TNAG-1987-FCO40-2820-Presentation-of-UK-policy-on-Hong-Kong-to-the-media-1989 — Page 178

HITAGX(2)

CURRENT MOOD IN HONG KONG

Confidence in Hong Kong was severely shaken by the events in China in early June. The stock market dropped by over 30% and property transactions all but ceased. However no institutions collapsed and the market is recovering. Anti-British feeling is rising because of the Government's refusal to contemplate granting right of abode in Britain to all 3 1/4 million British Dependent Territory Citizen

passport holders in Hong Kong. The Government will be doing all

they can to restore confidence. A Bill of Rights wil be introduced

as soon as possible. The programme for democratisation is being

considered afresh. The Government will seek to make an effective input into the Basic Law drafting process, and have made it clear to the Chinese Government that they must take concrete steps to regain the trust of Hong Kong people.

NATIONALITY

Following the events of 3/4 June, anxiety in Hong Kong about the future was manifested in renewed demands on the part of Hong Kong people for the right of abode in the UK. There are currently about 3.28 million residents (out of a

(out of a total poplulation of about 5.7 million) who enjoy the status of British Dependent Territories Citizens (BDTCs). An estimated 1.5 million actually hold BDTC

passports. Although Hong Kong people lost the automatic right of abode in the UK as long ago as 1962, the issue has continued to be a source of much resentment. The events of 3/4 June, and the prospect of Hong Kong's reversion to China in 1997, brought these feelings to the surface. The Prime Minister has already made it clear that it would be impossible for the Government to give right of abode in Britain to all the people of Hong Kong. The potential practical difficulties would be overwhelming. The Government are however

working urgently on a scheme to provide the assurance of the right of abode in the UK to some Hong Kong people on the basis of value of service to Hong Kong as well as connections with Britain. The aim

will be to encourage people whose skills and talents Hong Kong needs to remain in the territory. An announcement will be made as soon as

possible.