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indifference to the Hong Kong connection with unfair preference for UK, interests caused a temporary
storm. This was stilled by Mr. Nott's clever decision to overrule the CAA and licence 4 applicants (including Cathay Pacific) instead of 2. But the other two issues rema in: -
(a)
(b)
University fees: Retention of this academic link is important. The ideal would be to accept that Dependent Territories students should have home student status for fee purposes. But if this is not possible the Hong Kong Government stands ready to play a full financial part to ensure that the present drift away from UK, schools and universities is reversed;
The New Nationality Act: I am grateful for HMG's agreement to create a category of citizenship for Dependent Territories distinct from Overseas citizenship, but the effect of the Bill here will still be had. It will be interpreted as a slamming of the door to possible asylum, and an evasion of historial responsibility, and will raise in Hong Kong minds many questions about the future to which there is still no satisfactory answer. I am in touch with the department about what might be said to reassure the public and the public service.
17. United Kingdom exports to Hong Kong continued to improve and it looks as if they will have topped 550m. in 1980. The efforts of Sir Keith Joseph, Mr Nott and Mr Parkinson to bring home to British exporters the potential of the Hong Kong market both in its own right and as a stepping stone to China and the Western Pacific growth area have been extremely useful.
Bold/ Hong Kong/China Relations
18. Hong Kong's relations with resident Chinese officials and with Guangdong continue to be pragmatic, friendly and satisfactory. It is noticeable that if leading Chinese personalities come to Hong Kong they now have no inhibitions about meeting me or other members of the Government. The Chinese Government followed up their invitation to me in 1979 with one to Sir Philip Haddon-Cave last year and his visit to Peking was a distinct success.
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