CONFIDENTIAL
HKB 02612
062007
MDHIAN 0148
CONFIDENTIAL
FM WASHINGTON
TO IMMEDIATE FCO
TELNO 2699
OF 170325Z OCTOBER 89
INFO IMMEDIATE HONG KONG
FROM PS GOVERNOR HONG KONG.
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TOP COPY
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GOVERNOR'S MEETING WITH US SECRETARY OF STATE JAMES BAKER, 16 OCTOBER.
SUMMARY: THE GOVERNOR EMPHASISES NEED FOR CONTINUAL US SUPPORT
FOR HONG KONG AND MAINTENANCE OF US INVESTMENT IN THE TERRITORY.
POINTS TO HARM TO HONG KONG IF FURTHER SANCTIONS AGAINST CHINA AND
OF EXCLUSION FROM APEF PROCESS. BAKER REITERATES STANDARD US
POSITION ON VBP.
2.
THE US SECRETARY OF STATE REAFFIRMED AMERICAN INTEREST IN AND
CONCERN FOR HONG KONG AND ITS FUTURE. THERE WAS CONTINUING PRESSURE FROM CONGRESS FOR FURTHER ECONOMIC SANCTIONS AGAINST CHINA WHICH THE ADMINISTRATION WOULD TRY TO AVOID. BUT THEIR ABILITY TO DO SO DEPENDED ON DEVELOPMENTS IN CHINA. BAKER REFERRED BRIEFLY TO APEF AND US SUPPORT FOR HONG KONG'S INCLUSION. THE GOVERNOR SPOKE OF THE DIFFICULTIES OF MANAGING THE TRANSITION AND THE END OF BRITISH ADMINISTRATION IN HONG KONG, OF HKG'S ATTEMPTS TO REBUILD CONIFIDENCE IN THE AFTERMATH OF TIANANMEN AND
THE MAJOR INFRASTRUCTURAL PLANS HE HAD RECENTLY ANNOUNCED. HE
EMPHASISED THE CRUCIAL ROLE OF US INVESTMENT IN HONG KONG AND THE RISK OF FURTHER ECONOMIC SANCTIONS ISOLATING CHINA AND DAMAGING
HONG KONG IN THE PROCESS. HE ADDED THAT EXCLUSION OF HONG KONG FROM THE APEF WAS POLITICALLY DAMAGING, GIVEN THE NEED TO UNDERLINE HONG KONG'S ECONOMIC AUTONOMY.
VIETNAMESE BOAT PEOPLE.
3. THE GOVERNOR EXPLAINED THE POLITICAL PRESSURES IN HONG KONG FOR THE GOVENEMENT TO PUT IN PLACE DURABLE ARRANGEMENTS TO DEAL WITH THE CONTINUING INFLUX OF VPB, FAILING WHICH THERE WOULD BE INTENSE POLITICAL PRESSURE TO WITHDRAW FIRST ASYLUM. THERE WAS
A BREATHING SPACE OVER THE NEXT FEW MONTHS BEFORE THE NEW
ARRIVALS SEASON. BUT ACTION HAD TO BE TAKEN DURING THIS PERIOD
HONG KONG COULD NOT SURVIVE ANOTHER YEAR LIKE 1989. HKG RECOGNISED
AMERICAN POLITICAL DIFFICULTIES BUT OVER NON-VOLUNTARY REPATRIATION. IF THE TWO SIDES HAD TO DISAGREE, IT WAS IMPORTANT TO KEEP THE TEMPERATURE DOWN. BAKER STRESSED THAT THERE WOULD BE A STRONG US
REACTION POLITICALLY TO INVOLUNTARY REPATRIATION SO SOON AFTER
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