HRD 34014

RECEIVED

BRITISH NATIONALITY (HONG KONG) BILL: SECOND READINGRY

JUN 1990

MODULES FOR SECRETARY OF STATE'S WIND

UP SPEECH

DESK OFFICER

INDEX

REGISTRY

PA

Action Taken

هم

866

J23/4

Scheme is necessary for stability and prosperity of the territory

The remarkable success of Hong Kong means that a great deal is at

stake as we approach 1997. Hong Kong rates eleventh among the

world's trading economies, has the world's busiest international

container port and is also a major international financial centre.

It is also the hub of business operations throughout the Far East.

Hong Kong's prosperity has been built on the energy and

determination of British and Chinese people working together.

It is Britain's responsibility to ensure that Hong Kong remains stable and prosperous throughout the final years of British administration and to secure the best possible deal for Hong Kong

people thereafter, based on what we have already achieved in the

Sino-British Joint Declaration. The final chapter in our long

administration of Hong Kong is going to be one of the most difficult

to see through successfully. Our task has become much more

difficult because of the understandable concern in Hong Kong caused

by the events in Tiananmen Square last summer.

Many of the

In the years 1980-86,

Last year it was

People there are anxious about their future.

territory's brightest and best are leaving. the average yearly outflow was about 20,000.

42,000. This year it is expected to be at least 55,000, many of

them key professionals.

We have a duty to provide additional reassurance and to persuade

those people to remain in the territory. This is not only an

obligation under the Joint Declaration. It is also a matter of

reputation and honour that neither the Government nor the House can

ignore.

ASHADB

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