38/ €
Mr Brown
(NTD)
CONFIDENTIAL
Mr Stewart
38
pl subunit to Lond G-R
#rough
ul.
HONG KONG:. CALL BY SIR Y K KAN AND DR S Y CHUNG ON LORD GORONWY-ROBERTS: THE GREEN PAPER ON NATIONALITY LAW
1016
1. Sir Y K Kan and Dr S Y Chung called on Lord Goronwy-Roberts on 8 June. As anticipated their main concern was the Green Paper on Nationality Law and it was to this that they (in effect, Sir Y K Kan) spoke during the meeting.
2. A statement had been prepared on behalf of the Unofficial Members of the Executive and Legislative Councils of Hong Kong, the original and a copy of which were left with the Minister of State. I attach a copy for your information. In addition to the arguments set out in the statement, Sir Y K made two further points.
a) He was concerned that the timing, both of the Green Paper itself and of the legislative process envisaged therein, were particularly unfortunate in the Hong Kong case. If, as is assumed, legislation in Britain takes place and effect in the 1980s, these effects will hit a particularly difficult period in Hong Kong's constitutional history. The lease of the New Territories and Kowloon is due to expire in 1997 but a large number of very important investment decisions will need to be made during the 1980s, the amortization of which will run on into the 1990s. He took as his example proposals for a HK6 billion development plan for the China Light and Power Company. An indication by the British Government, such as the proposals in the Green Paper that the link between Great Britai and Hong Kong might be weakened, will tend to destroy confidence, cause an outflow of capital and reduce considerably the viability of such large-scale investments (note: the Department of Industry and the Consortium of British Firms have mounted a large-scale operation to secure the contracts for this for Britain).
(b)
Sir Y K wished to know if it were proposed that the inhabitants of Gibraltar and the Falklands should be treated differently from those of Hong Kong. He accepted that the populations of these two dependencies were very much less than that of Hong Kong but said that the situation of these two territories was almost completely parallel with that of Hong Kong. Our treatment of the populations of Gibraltar and the Falklands, if different from that proposed for Hong Kong, will be seen as a clear indication that the British Government was considering a loosening of the ties with Hong Kong and some relaxation of our responsibilities.
3.
The Minister of State has asked me to draft a letter taking up the points made in the minute and by Sir Y K in his talk.
I was
CONFIDENTIAL