CONFIDENTIAL

HMG naturally believe in concept of direct elections, on which British parliamentary system is based.

But do not consider it right

to impose ideas on Hong Kong from outside. Up to Hong Kong people

to decide how fast they want to move.

B.

UNDERTAKINGS BY HMG TO HONG KONG PEOPLE (DEFENSIVE)

122. ASSURANCES GIVEN BY HMG TO THOSE IN SENSITIVE POSTS

Her Majesty's Government are confident that the Joint Declaration

which they have initialled with the People's Republic of China will

allay much of the anxiety about the future which has been felt over

the last 2 years in Hong Kong. They are also confident that those

who make their home in Hong Kong will regard its terms as giving

them a basis on which they can continue to live, work and raise

their children there.

[IF PRESSED]

In response to enquiries the attention of a number of people closely connected with the present adminsitration has been drawn to the

existing provision of the United Kingdom's immigration rules for

settlement which cover a variety of categories of applicant. The

Home Secretary has the power to exercise discretion in respect of applications for admission to the United Kingdom and certain applications under nationality legislation. Applications under

these provisions will be considered on their merits in the future as in the past.

CONFIDENTIAL

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