SALAHM

I. EMIGRATION FROM HONG KONG

RESTRICTED

1.

Need to face up to the problem

Clearly we must face up squarely to the problem. That is why we welcome the establishment by the Hong Kong Government of a special task force to study the extend of the problem. At the same time I do not believe that the present levels of emigration are a cause for alarm or dismay.

2. It is a problem for China too

Emigration is a problem which has to be faced by HMG, the Hong Kong Government, and the Chinese Government. Each has a role to play in reassuring the people of Hong Kong that their concerns are understood and will be sympathetically handled, and that the future for them and their children will be one to which they can look forward

with confidence.

We and the Hong Kong Government are already making our best efforts to work to this end. The Chinese Government are well aware of the problems. I believe they too will make every effort to play their part, which will naturally become increasingly important in the years ahead. All concerned with the Basic Law will have been encouraged by the willingness of the Chinese authorities to listen to criticisms of the draft. The way the Chinese authorities handle the process of consultation and revision of the draft will have a major impact on confidence.

3. Will you ask other Governments to stop emigration from Hong Kong?

My Rt Hon and learned friend the Foreign Secretary has already made clear that there is no question of trying to stop people leaving Hong Kong. If people want to leave they are free to do so.

however

It is clearly in the interests of the international community that Hong Kong should continue to prosper.

It is in nobody's

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