CONFIDENTIAL
FM HONG KONG
TO PRIORITY FCO
TELNO 2089
OF 31135OZ MAY 88
INFO PRIORITY PEKING
CONFIDENTIAL
НКВ
189
065226 MDLIAN 1327
TOP SY BRIEF N: 2
ANNEX A
4
SECRETARY OF STATE'S MEETING WITH THE EXECUTIVE COUNCIL
THE SECRETARY OF STATE MET THE EXECUTIVE COUNCIL THIS MORNING. THE MEMBERS DREW ATTENTION TO THE SATISFACTORY PROGRESS IN THE ECONOMY OVER THE LAST TWO YEARS, BUT REFERRED TO UNDERLYING ONCERNS AT THE TRANSFER OF MANUFACTURING ACROSS THE BORDER TO CHINA, WHERE ABOUT 2 MILLION PERSONS, OR TWICE THE HONG KONG MANUFACTURING LABOUR FORCE, ARE NOW WORKING FOR HONG KONG ENTERPRISES AND WHERE PRODUCTIVITY WAS NOW SAID TO EXCEED THAT OF HONG KONG WORKERS. OTHER ECONOMIC CONCERNS INCLUDED THE
LOSS OF PROFESSIONALLY QUALIFIED PEOPLE TO EMIGRATION AND GROWING INFLATIONARY PRESSURES.
2. MEMBERS SAID THAT VIETNAMESE REFUGEES WERE THE MAJOR CURRENT PREOCCUPATION. HONG KONG PEOPLE WERE CONCERNED THAT DOUBLE STANDARDS WERE BEING APPLIED WHEREBY IMMIGRANTS FROM CHINA WERE PROMPTLY RETURNED TO CHINA IN HANDCUFFS, WHILE ARRIVING VIETNAMESE REFUGEES WERE GIVEN PRIVILEGES THAT EXCEEDED EVEN
AFTER 9 YEARS, THERE WAS THOSE GIVEN TO HONG KONG SQUATTERS.
HONG KONG REAL FRUSTRATION AT THE FAILURE TO FIND A SOLUTION.
A TEST OF WHETHER PUBLIC OPINION HERE PEOPLE SAW THIS ISSUE AS REALLY COUNTED WITH HMG. LEGISLATIVE COUNCILLORS, WITH ONE
BSTENTION, HAD ENDORSED A MOVE TOWARDS SCREENING AND DETENTION AND AT LEAST HALF OF THEM PROBABLY FAVOURED STILL HARSHER MEASURES,
HOWEVER, EXCO INCLUDING PUSHING NEWLY ARRIVED BOATS OUT TO SEA. APPRECIATED THAT THE NEW POLICY PRESCRIPTION WOULD NOT NECESSARILY
WORK.
3. THE SECRETARY OF STATE SAID THAT HE FULLY UNDERSTOOD HONG KONG'S FRUSTRATION AND THE FEELING THAT DOUBLE STANDARDS WERE BEING APPLIED. HOWEVER HE WAS UNEASY ABOUT THE SUGGESTION THAT THIS GIVEN THAT AN ENTIRE SOLUTION WAS A TEST OF HMG'S GOOD FAITH.
THIS WAS A TEST THAT HMG COULD NOT FAIRLY WAS NOT IN HMG'S GIFT, BE EXPECTED TO PASS. HE WAS GRATEFUL FOR MEMBERS' THAT A NEW POLICY MIGHT NOT NECESSARILY WORK. PRETEND THAT THE MATTER COULD BE RESOLVED BY OPENING THE WORLD
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RECOGNITION
NOR COULD WE