginning of the time for "one country, two systems", a high degree of autonomy and for "Macao People governing Macao". It does not indicate the end of Macao’s development, but, rather a new starting point, which will boost it to an even higher level. Macao residents are not merely the witnesses of the historic transition, but also the active promoters and participants of the transition; their active role is to take part in the ushering in a new historical era for Macao, with an unparalleled sense of time, sense of mission and sense of responsibility.

4. Severe Challenges. The return of Macao will initiate new situations and new tasks. It will also impose new demands, new expectations and new challenges on Macao residents. In the face of these challenges, it is a completely new test for Macao residents to choose what they want to be: a strong people, fighting in turbulent currents, or a weaker one, drifting with the tide; courageous ones making unremitting efforts to improve themselves; or cowards motivated only by self-interest. It is because of this that Macao residents should make full and timely use of all the effects caused by reorganization and composition, by reform and pioneering, by balance and co-ordination and by encouragement. These effects are brought about by the return of Macao to the Motherland. Macao residents should actively seize the day. To them, and especially to the majority of the Chinese people, the return is like a propellant accelerating their advancing steps to greet a new tomorrow.

5. Close Attention to Focal Points. As long as we fully exploit the effects caused by the return, and adjust the social factors and essential productive factors to their best status to form a joint force to promote the development of society and the economy in Macao, the security coefficient in realizing the long-range prosperity and stability of Macao will be more and more increased. Under the guidance of "one country, two systems", Macao, like Hong Kong, will surely be the world’s focal point. Macao, together with Hong Kong, will prove, with their glowing achievements, the grand concept of "one country, two systems" to be scientific and feasible.

In accordance with what Edmund Ho Hau Wah, the first Chief Executive of the Macao SAR has stated, the return of Macao to its Motherland will soon implement the principle of "one country, two systems" initiated by the former Chinese leader Deng Xiaoping. It is an honor for Macao people and also a historic task they must face. The practice of "one country, two systems" has exerted a far-reaching impact on both the State and Macao. Macao's future prospects are tied to the "one country, two systems" precept. With firm and persistent courage, Macao residents must bring their intelligence into full play. With the powers conferred by the Basic Law, Macao residents should uphold "one country, two systems" to build Macao into a prosperous and progressive society.