JONAAZ
HONG KONG
CONFIDENTIAL
BRIEF FOR CABINET: 15 JUNE
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Confidence severely shaken by recent events in China, although Stock Exchange, Hong Kong dollar and banking system have all held
firm.
Their
Gave evidence to Foreign Affairs Committee on 14 June. report will appear next month. Commons to debate Hong Kong before
summer recess.
Will be visiting Hong Kong on 2-4 July to try to reassure people about our continuing commitment to the territory and to examine how confidence can be restored.
Hope to be able to announce then outline of package of measures on nationality to give priority groups assurance of right of settlement in UK so as to encourage them to remain in Hong Kong.
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At same time will have to make clear that there can be no prospect of full British citizenship for all Hong Kong BDTCS. Against background of recent events in China, however, strong and widespread feeling in Hong Kong that we should concede this.
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Will also be discussing pace of democratisation in Hong Kong. Wrong to take snap decisions on this until Hong Kong opinion has settled down. Must take account of need for continuity and durability beyond 1997 of whatever we can achieve.
My visit will also focus on problem of Vietnamese boat people.
If arrivals continue Situation in Hong Kong remains very critical.
at rate of recent weeks, pressure to suspend first asylum will intensify. But outcome of Geneva Conference at which made significant progress on our objectives for Hong Kong
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should help.
[Armageddon]. Fite asked about worst case scenario, in which people avere forced to flee HK as political refugees. lexplaried that we had crtari obligation towards
refyees; in respect of HKL in respect of 414
we would have to take these obligations very seringly indeed. But of the scale of the problem was great, ove
CONFIDENTIAL d have to seek the widest possible international assistant in filpting
our obligatione