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that their interests have

been taken

reasmably

acconal

into

For example we have resisted pressure from industry for letter

protection against substantial imports of Hong Kong cutlery

and knitweat; we have also opporad thors of our EEC partners who would

like to sex comprehens restrictions on Nos Kay Laxatlas.

we are trying to control them, or are ignoring their

interests. Many believe that we take advantage of

Hong Kong's success to give priority to British over

Hong Kong's interests. They also resent it if their

views are over-ridden by parliamentary considerations

in the UK.

3.

When the Prime Minister visits Hong Kong from

12-14 January he will be questioned about relations

with China, particularly the Chinese Government's

request for an official representative in Hong Kong.

This is being dealt with separately. Questions on

relations with Britain will focus on a number of

problems that have been under discussion for some time.

Separately none of these issues is vital. Together

they are important. On them Hong Kong base their

judgement of the UK's intentions towards the Colony,

this affects their confidence in their future. То

promote confidence we need to be able to satisfy

opinion in Hong Kong on these specific issues.

4.

and

We do not need to be defensive. Apart from

defence, which is a sensitive (though not a current)

issue in Hong Kong as a result of periodic arguments

over their defence contribution, we should claim credit

for all we have done to help Hong Kong. Where current

problems can be solved we should say so now. Even when

we cannot do everything we can usually do something.

Our aim should be to convince Hong Kong that our

interests run together;

them; and that where we do not, there are reasons for

this which they should respect.

5.

that we do what we can to help

The most important current issues are described

/separately

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separately in the Annex to this paper. A number of

departments have an interest in these questions, and

a Cabinet Committee of officials has been examining

them to try to resolve as many as possible before the

Prime Minister's visit. I invite my colleagues:

(a) to take note of the progress that has been

achieved;

(b) to consider

(i) how far the Prime Minister should

(ii)

(iii)

(iv)

emphasise our undertaking to press for

changes in the Community's GSP (para. 5

of the Annex)

whether, if the Governor's decision on

the death penalty in the case of Lam Po

is that the law should take its course,

we can support him (para. 10 of the

Annex)

whether we should instruct officials to

examine further the possibility of

changes in the Fugitive Offenders Act to

abolish the Double Criminality Rule in

relation to Hong Kong (para. 18 of the

Annex)

whether we should make further special

efforts before the end of the year to

reach agreement on an SAS service to

Hong Kong (para. 20 of the Annex)

(v)

whether any further special efforts

should be made to reach agreement on a

Register of Shipping for Hong Kong "(para. 21 of Annex);

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/(c) ..

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(c) to instruct their officials to brief the

Prime Minister accordingly for his visit

to Hong Kong.

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