11. TAIWAN

(a) Mr Heath said that the Hong Kong issue was an important

precedent to the issue of Taiwan for the People's Republic of China, and that it was in China's best interests to reach a satisfactory agreement. This view was echoed by a number of

other speakers.

12.

THE NEED FOR TRUST

(a) Mr Heath emphasised the need for good relations with China to ensure the best possible future for Hong Kong. This view was echoed by Sir Bernard Braine (Conservative), Mr Wrigglesworth (SDP) Sir Peter Blaker (Conservative) and Sir Paul Bryan

(Conservative).

13. THE IMPORTANCE OF GATT:

(a) Mr Healey emphasised the importance of Hong Kong's participation

in GATT, the MFA and the continuing convertibility of the Hong Kong dollar.

(b) Mr Miller (Conservative) said that he was surprised that there

had not yet been negotiations with the IMF and GATT over Hong Kong's future status.

14.

RELIGIOUS FREEDOM:

(a) Mr Parry (Labour) pressed for guarantees of continuing religious

freedom in Hong Kong.

15. STATUS OF BRITISH AND OTHER FOREIGN INTERESTS IN HONG KONG

AFTER 1997:

(a) Mr Amery (Conservative) said that there was a continuing role

for British and other foreign interests (including consular protection in Hong Kong after 1997.

(b) Mr Walden (Conservative) and Mr Miller (Conservative) expressed

the hope that there would be a continued British presence in the administration of Hong Kong after 1997.

16.

UNDERTAKINGS:

(a) Mr Amery (Conservative) said that the Government had obligations to members of the Crown Service in Hong Kong, and that we should accept those immigrants who had capital and skills.

(b) Mr Miller (Conservative) said that we should guarantee the

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