Mrs Meriel Packman

Court Lodge

Groombridge

Kent TN3 9PS

Thank you for your letter of 16 December about Hong Kong and in particular our package of assurances. I enclose a copy of the

statement which the Foreign Secretary made in the House of Commons

on 20 December setting out the reasons why we have decided to give

British Citizenship to a limited number of people from Hong Kong.

Our last major responsibility of empire is to secure the best

possible future for Hong Kong. We have a clear duty to maintain

good government and prosperity in Hong Kong up to 1997 and, we hope,

beyond. This is a matter of honour for Britain.

It is also in our interest to keep Hong Kong prosperous. Many jobs in this country depend upon it. Britain's total trade with the

territory amounts to over £4 billion a year. Our investments there

exceed £2 billion and may indeed be considerably more than that if

equity investment, banking interests and so on are included. About 1,000 British companies operate in Hong Kong.

Last June's tragic events in Tiananmen Square caused shock waves

in Hong Kong. Both the territory's prosperity and its good

government are being put at risk by the emigration from the

territory of its most talented and highly qualified people. the private and public sectors are affected. Experienced managers, engineers, doctors, nurses and teachers from Hong Kong find that

their skills are in demand in countries like Canada and Australia.

CVRAA E

Both

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