XN000022-1988-04-20 — Page 29

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WEDNESDAY, APRIL 20, 1988

"IT IS NOT DIFFICULT TO SEE WHY THERE IS A DRAIN FROM HONG KONG, ONE WHICH IS MANAGEMENT GROUP AND THEREFORE ONE

CONSIDERABLE BRAIN LARGELY CONCENTRATED IN THE MIDDLE WHICH WE CAN ILL AFFORD, HE SAID,

"NO MATTER HOW WELL CHINA IS PROGRESSING ECONOMICALLY AND DESPITE CHINA'S OBVIOUS AND SINCERE EFFORTS TO ALLAY FEARS IN HONG KONG AS TO THE FUTURE UNDER THE PRC, IT IS INEVITABLE THAT SOME OF THOSE PEOPLE WHO HAVE A CHOICE WILL EXERCISE IT IN FAVOUR DEPARTURE.

"QUITE APART FROM THE QUESTION OF ECONOMIC VIABILITY OF KONG, THERE IS THE VERY REAL AND PERSONAL QUESTION OF THE FAMILY,

OF

HONG

MR CLYDESDALE SAID ALTHOUGH MANY PARENTS MIGHT BE PREPARED TO ACCEPT CHINA'S ASSURANCES AND STAY FULLY COMMITTED TO HONG KONG, THEY WERE NOT WILLING TO COMMIT THEIR CHILDREN.

"THAT IS A NATURAL AND COMPLETELY PREDICTABLE POSITION TO TAKE. SO WE WILL CONTINUE TO LOSE PEOPLE FROM OUR MIDDLE CLASS AND THIS IN TURN WILL PLACE SOME STRAINS ON MIDDLE MANAGEMENT THROUGHOUT OUR BUSINESS SECTOR AND ALSO ACADEMIA AND GOVERNMENT, HE SAID.

**

"THESE EFFECTS ARE ALREADY APPARENT AND THEY MAY GROW PROGRESSIVELY MORE DIFFICULT.

+4

IN ALL THE CIRCUMSTANCES,

HE SAID, HONG KONG COULD NOT PERSUADE THOSE WHO WISHED TO LEAVE TO STAY AND TAKE THEIR CHANCE, AS IT WERK. THEY WOULD MAKE PERSONAL AND FAMILY DECISIONS BASED ON THEIR OWN PERCEPTION OF THE FUTURE.

CAN

"WHAT WE CAN DO AND WHAT CHINA

STRONGLY SUPPORT US IN DOING, IS TO SPELL OUT AS OFTEN AS MAY BE NECESSARY THE MANY GOOD REASONS FOR BELIEVING THAT HONG KONG HAS A SECURE, SAFE, AND HAPPY FUTURE AS AN SAR WITH A UNIQUE AND LASTING RELATIONSHIP WITH, AND WITHIN, CHINA," HE SAID.

"FEARS OF CHANGES IN PRC LEADERSHIP AND POLICIES CAN BE LAID TO REST ONLY OVER A PERIOD OF TIME AND WITH AN ESTABLISHED TRACK RECORD WHICH SUPPORTS THEIR GENERAL CONTENTION THAT OUR LOCAL POPULATION HAVE NOTHING TO FEAR.

14

MR CLYDESDALE SAID CHINA HAD A HEAVY RESPONSIBILITY TOWARDS HONG KONG AND IN GETTING THIS CONSTRUCTIVE AND REASSURING MESSAGES

ACROSS.

"QUITE APART FROM ENSURING THAT FUNDAMENTAL CONSTITUTIONAL AND OPERATIONAL POLICIES AFFECTING HONG KONG ARE ENLIGHTENED AND APPLIED WITH SENSITIVITY, CHINA MUST ALSO REMEMBER THAT GOOD PUBLIC RELATIONS ARE NECESSARY TO EXPLAIN THESE POLICIES IN LAYMAN'S TERMS, HE SAID.

MOVING

INTO AN

MR CLYDESDALE SAID HONG KONG WAS NOW INCREASINGLY SENSITIVE PERIOD IN ITS CONSTITUTIONAL DEVELOPMENT.

"WE CANNOT