XN000022-1984-10-16 — Page 22

TUESDAY, OCTOBER 16, 1984

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CLARIFICATION NEEDED ON NON-CHINESE BDTC'S CARL TONG

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THE BRITISH GOVERNMENT, TOGETHER WITH THE GOVERNMENT OF CHINA, MUST RESOLVE TO CLARIFY THE STATUS OF ABOUT 10 000 NON-CHINESE BRITISH DEPENDENT TERRITORY CITIZENS (BDTC'S) IN HONG KONG.

THE HON CARL TONG SAID THIS IN THE LEGISLATIVE COUNCIL TODAY WHEN SPEAKING IN SUPPORT OF THE MOTION ENDORSING THE DRAFT AGREEMENT ON HONG KONG.

HE SAID THAT THIS SHOULD BE DONE AS SOON AS POSSIBLE THROUGH A PUBLIC ANNOUNCEMENT.

HE SAID THAT IT WOULD NOT BE RIGHT FOR THESE PEOPLE, MOSTLY CITIZENS OF INDIAN, PAKISTANI AND PORTUGESE ORIGIN, TO BECOME STATELESS AFTER 1997.

MR TONG ALSO EXPRESSED CONCERN ABOUT THE BASIC LAW.

HE SAID HE BELIEVED THAT, WHILE IN PRACTICE THE DRAFT AGREEMENT COULD NOT BE CHANGED, THE CHINESE GOVERNMENT SHOULD, IN CONSULTATION WITH THE BRITISH GOVERNMENT AND IN CONSIDERATION OF THE VIEWS EXPRESSED BY THE PEOPLE OF HONG KONG, INCLUDE THE NECESSARY REFINEMENT TO THE DRAFT AGREEMENT IN THE BASIC LAW,

MR TONG LIKENED HONG KONG TO A COMPANY AND DISCUSSED WHETHER INVESTORS' CONFIDENCE WOULD BE AFFECTED BY THE CHANGE OF OWNERSHIP.

HE SAID INVESTORS' CONFIDENCE DEPENDED ON FIVE KEY FACTORS THE GENERAL ECONOMIC ENVIRONMENT, THE MARKET FOR ITS PRODUCTS, THE MANAGEMENT, THE LABOUR FORCE AND THE ADEQUACY OF THE SYSTEM OF PROCEDURES AND ORGANISATION.

HE BELIEVED THAT THE GENERAL ECONOMIC ENVIRONMENT WOULD ALWAYS BE SUBJECT TO EXTERNAL FORCES AND, +EVERYTHING REMAINING EQUAL, 'HONG KONG INCORPORATED'S' MARKET POSITION SHOULD NOT BE AFFECTED BY THE CHANGE IN OWNERSHIP.

+THE WHITE PAPER HAS EXPLAINED THAT THE OBJECTIVE OF ITS PROVISIONS IS TO PRESERVE THE SYSTEM BEFORE THE CHANGE OF OWNERSHIP AND TO GIVE 'HONG KONG INCORPORATED' A HIGH DEGREE OF AUTONOMY IN WHICH IT WILL BE ABLE TO ADMINISTER ITSELF AND CONTINUE TO DECIDE ON MOST OF ITS OWN POLICIES.

+THIS APPEARS TO TAKE ACCOUNT OF PRESERVING 'HONG KONG INCORPORATED'S' EXISTING SYSTEM IN GENERAL, HE ADDED.

ON MANAGEMENT. HE SAID IT WOULD BE UNREALISTIC TO EXPECT NO CHANGE IN SENIOR MANAGEMENT IN ANY TAKEOVER BID.

/HOWEVER, HE