CONFIDENTIAL

SECRETARY OF STATE'S VISIT TO HONG KONG: 27-29 SEPTEMBER 1980

TOPICS FOR DISCUSSION

1.

UK Higher Education Fees: general concern in Hong Kong at

the increase in higher education fees for Hong Kong students in

the UK.

2.

New British Nationality Law: subject raises strong emotions

in Hong Kong although agreement over a separate category of

citizenship for Dependent Territories will have calmed some

fears. Publication of White Paper has given Hong Kong opportunity

to comment.

3. Multi Fibre Arrangement: control of Hong Kong's export of

textiles has generated strong reaction in the past. Preliminary

discussions on renegotiation of the Arrangement expected this

autumn.

4. Future of Hong Kong: discussion with the Governor of the

long-term future of Hong Kong and Chinese attitudes towards the

territory, including the practical problems arising soon from

expiry of New Territories Lease in 1997.

5.

Illegal Immigration from China: numbers are still very

high. Hong Kong Government's proposals to repatriate all illegal

immigrants (Operation Champion). Briefing by Governor on

current situation for Secretary of State's discussion in Peking.

6.

Defence Costs Agreement: the present agreement whereby

Hong Kong contribute 75% of the cost of the Garrison currently

under review. Mr Hayhoe will be in Hong Kong in October to

conclude the negotiations.

Hong Kong likely to be asked to

triple its contribution. The Services are at present primarily

deployed on anti-illegal immigration duties.

CONFIDENTIAL

17.

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