CONFIDENTIAL
SECRETARY OF STATE'S MEETING WITH THE CONSERVATIVE BACKBENCH FOREIGN
AFFAIRS COMMITTEE ON HONG KONG: 10 JANUARY 1990
Points to Make
A.
CONSISTENCY OF OUR SCHEME WITH JOINT DECLARATION
Package is designed to fulfil our obligations under Article 4 of
the Joint Declaration to "maintain and preserve Hong Kong's economic
prosperity and social stability".
Essential point is that aim of our scheme is to give key people
the confidence to remain in Hong Kong, where they can continue to
contribute to its economy and administration.
UK Memorandum (associated with Joint Declaration) does not
preclude the grant of citizenship to British nationals in Hong Kong
before 1 July 1997.
Memorandum merely states that after 30 June 1997 BDTCs will be
eligible to acquire an appropriate status (ie BN (O)) which "without
conferring the right of abode in the UK" will enable them to
continue using a British passport. Memorandum is silent on those BDTCs who may become British citizens before 1997.
B.
THE IMPACT OF THE SCHEME ON THE BRAIN DRAIN
According to Price Waterhouse Report on the Impact of Emigration
on the Economy of Hong Kong (December 1989), if current levels
persist, close to 78,000 professional, technical, managerial and administrative staff will leave over next 7 years. This is 25% of
the present key personnel labour pool.
We have been lobbied by many British companies operating in HK.
- In this context, measures to persuade 50,000 key personnel to remain in Hong Kong will make a significant contribution.
CONFIDENTIAL