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no specific provicim, but it is open to those who qualify

to capply.

to transfer their GDR citizenship to a full German citizenship after the unification.

In this contaxt it must be mentioned that some EC firms in Hong Kong have been helpful in securing member state passports for their employees.

In many of these cames the assumption of another nationality is not the sign of a desire to reside permanently outside Hong Kong, it is simply an escape hatch for future. Nonetheless, such emigration does mean a real loss of skilled personnel and a dispiriting atmosphere.

The passing of the British Nationality (Hong Kong) Act in 1990, whatever its shortcomings, once more provided established rules which the pragmatic Hong Kong citizens could use as a platform for orientation.

The situation of the non-Chinese residents of Hong Kong, particularly other ethnic Asians gives rise to some concern. The PRC has said that non-Chinese will not have citizenship after 1997 and the UK's British Nationality (Hong Kong) Act

makes no provision for people of the Indian sub-continent, many of whom have been in Hong Kong for generations, and who have and still do, significantly to the economic success of Hong Kong.

contribute

By and large the talented, the rich and mobile are secure, the fate of the millions who have no option or wish but to remain in Hong Kong after 1997 still gives rise to concern. As a trade union organiser told your rapporteur "it is not residence rights in the UK we want, but human rights in Hong Kong"

The fate of the Vietnamese "boat People" has caused some anxiety and friction. Hong Kong has in fact been more generous in its reception of such refugees than some South Eastern Asian states. Nonetheless, the harsh repatriation measures have drawn criticism from many, including this Parliament. It is hoped that the matter can be speedily resolved with as little distress as possible based on the governmental agreement between the UK and Vietnam.

ECONOMIC AND TRADE ISSUES

More than almost anywhere else the economic welfare of Hong Kong has depended on its trade. This has been determined by its very limited size. The correlation between manufacturing and exporting has been particularly, even uniquely close in Hong Kong. Hong Kong's economic welfare remains determined by external events.

Hong Kong occupies a commanding position geographically and economically in the Asia-Pacific region which guarantees success provided that there is continued political security.

It is anticipated that the high economic growth in the Asia-Pacific region will continue and that rising prosperity will generate more inter-regional economic relations. Hong Kong is well placed to exploit this growth, particularly in the service sector. Many non-Asian multinationals use Hong Kong as a regional base. This is already reflected in the move from manufacturing to service sector employment.

The second important reason for optimism is that whatever the political vicissitudes in the PRC, it seems that China's open door policy will continue.

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PE 156.153 /rév.

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