XN000022-1984-10-16 — Page 2

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TUESDAY, OCTOBER 16, 1984

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RESERVATIONS EXPRESSED BY CHAN KAM-CHUEN

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THE HON CHAN KAM-CHUEN SAID TODAY THAT HE COULD NOT +COMMEND THE DRAFT AGREEMENT AND FORESEE ITS FULL IMPLEMENTATION WITHOUT RESERVATIONS.+

ABSTAINING FROM VOTING TODAY (TUESDAY) ON THE MOTION ENDORSING THE JOINT DECLARATION AND COMMENDING IT TO THE PEOPLE OF HONG KONG, HE SAID THAT DURING THE TWO YEARS OF THE NEGOTIATIONS, THE COMMUNITY HONG KONG WERE BROADLY DIVIDED INTO FOUR CATEGORIES: THE HAVES, THE + HAVE-NOTS+, THE +BELIEVERS+ AND THE BELIEVE-NOTS+.

THE HAVES+ WERE THOSE WITH LARGE INTERNATIONAL OR CHINESE BUSINESS LINKS, WITH SEVEN-FIGURE BANK ACCOUNTS, WITH EXPERTISE, WITH FOREIGN PASSPORTS, WITH EXPERIENCE OF LIVING ABROAD, AND THOSE WHO HAD SUITABLE RELATIVES IN FOREIGN COUNTRIES INCLUDING THOSE WHO HAD BABIES BORN BY DESIGN IN FOREIGN COUNTRIES.

+RECENTLY, I SPOTTED SOME FIGURES ON APPLICATIONS FOR +CERTIFICATE OF NO CRIMINAL CONVICTION+ IN A LOCAL NEWSPAPER, AND AFTER CONFIRMING THAT THESE FIGURES WERE CORRECT I MADE SOME DEDUCTIONS AND ARRIVED AT BROAD BRUSH FIGURES ON THE INCREASE IN THE NUMBER OF EMIGRANTS IN THE PAST FIVE YEARS,+ MR CHAN SAID.

THE FIGURES WERE 12 408 IN 1979 AND 20 477 IN 1983.

A SMALL NUMBER OF APPLICATIONS WERE REJECTED FOR SUCH MINOR OFFENCES AS A $15 FINE FOR BEING FOUND IN A GAMBLING HOUSE BUT WERE NOT DEDUCTED FROM THE ABOVE FIGURES AS THE APPLICANTS COULD STILL EMIGRATE.

EMIGRANTS AND STUDENTS WHO REQUIRED NO SUCH CERTIFICATE, SUCH AS THOSE GOING TO THE UK, TAIWAN, ETC, WERE NOT INCLUDED.

MR CHAN SAID MANY OPINIONS HAD BEEN EXPRESSED ABOUT BRAIN- DRAIN AND FINANCIAL-DRAIN, BUT THERE WAS ANOTHER DRAIN WHICH MAY CAUSE THE COMPETITIVE EDGE OF OUR INDUSTRIES TO BE WORN OFF, AND THAT WAS THE DRAINING OF ENTREPRENEURS IN SMALL MANUFACTURING ESTABLISHMENTS EMPLOYING UNDER 50 WORKERS.

MANY OF THEM WERE PROVIDING SUPPORTIVE GOODS AND SERVICES TO THE LARGER MANUFACTURERS AND OTHER SECTORS, SUCH AS BUTTONS TO THE CLOTHING INDUSTRY AND SCREWS FOR ALMOST ALL INDUSTRIES.

+OF COURSE, ONE CAN GET SUPPLIES FROM ABROAD, BUT CERTAINLY NOT WITH SUCH COMPETITIVE PRICES AND QUICK DELIVERY.

+ IF THESE SMALL MANUFACTURERS MOVE OUT IN LARGE NUMBERS, OUR INDUSTRY WILL CRUMBLE FROM INSIDE, MR CHAN SAID.

/THIS WAS