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the period before 1997.

reluctantly, because it is the only means of acquiring the assurance of a foreign passport. Most of them would remain if such an assurance were available without the need to leave Hong Kong.

Many of those who are emigrating do so

3. This is why the British Nationality (Hong Kong) Act 1990 (which received the Royal Assent on 26 July) gives British citizenship to 50,000 key people and their dependants without their having to leave the territory in order to qualify. This Legislation is designed to anchor people in Hong Kong so that they can continue to make their contribution to the territory's success and prosperity.

4. We have also encouraged other countries to find ways of giving Hong Kong people assurances without their having to Leave the territory. Singapore has already introduced a scheme to give permanent residence status to up to 25,000 blue collar workers and their families without requiring them to leave Hong Kong for a number of years. Within the EC, France, the FRG, Belgium and Luxembourg are implementing schemes to provide the right of entry to employees of French, German, Belgian and Luxembourg companies and their families. The US Congress is also considering a proposal which would increase the immigration quota from Hong Kong but enable beneficiaries to defer settlement in the United States for a number of years.

5. If Hong Kong people wish to emigrate to Hungary, we clearly could not stand in their way. But, at first sight, Dr Berta's proposal would appear to be similar to others we have heard of aimed at quote cherry picking unquote Hong Kong entrepreneurs and their investors. We would not wish to give any official encouragement to such a proposal unless beneficiaries were

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