[Statelessness?]

Any Hong Kong British Dependent Territories Citizen who does not opt for British National (Overseas) status

before 1 July 1997 will automatically become British

Overseas Citizens if they would otherwise be stateless.

Their children and grandchildren will also be able to

acquire British Overseas Citizen status if they would

otherwise be stateless.

CONFIDENCE IN HONG KONG

State of confidence remains very encouraging.

Recent international poll rated Hong Kong people as most optimistic in the world.

ECONOMY

Economy very strong. Hang Seng index breaking new records. Property market flourishing. Economic growth

in 1986 confortably exceeded initial estimate of 5-6%.

Exports increased by estimated 19%.

ANNUAL REPORT ON HONG KONG

To be laid before Parliament on 19 February and

published on 20 February.

EXECUTION OF HONG KONG RESIDENT IN CHINA

I am aware of reports this morning that a Hong Kong

resident, as well as a Thai citizen, has been executed

in China, following conviction on charges involving the

importation of heroin worth about £1.4million. I have

no further details at present. As the House will be

aware, the PRC Government regard Hong Kong Chinese

people as Chinese citizens. and we are unable to offer

them consular assistance when travelling in China.

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