(If pressed on criteria for exercise of discretion)

Application will be considered on their merits but it has

always been the intention to use this provision very sparingly.

Concerns of Hong Kong Public Service

31.

We are fully aware of the concerns of civil servants

in Hong Kong. They have continued during these uncertain times

to show an admirably responsible attitude to their work and

to the people whom they serve. They are naturally worried about the security of their jobs and the preservation of their

conditions of service after 1997. It is our aim to reach an

agreement with the Chinese that maintains the maximum possible

degree of continuity in this vital area.

Hong Kong people resettling abroad?

32.

Hong Kong people frequently leave Hong Kong for professional

reasons or for educational purposes. Many return ultimately to

Hong Kong. HMG remain committed to seeking a settlement on

the future of Hong Kong which will provide continuing

stability and prosperity for all who live and work there.

Confidence in Hong Kong

33. We are deeply conscious of Hong Kong's concerns about the

future. We believe that they can best be met by seeking a

negotiated agreement acceptable to Parliament, the government of China and the people of Hong Kong.

Stock Market and Exchange Rate fluctuations?

34. Of course uncertainty over the future periodically affects

the market. But it is important not to lose sight of other

factors in the international economy.

Hong Kong Economy

35. The Hong Kong economy is in excellent shape. Exports for the first quarter of 1984 were up by 50 percent over the same

period in 1983.

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