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42,000 people have

of people who contemplate leaving.

left Hong Kong this year. 55,000 are expected to leave

next year. A growing proportion of these people are

those whom Hong Kong can least afford to lose. This

haemorrhage of talent puts at risk the competitiveness

of Hong Kong's economy, the efficiency of its public

service, the effectiveness of its education system, in

short its future.

Many of those who are leaving Hong Kong would not do so

if they could obtain the assurance of right of abode in

the UK. As hon members will be aware from statements

by the Prime Minister and other rt hon Friends, we have

been working on a scheme to give such assurances to a

limited number of key people and their dependents in

the public and private sectors. The Foreign Affairs

Committee recommended such a scheme in their report in

June, and my rt hon and learned Friend the Lord

President told the House on 5 July that we would

provide one. I can now explain to the House the

conclusions we have reached.

We aim to give such people the confidence to remain in

Hong Kong so that they can continue to make their

contribution to the success and prosperity of the

territory. We have to weigh in the balance our ability

to accept the individuals concerned for settlement in

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