MELABV (2)

CONFIDENTIAL

CALL BY DR HELMUT SOHMEN ON MR MAUDE, 23 OCTOBER

Points to Make

Nationality

Passports for all not a realistic option. Agree it would be wrong to raise false expectations. But nationality scheme on which we are working will be as generous as possible within practical and

political constraints. Will cover both public and private sectors.

Genuine attempt to stem flow of enterprising and talented people.

Conscious that announcement is anxiously awaited in Hong Kong.

But important that scheme is both effective and practicable. Would

not help Hong Kong to risk announcement of package before we had got details right. Cannot say yet when announcement will be made.

Also seeking to mobilise international support. Not simply

talking about Armageddon scenario. Would also like to see other

countries offer similar arrangements to what we have in mind ie a

package to encourage people to stay rather than leave.

International investment in Hong Kong

-

Also taking other steps to rebuild confidence eg Hong Kong Government pressing ahead with new airport and other major new

infrastructure project extending beyond 1997. We have been active

in encouraging our European partners, the USA and Japan to invest further in Hong Kong. Prime Minister stressed this point during her

recent visit to Japan.

- Dr Sohmen's assessment of prospects for attracting large-scale

inward investment in these new infrastructure projects?

- Aware that there is increasing tendency for Hong Kong

entrepreneurs to invest overseas, particularly in South East Asia. Is this trend likely to affect Hong Kong's economic growth

prospects?

CONFIDENTIAL

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