TNAG-1748-FCO40-2467-Visit-by-Sir-Geoffrey-Howe--Secretary-of-State-for-Foreign-a-1988 — Page 104

PTZABR (3)

CONFIDENTIAL

Background

1.

Emigration is becoming an increasingly important issue in Hong

Kong, and a cause of major concern in banks and other enterprises in

the territory. The Governor acknowledged at a press conference last

month that emigration is a problem. There is no clear cut evidence

available, but the following picture has emerged:

(a) the Hong Kong Government do not keep data on emigration, but

from available information the net outflow from Hong Kong was

about 20,000 a year between 1980 and 1984. In the last three years the figures have been roughly:

1985

11,000

1986

13,500

1987

27,000

Indications are that the 1988 figure will continue at least at

the 1987 level.

(b) there is some evidence that an increasing number of those

leaving are from the professional/middle management area.

(c) there are no reliable data on those who subsequently return to

Hong Kong. Some people assert that only 10-20% return.

2. The Hong Kong Government have set up a Task Force to examine the problem. The Governor has ruled out taking direct measures to stop people leaving: the Hong Kong Government will continue to work to make Hong Kong an attractive place to stay in or to return to,

and will make every effort to train additional people to fill any gaps. Other measures which have yet to be considered could include establishing centres in major emigration destinations to facilitate

return to Hong Kong, and addressing concerns that people returning

may have about the education arrangements for their children in

Hong Kong.

3.

It is clear that the increase in numbers leaving Hong Kong has

much to do with the more liberal immigration regimes introduced by

such countries as Canada, Australia and the United States. These

CONFIDENTIAL