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Multi-Fibre Arrangement (See Brief No 7 for detailed background)

HMG concerned to ensure fair treatment of Hong Kong

4.

because of constitutional link and open market policy.

Commission mandate negotiated compromise between attitudes

of member states.

5.

EC textile industry in very difficult position.

Essential that solution be found which represents a fair

balance between difficulties of EC industry and need of

supplier countries.

6.

[If pressed on UK position] UK textile industry facing

severe difficulties. Since beginning of 1980 output down

25% and over 170,000 jobs lost. Have to take this into

account.

Vietnamese Refugees in Hong Kong

7.

Admire Hong Kong's role and appreciate difficulties

caused by continuing inflow. We have already done a good

deal and continue to take ship rescue and family reunion cases.

Will continue to encourage other resettlement countries and

UNHCR in their efforts. But there are real difficulties in UK

and cannot hold out much hope of new quota.

Hong Kong and the Falklands

8.

Grateful for Hong Kong's support. Grateful also for

Hong Kong's very generous donation to South Atlantic Fund.

- 7.

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/Will

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Will of course be used to help families of Hong Kong seamen

as well as those of UK personnel.

9.

[If comparisons are drawn between Hong Kong's situation

and that of the Falklands] No real comparison between the

Relations with China excellent.

two situations.

- 8

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/BACKGROUND

BACKGROUND

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The Future of Hong Kong

1.

See Brief No B2 for China Visit.

Nationality Act 1981

2.

Hong Kong never liked proposals for separate citizenship

categories. Would have much preferred no change from unitary

citizenship of UK and Colonies. Some changes to suit Hong

Kong were agreed, eg additional category of British Dependent

Territories' Citizen (BDTCs); entitlement to registration of

BDTC as British Citizen after 5 years' residence in UK.

3.

Hong Kong saw proposals as attempt to distance Hong

Kong from UK. Home Office saw Hong Kong's proposals as

attempt to frustrate aim of separate citizenship for those

closely connected with the UK itself.

4.

In last stages of Bill in Lords, Hong Kong particularly

anxious to have statement in Act that BDTCs were British

Nationals. HMG opposed because primary purpose of Act (to

clarify situation by bringing citizenship categories into

line with immigration status and rights of abode) would have

been undermined. Gibraltar amendment and Ministerial assurances

that discretionary treatment would be given to those Falklanders

who do not have the right of abode in UK have added to ill-feeling.

/5.

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CONFIDENTIAL

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