loaa

Meehug behueen Sir. E. HoUDE & Cow. Hawa kawa

Original at: NKK 341lı

This Copy for:

61080

HKCK 340/1 RECEIVED IN REGISTRY NO. 51 15 OCT 1980

SECRET

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2 -

rmation only/Action on

aa's)

flying the Shanghai route, there were three possibilities REGISTRY

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مید

(i)

1

(ii)

(iii)

PA

Action Taken

후요미 AW16/d

i

The reconstitution of a Hong Kong Airline that it was genuinely different from GRAT This would mean introducing new shareholders. (HE would talk to Mr. Bremridge about it.) Allow CAAC to fly from Shanghai to Hong Kong without reciprocal rights. This would at least ensure that travel to Shanghai was funnelled through Hong Kong and not diverted to Canton. Agree that CAAC should fly through Hong Kong on a Pacific route. Sir E. Youde thought it would be difficult to persuade D of T to accept this.

The Guangdong Nuclear Project

It was agreed to await the completion of the feasibility study early next month before taking any further action. At this stage, it would be necessary for HMG to clarify their attitude to the project and whether they (and the HKG) would be prepared to take an equity holding.

It was agreed that meanwhile Dr. Marshall could · legitimately remain as adviser both to CCP and to the HKG. There was at this stage no necessary conflict of interest between the two positions.

Nationality Act

HE said that a number of points of detail affecting Hong Kong would be listed in a letter to the FCO. In addition, there was the major problem of the anxiety caused to those on whom the Government depended in the public services, or who are associated with the Government, through the psychological impact of the Nationality Act. Some 80% of the Administrative Branch had just sent a petition to the CS. For the moment all that could be done was to note this "1997 dimension" as a potentially serious problem which HMG would increasingly have to keep in mind. HE would talk to the Secretary of State about it in London in November.

Vietnamese Refugees

HE explained that it was essential to get a further UK quota in order to ensure that the Americans in particular A new continued with their large resettlement programme.

It quota of 5,000 was the minimum likely to achieve this. would not be necessary to specify a time limit and the quota could, although this would be better left unstated in public, also cover rescues at sea.

Sir E. Youde said this was a difficult issue because of opposition from large sections of the UK population to immigration of all forms. He thought it best to approach the problem quietly without publicity in the UK.

SECRET

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