PS/Lord Trefgarne
cc: Mr Adams
PS/LPS
HKGD
SED
SAMD WIAD
CONFIDENTIAL
pa
372
2919
ник 34011
RECE
70. 51
? @ SEP 1981 SFP1981
DESK OFFICER INDEX
PA
#STAY
Antina Taken.
Pas 2919
370A
NATIONALITY BILL: GIBRALTAR, HONG KONG AND THE FALKLAND ISLANDS
1. Before this afternoon's meeting with Lord Trefgarne, /I offer the following comments on Mr Howell's Submission of 25 September.
2. I hope that Ministers can agree on the action recommended in
the Submission. In support of this I put forward the following
additional arguments:-
(a) Hong Kong are concerned with their political relation-
ship with the UK and not with improving their chances of
immigration to the UK. At the root of the problem is the
question of maintaining confidence in the present and
future stability of Hong Kong. Half of the equation here
depends on relations with China but equally important, and
more readily criticised, is the perception of HMG's attitude
towards the dependent territory. If HMG appears to have
accepted the Gibraltar amendment without a fight, and were prepared also to admit a similar concession for the Falkland Islands, without acting to redress the balance vis-à-vis
Hong Kong, there would be substantial damage to the political
relationship with Hong Kong.
(b) Such damage could manifest itself in the commercial
field, where there is considerable feeling that the UK has
been given too easy a run in obtaining major contracts in
which the Executive and Legislative Councils have a say.
(c) It is however more than harm to our trade that is at
stake. Regrettably for the first time the question of the
future of Hong Kong has become the subject of public debate
and anxiety there. This will become more intense. HMG's
handling of the Nationality Bill could continue for years
to be a cause of irritation with Britain in Hong Kong and
make a smooth transition from pre- to post-1997 much more
difficult. The Chinese Government would hold it against us
CONFIDENTIAL
/if