1989-06-26 19:09 GOVERNMENT HOUSE

852 5 810 1592 P.03

"The Prime Minister was much more forthcoming.

We were encouraged by her sincerity and obvious concern. Although she said there were immense difficulties in giving the right of abode to all British subjects, she quickly accepted that there was an urgent need to help to restore some confidence to the people of Hong Kong, that words were no longer enough, and that Hong Kong people needed to see some action.

"She therefore promised to make a statement soon on how the powers under the Nationality Act and the Immigration rules would be exercised to allow more people from Hong Kong to qualify for the right of abode in Britain.

"We told the British Government that to say that Parliament might have a problem granting right of abode offers no solution to the present problems in Hong Kong. Gmail modest concessions will do little to motivate and energiue those who need to commit themselves now to Hong Kong' Cuture.

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"We left them in no doubt that we were committed to seeking the right of abode for all British subjects, and that we shall continue to do so, whatever package the British Government sees fit to offer.

"Our overall impression is that there is still strong ill-informed opposition in Parliament and not sufficient understanding on the part of the British public. But there is now a general acceptance that there is a crisis of confidence in Hong Kong which requires action, not words.

DO/ZA'A

S'I'D

£S:ÞT 92-90-6861

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