HONG KONG
CONFIDENTIAL
US Economic Stake in Hong Kong
5. The United States has a large economic stake in Hong Kong's
continued prosperity. In 1988 the US was Hong Kong's largest market and its fourth largest supplier of imports. The US has the largest
cumulative investment in Hong Kong's manufacturing industry (US$7.7 billion in 1987) but has recently been overtaken by Japan in terms
of annual investment flows.
US Support for Hong Kong
6.
Since the events of 3/4 June we have been doing everything
possible to rally international support for Hong Kong as part of our efforts to restore confidence in the territory. Sir G Howe sent two
messages to Mr Baker before the Paris Economic Summit, stressing the
need for the international community to help boost confidence in
Hong Kong and flagging up the question of international support if
things were to go disastrously wrong in the future. He did not receive a written response to either of these messages. At the Paris Summit, the Americans, like other partners, were reluctant to make concrete commitments on immigration but did accept an
encouraging reference to Hong Kong in the declaration on China,
acknowledging that the continuing support of the international community is essential to maintaining confidence in Hong Kong. the Secretary of State met Mr Baker on 30 July, discussion focussed on Vietnamese boat people rather than wider Hong Kong issues.
7.
When
We cannot reasonably expect the United States (or anyone else) to come up with absolute commitments so far in advance of any
possible exodus. Partners are also likely to want to see the shape of our nationality package before deciding whether they can help more concretely. Nevertheless it would be helpful to float with the Administration the idea recently put forward by Congressman Solarz in an interview given in Hong Kong that the United States, Canada, Australia and other countries might consider taking measures similar
to our own proposed nationality package ie offering guarantees of
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