TNAG-2168-FCO40-3105-House-of-Commons-Foreign-Affairs-Committee-inquiry-into-Hong-1990 — Page 184

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the UK. Because Hong Kong is one of the world's freest economies,

it is difficult to put a precise figure on British investment in the

territory. But the total gross stock market value of British-owned,

controlled or managed companies has been estimated at some

£20 billion.

Nationality

20. The Government welcome the Committee's analysis under this

heading and agree with their recommendation that assurances should

be offered to a significant number of Hong Kong BDTCs in key

positions (paragraph 4.19). The increasing rate of emigration among key personnel, both in the public and private sectors, is a trend

which the Government take very seriously. In the years 1980-86, the

average yearly outflow was about 20,000. In 1989 it was 42,000.

This year it is expected to be at least 55,000, many of them key

professionals. This growing exodus of talented people poses a real

threat to Hong Kong's stability and prosperity in the period before

1997. Many of those who are emigrating do so reluctantly, beause it

is the only means of acquiring the assurance of a foreign passport.

Most of them would remain if such an assurance were available

without the need to leave Hong Kong.

21.

That is why the Foreign and Commonwealth Secretary announced on

20 December 1989 that the Government proposed to introduce

legislation to give British citizenship to 50,000 key people and

their dependants, without their having to leave the territory in order to qualify. This legislation is designed to anchor people in

Hong Kong so that they can continue to make their contribution to

the territory's success and prosperity. The British Nationality

(Hong Kong) Bill was published on 4 April and had its second reading on 19 April. Details of how the selection scheme might operate were

set out in an Explanatory Note which has also been laid before the

House.

22. The reaction in Hong Kong to the Government's nationality

package has been generally positive. OMELCO has said publicly that

CATAAU ( 9 )

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