CONFIDENTIAL

TOP COPY Q DIST 7

in

172764

MDHIAN 2514

CONFIDENTIAL

FM OTTAWA

TO IMMEDIATE FCO

TELNO 174

OF 171345Z MARCH 88

INFO PRIORITY HONG KONG

ния HUD 341/5

KONG 3

HONG KONG TELNO 1084 TO FCO: EMIGRATION FROM HONG KONG

SUMMARY

1.

CANADIAN MINISTERS HAVE PROBABLY GOT THE MESSAGE THAT HONG KONG IS MORE VALUABLE TO CANADA AS AN EXPORT MARKET AND LONG-TERM

AN GATEWAY TO CHINA THAN AS A SHORT-TERM SOURCE OF FUNK CAPITAL. INDIRECT APPROACH MAY BE THE BEST WAY OF GETTING HONG KONG'S VALID COMPLAINT ACROSS.

DETAIL

2.

THE CANADIAN FINANCE MINISTER HAS INDEED BLOWN THE GAFF ON CANADIAN PIETY EXCLAM. IT HAS LONG BEEN AN OPEN SECRET THAT CANADA'S SPECIAL IMMIGRATION SCHEME FOR ENTREPRENEURS WAS INSTITUTED WITH A PARTICULAR EYE TO HONG KONG. I DOUBT HOWEVER WHETHER A DIRECT APPROACH TO MR WILSON WILL BE THE BEST TACTIC FOR DEALING WITH HIS INDISCRETION.

3.

IT SEEMS CLEAR THAT CANADIAN MINISTERS NOW SEE HONG KONG AS HAVING MUCH GREATER IMPORTANCE AS A LONG-TERM EXPORT MARKET IN ITS OWN RIGHT AND AS A GATEWAY TO CHINA. MS CARNEY, THE TRADE MINISTER RECENTLY MADE THESE POINTS IN A FORTHRIGHT SPEECH TO THE HONG KONG- CANADA BUSINESS ASSOCIATION. (COPIES FOLLOW BY BAG TO HKD AND HONG KONG). SHE ALSO ADMITTED THAT SHE HAD INITIALLY VIEWED HONG KONG AS A SOURCE OF ENTREPRENEURS WITH CAPITAL SEMI-COLON AND CLAIMED THAT THESE HAD BROUGHT TO CANADA DOLLARS 590 MILLION IN 1986 AND DOLLARS 776 MILLION IN 1987. BUT THE THRUST OF HER SPEECH WAS CONSTRUCTIVE AND IN LINE WITH HER OWN VISION OF THE PACIFIC REGION AS A PRIME AREA FOR CANADIAN ECONOMIC CONCENTRATION IN THE FUTURE. AS SOON AS THE DATES FOR THE GOVERNOR'S VISIT BEGIN TO FIRM UP (HK TELNO 611 TO YOU) WE WILL WARN MS CARNEY'S OFFICE: SHE SPENDS A GOOD DEAL OF TIME IN VANCOUVER (HER OWN CONSTITUENCY) AND WILL ALMOST CERTAINLY WISH TO MEET SIR DAVID WILSON.

WE

4. IN ARGUING THAT CANADA SHOULD TAKE MORE VIETNAMESE REFUGEES, HAVE MADE THE POINT THAT CANADA IS DOING VERY WELL OUT OF HONG KONG. WE BELIEVE THAT, RATHER THAN COMPLAIN DIRECTLY TO THE MINISTER OF FINANCE, WHOM WE SHOULD ANNOY WITHOUT USEFUL EFFECT, WE WOULD

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CONFIDENTIAL

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