FAYAIM(2)

[Selective scheme would be divisive:

Note your view that offer of the right of abode on selective

basis would be divisive. But believe that it would be right to act

in whatever way we can, within limits of what is practicable, to

take steps to restore confidence in Hong Kong.

[Other measures to boost confidence:

-

Government doing all it can to restore confidence, building on

foundation of Joint Declaration. Bill of Rights for Hong Kong will be introduced as soon as possible. We shall be reviewing programme for democratisation in Hong Kong, with aim of ensuring that pace of development is in line with wishes of people of Hong Kong. We shall be using every channel open to us to influence drafting of Basic

Law.

Have also made it clear to Chinese Government that it is above

all for them to demonstrate through their actions their commitment

to the Joint Declaration and to the concept of "one country two systems", and thereby to begin to regain the trust of the people of

Hong Kong.

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