by Sir S. Y. CHUNG and Mr O. V. CHEUNG with Ministers and others on their visits to London;
by direct contacts in Hong Kong with Sir Anthony Royle and the two visiting MPs and in London through the Hong Kong Commissioner with members of the Anglo-Hong Kong Parliamentary Group and others;
by other Hong Kong organisations in their private capacities through their own channels.
In addition the Governor has advised the FCO that he wishes to see the Secretary of State for Foreign and Commonwealth Affairs and the Home Secretary in early March. At a meeting with UMELCO on 25th February a decision was left over whether the Governor should be accompanied by Unofficials and/or whether Unofficials wished to make a separate visit to London. It will be necessary to come to a decision on these visits as quickly as possible.
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In considering further tactics, it is necessary first to assess which of the proposals put forward in this memorandum are politically capable of attainment and to rank them in order of priority. Thereafter it will be necessary to decide whether all or only some of these proposals should be put forward.
Economic Considerations
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The main consideration as far as the economy is concerned is that the changes to the status of CUKCS are likely to accelarate the emigration of the young well-educated part of the population that would form the managers and entrepreneurs of the future. It has been argued (including by some businessmen) that, despite denials to the contrary by HMG, any change in the status of CUKCs would be interpreted as an indication of unfavourable British attitudes towards Hong Kong's future, and that particularly if this change in status led to a reduction in the likelihood of CUKCS being able to settle in Britain, those who could afford to do so would seek to establish an appropriate status in another country. It is difficult to judge whether the amendments proposed in paragraphs 11 to 13 would be sufficient to prevent this acceleration. The answer probably is any change will tend to accelerate the emigration process and that the only sure way of avoiding it is to retain the present position.
G.S. 166
CONFIDENTIAL #