main economic problems
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inflation; high property prices; and an acute labour shortage - reflect the pace of the boom. The Basic Law drafting process is on course. A plenary meeting of the Drating Committee to consider the results of the consultation on the first draft was taking place in Guangzhou during my visit. The indications are that the next draft will register some important improvements. But it is clear that Martin Lee and his supporters will not be satisfied, and will complain loudly.
3.
On boat people, I was again struck by the strength of local feeling. There is no sympathy for the plight of those leaving Vietnam; and I was obliged to counter the arguments that Britain has created the problem for Hong Kong, or at least exacerbated it, and that Britain has the responsibility for solving it.
4. The conditionality attached to our recent resettlement offer is much resented. It is seen as a mark of our lack of sincerity and commitment. The only way to handle this was to make a virtue of necessity and to counter-attack: of course it was right to use our offer as a lever to secure the best possible response from other resettlement countries. I coupled this with an expression of confidence that our campaign on this point would succeed and that we would soon be able to implement our offer. On this basis, our current position is tenable. But if, for whatever reason, we do not act on this offer, there can be no doubt that our policy, in Hong Kong eyes, will be left without a shred of credibility.
5.
This approach largely drew the venom of even the press corps. And on the other aspects of the boat people problem screening; repatriation; liberalisation of the camps (conditions are getting much better) - there is a good story to tell. This will remain so provided there is no serious delay in arranging for the return to Vietnam of the first batch of volunteers, and no new influx before the current numbers are substantially reduced.
6.
The
There was also a storm in a tea-cup over Portuguese passports for people in Macao. George Foulkes had picked up a report about burgundy coloured passports being issued shortly in Macao and complained about the unfairness of it all. BBC carried this during my visit. As the story gathered steam, I came under pressure to explain why Macao Chinese with Portuguese nationality would be able to work in the UK after 1992, whereas Hong Kong Chinese with British nationality would not. The story is far from new the fact that it is comparatively easy for Macao Chinese to get Portugese citizenship has caused intermittent resentment in Hong Kong since the early 80's. But any reminder of our own much more restrictive policy on citizenship touches a raw nerve, and releases some of the accumulated store of bitterness. There is clearly nothing further we can do now on the nationality
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