E.R.

9.

10.

11.

The UK Government is seriously concerned about this loss of

confidence. Most people who leave Hong Kong do so reluctantly

in order to acquire another citizenship or residence rights

elsewhere as an assurance against a future they feel is

uncertain. To stem this flow and boost confidence in the

territory the UK Government is making special arrangements to

grant British Citizenship (and thus right of abode in the UK)

to selected people in Hong Kong who play key roles in the

Territory's continuing administration and prosperity. This

will give an assurance for the future without the recipients

needing to leave Hong Kong, the UK Government believes that

this will encourage key people to stay in the territory, to

the benefit of Hong Kong as a whole.

The British Nationality (Hong Kong) Act 1990, which became law

on 26 July, sets the framework for the new arrangements and

enables the Home Secretary to register as British citizens up

to 50,000 Hong Kong residents, plus their spouses and their

minor children, who are recommended for registration by the

Governor of Hong Kong. The principal beneficiaries will also,

provided they remain in Hong Kong, be able to pass British

citizenship to a future spouse married before these special

arrangements come to an end in 1997, and, under the normal

operation of British Nationality law, will be able to pass citizenship to future children. There will be no special

arrangements to benefit grandchildren or other members of the

family. The Government's estimate is that the total number

of people who will acquire British Citizenship under these

arrangements will not exceed 225,000.

The details of the scheme for selecting the 50,000 Hong Kong

residents will be set out in subordinate legislation which

will go before Parliament in Autumn 1990. Over 70% of the

available places will be available for general allocation to

applicants from a wide range of occupations in Hong Kong. Applications will be divided into broad occupational groups

business and management, accountancy, engineering,

information sciences, medicine and science, law and education

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