TNAG-1821-FCO40-2584-Emigration-from-Hong-Kong-1988 — Page 115

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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HongkongBank

The Hongkong and Shanghai Banking Corporation

1 Queen's Road Central, Hong Kong

Mr. Hum (oud)

Passed

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34

by Willie Tunes.

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W Purves

Chairman

The Rt Hon Sir Geoffrey Howe QC MP Secretary of State

Realsum

31 May 1988

"THE BRAIN-DRAIN"

I had hoped to comment on this subject at the meeting of the Executive Council this morning but time ran out.

I see the so-called brain-drain as the current biggest problem for bankers and businessmen in Hong Kong.

It is very difficult to replace experienced people. As a concrete example, The Hongkong and Shanghai Banking Corporation lost 8% of its Chinese executive staff in Hong Kong in 1987 and it looks as though we shall lose 10

12% of our Chinese executive staff due to emigration in 1988. We currently have over 600 clerical vacancies in Hong Kong. To put these figures in perspective, we employ 650 local executives and a total of 12,000 employees in Hong Kong.

If the present trends continue for a long period or deteriorate further, Head Offices and Regional Headquarters may have to consider leaving Hong Kong. Potential investors may be discouraged.

I suggest three reasons for the current situation:

(1)

(2)

More than half of Hong Kong's population came from China for one reason or another and have a refugee mentality. They see the future as uncertain. They have recently been watching lurid films of the Cultural Revolution in China, released, strangely enough, by the PRC. Most of them have had no opportunity to see for themselves the change within China in the last few years. They are concerned about the future of their children, in particular. The secondary education system here leaves something to be desired and there are insufficient places in tertiary

institutions.

Commonwealth countries, opportunity of obtaining with money

to

invest.

particularly Canada, see the well behaved, skilled citizens They have therefore eased immigration requirements and in most countries there is no longer a long waiting list. As a result, the exodus from Hong

Instead of a close friend

Kong has

snowballed.

Incorporated in Hong Kong with limited liability

Group Head Office: GPO Box 64, Hong Kong Telephone: 5-8221111 Telex: 73201 HKBG HX Telegrams: Hongbank Hongkong

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