TNAG-2188-FCO40-3125-Hong-Kong-nationality-package-1990 — Page 84

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HONOUR

HONG KONG

11th December 1989

Charles D. Powell, Esq.,

10 Downing Street,

London,

SW1A 2AA.

5-11 Theobalds Road London WCLX8SH Telephone 01-405 8755 Telex: 264100 HIENOL G Telecopier 01-495 0295

Dear Mr. Powell,

Charks

Honour Hong Kong is a broadly based group of businesses and professional organisations formed to help rebuild confidence in Hong Kong and to ensure its continued prosperity and stability.

Honour Hong Kong has commissioned a study of the potential effects of emigration on the Hong Kong economy in the run-up to 1997 and I now enclose a copy of this study.

Every Hong Kong British citizen is morally entitled to a full British passport and Britain has a responsibility to ensure a safe and secure future for the entire population. Britain, however, has made it clear that it will not grant full citizenship to all. Instead, it has said it will make provision for a more limited number of people. We therefore commissioned Price Waterhouse to study the impact of emigration upon Hong Kong's economy and their report is the first comprehensive and independent assessment of its effect on Hong Kong. It will help Britain to design a package of maximum benefit to Hong Kong.

In 1984, Britain signed the on the future of Hong Kong. maintain the prosperity and stability of Hong Kong up to 1997, when sovereignty would revert to China. At the same time, China promised that Hong Kong would retain its capitalist system and way of life for at least fifty years.

Sino-British Joint Declaration

This committed Britain to

The Price Waterhouse Report shows that if nothing is done to stabilise the key element of the workforce, there could be a rapid deterioration in Hong Kong's growth rate. the worst case, the gross domestic product of Hong Kong could be as much as 45 percent less in 1997, than would be the case if the historical growth rate was maintained. Britain has a legal obligation to make sure this does not happen.

The report focuses on the effect of emigration on the pool of professional, technical, managerial and administrative staff ('PTMAS').

This group consists of people from both the private sector and the public sector, including the disciplined services. It includes degree holders and skilled workers, senior managers and more junior supervisors.