CONFIDENCE IN HONG KONG

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14. 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. We remain committed to seek such a settlement and we believe that our good relations with China will

help us to achieve one.

INTEREST IN RESETTLEMENT

15. There has been much speculation on this matter. Although the

number of Hong Kong people leaving in 1983 for permanent residence

in the main countries of resettlement has shown some increase over

1982, there are many explanations for this. In some cases immigration criteria have been relaxed. Moreover, Hong Kong people

frequently leave Hong Kong to go elsewhere 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.

HONG KONG ECONOMY

16. Hong Kong's economy is in excellent shape and an export-led

recovery is clearly underway. In 1983 Hong Kong's exports increased by 26% and imports by 23% over 1982 levels. A growth rate of 51-68 is expected in the current financial year..

Hong Kong Department

22 February 1984

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