CONFIDENTIAL
FM HONG KONG
TO PRIORITY FCO
TELNO 2089
OF 31135OZ MAY 88
INFO PRIORITY PEKING
CONFIDENTIAL
НКВ
OBDIST
180
065226
MDLIAN 1327
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
CONCERNS 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
THOSE GIVEN TO HONG KONG SQUATTERS. AFTER 9 YEARS, THERE WAS REAL FRUSTRATION AT THE FAILURE TO FIND A SOLUTION. HONG KONG
PEOPLE SAW THIS ISSUE AS A TEST OF WHETHER PUBLIC OPINION HERE
REALLY COUNTED WITH HMG. LEGISLATIVE COUNCILLORS, WITH ONE ABSTENTION, HAD ENDORSED A MOVE TOWARDS SCREENING AND DETENTION AND AT LEAST HALF OF THEM PROBABLY FAVOURED STILL HARSHER MEASURES. INCLUDING PUSHING NEWLY ARRIVED BOATS OUT TO SEA. HOWEVER, EXCO 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 WAS A TEST OF HMG'S GOOD FAITH. GIVEN THAT AN ENTIRE SOLUTION WAS NOT IN HMG'S GIFT, THIS WAS A TEST THAT HMG COULD NOT FAIRLY BE EXPECTED TO PASS. HE WAS GRATEFUL FOR MEMBERS' RECOGNITION
THAT A NEW POLICY MIGHT NOT NECESSARILY WORK. NOR COULD WE PRETEND THAT THE MATTER COULD BE RESOLVED BY OPENING THE WORLD
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