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CABINET MEETING: 6 JULY

VISIT TO HONG KONG: 2-4 JULY

CONFIDENTIAL

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Purpose: to reassure Hong Kong people of our commitment to territory, determination to safeguard its future. But also had to explain impossibility of meeting demand for right of abode for all.

[Cannot be sure that HK will recover]

Serious crisis of confidence. Feelings running high.

Emigration will rise sharply. Concern about economic recession. Demonstrations. Anger directed at China and Britain.

Met people from all walks of life (businessmen, professionals,

students, civil servants). Useful sessions with Executive and

Legislative Councils. Right of abode persistent theme (manity ven)

Emphasized what could be done to restore confidence, building on

Joint Declaration (step up democratic development; Bill of Rights;

take up with Chinese their right to declare state of emergency in

Hong Kong, stationing of PLA in Hong Kong etc).

etnar

Stressed progress being

Visited Vietnamese boat people camps.

(inconfidence: could start this mouth)

made on repatriation Arrival rate still high (1,000 a week), but

lower than pre Conference level.

(S.B.7.C)

While ruling out right of abode for all, confirmed were looking

urgently at scheme covering some people in private/public sectors on

basis of value of service to Hong Kong as well as connections with

Britain. Also promised to try to mobilise international community

to help in worst case.

E

OD (K) has been examining scheme to reassure key people in business, professions, civil service. Might provide citizenship or indefinite right of entry to UK. Points system to determine

eligibility. Further work needed on details, including numbers.

Hope to announce scheme as soon as possible.

Have office.

Uyant work with

CONFIDENTIAL

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