XN000022-1990-12-12 — Page 4

3

GOVT TO ALIGN IMMIGRATION LAW WITH JD AND BASIC LAW

THE GOVERNMENT IS NOW CONSIDERING HOW TO ALIGN THE ORDINANCE WITH THE JOINT DECLARATION AND THE BASIC LAW, SECRETARY FOR SECURITY, THE HON IAN STRACHAN, SAID IN THE COUNCIL TODAY (WEDNESDAY).

IMMIGRATION ACTING LEGISLATIVE

THE

REPLYING ΤΟ A QUESTION BY THE HON MARTIN BARROW, MR STRACHAN SAID THIS WOULD INCLUDE GIVING THE RIGHT OF ABODE TO FOREIGN NATIONALS WHO HAVE ORDINARILY RESIDED IN HONG KONG FOR A CONTINUOUS PERIOD OF SEVEN YEARS OR MORE AND WHO HAVE TAKEN HONG KONG AS THEIR PLACE OF PERMANENT RESIDENCE.

"THERE ARE,

HOWEVER, ALSO OTHER ASPECTS, MANY OF WHICH WILL

REQUIRE DISCUSSION WITH THE CHINESE GOVERNMENT.

"DISCUSSION ON SOME ASPECTS IS ALREADY TAKING PLACE IN THE JOINT LIAISON GROUP," MR STRACHAN SAID.

ON STEPS BEING TAKEN TO GIVE THE RIGHT OF ABODE IN HONG KONG TO FOREIGNERS, MR STRACHAN NOTED THAT IN JUNE THIS YEAR, THE GOVERNMENT HAD REDUCED THE RESIDENTIAL REQUIREMENT FOR UNCONDITIONAL STAY FOR FOREIGN NATIONALS FROM NINE TO SEVEN YEARS.

"THUS, THEY MAY APPLY FOR UNCONDITIONAL STAY AFTER HAVING LIVED HERE FOR SEVEN YEARS, AS OPPOSED TO THE PREVIOUS REQUIREMENT OF NINE YEARS.

"THIS IS THE FIRST STEP WE HAVE TAKEN TO EXTEND THE RIGHT OF ABODE TO FOREIGN NATIONALS IN HONG KONG," MR STRACHAN ADDED.

TAX TREATIES HELP IN ATTRACTING INVESTMENT

* * * * *

THE MAIN POTENTIAL ADVANTAGE OF TAX TREATIES IDENTIFIED LIES IN ATTRACTING INVESTMENT TO HONG KONG AND IN EASING ANY TAX PROBLEMS OF LOCAL COMPANIES WITH DIVIDENDS AND ROYALTIES FROM OVERSEAS.

THIS WAS STATED BY THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

REPLYING TO A QUESTION BY THE HON PAUL CHENG, SIR PIERS SAID THE GOVERNMENT HAD BEEN GIVING SOME PRELIMINARY CONSIDERATION AS ΤΟ WHETHER HONG KONG COULD BENEFIT FROM TAX TREATIES WITH OUR MAJOR TRADING PARTNERS.

"WE NEED TO EXAMINE WHAT WE MIGHT WISH TO SEEK то INCLUDE IN SUCH TREATIES, AND WHETHER SUCH PROVISIONS WOULD FIND FAVOUR WITH THE OVERSEAS TAX TERRITORIES WITH WHOM WE MIGHT WISH TO NEGOTIATE.

"MOST IMPORTANT OF ALL, WE MUST BE SATISFIED THAT THERE IS SOME TANGIBLE ADVANTAGE FOR HONG KONG," SIR PIERS SAID.

/4