NITAAH(2)

CONFIDENTIAL

involved again in Basic Law drafting process?

Your views on key issues to be tackled?

Is stationing of Chinese troops seen as a litmus test of Chinese attitudes? Signs are that Chinese are likely to take tough attitude

both over Basic Law and in JLG.

C : Nationality

Aware from press reports that right of abode issue featured prominently at SLD Conference in Brighton which you attended last

weekend.

Well aware of argument that this would be an insurance policy and

that few would ever come. But unlike any other such policy, all

potential beneficiaries could make a claim on the policy at any time. Numbers could be very great. Wrong to make commitments which

no future Government could possibly honour.

Working on a scheme to provide assurance of right of abode in UK

to people in private and public sectors, with particular regard to

value of service to Hong Kong. Will be as generous as we can within

the political and practical constraints.

Very conscious that announcement on this issue is anxiously

awaited in Hong Kong. Work is proceeding as rapidly as possible.

But important that we get the details right.

Also making vigorous efforts to mobilise international support

(Madrid European Council, Paris Economic Summit, CHOGM, recent

bilaterals with US, Australia, Canada and Japan).

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Your views on Congressman Solarz's recent proposal for

international rescue package (UK, US, Canada and Australia to offer

right of abode without requiring residence)?

CONFIDENTIAL

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