CONFIDENTIAL

VISIT TO HONG KONG BY THE MINISTER FOR TRADE: 30 AUGUST-5 SEPTEMBER

NO 2.

POLITICAL BRIEF

LINE TO TAKE

UK/HONG KONG RELATIONS

1.

HMG firmly committed to Hong Kong. Keen to see confidence

maintained. Many admirers in UK of Hong Kong's phenonemal economic

success combined with progressive social policies.

UK/HONG KONG/CHINA RELATIONS

2.

UK/China relations excellent.

Recognise importance of good

China/Hong Kong/UK relations to stability of Hong Kong.

FUTURE OF HONG KONG

3.

Recent Chinese statements reassuring but obviously need

Development of commercial and industrial cooperation

underpinning.

clearly helpful towards securing Hong Kong's long-term future.

[If pressed] The question of the long-term future of Hong Kong and

the related one of the leases in theNew Territories is being looked ".

at. But can say no more than that.

NEW BRITISH NATIONALITY LAW (if raised)

4.

White Paper provides for separate category of citizenship

for Dependent Territories. Now that it is published Hong Kong has

further opportunity to comment.

OVERSEAS STUDENTS' FEES AT UK INSTITUTIONS (if raised)

5. We shall be monitoring the effects of the higher fees on

student admissions, including those from Hong Kong.

ILLEGAL IMMIGRATION FROM CHINA(if raised)

6.

Concern about continuing high levels.

Doing all we can to

stem flow and urging Chinese to do same.

CONFIDENTIAL

/Vietnamese Refugees

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