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right of abode which would not require people to leave Hong Kong.

8.

In the same interview, Congressman Solarz also sought to

establish a link between Hong Kong's handling of the Vietnamese boat

people problem and the international community's willingness to

provide resettlement opportunities for Hong Kong people in the

future.

Representative Government

9. The Americans find it difficult to understand why we do not

introduce 100% direct elections immediately. In any discussion of

this subject, the Secretary of State will therefore need to explain

why this is not politically feasible.

Asia Pacific Economic Forum

10. The Americans have reacted cautiously to our lobbying over Hong

Kong's participation in the November ministerial meeting of the Asia

Pacific Economic Forum. The Administration is likely to give more

weight in its calculations to relations with China than to the

merits of Hong Kong's cause.

VIETNAMESE BOAT PEOPLE

11.

The Comprehensive Plan of Action (CPA) endorsed by the Geneva

International Conference in June provided the framework for a

comprehensive solution, including the introduction of region-wide screening and commitments to resettle over 3 years the approximately 40,000 refugees currently in places of first asylum (over 13,000 of

whom are in Hong Kong). The Geneva Conference also endorsed the

principle that non-refugees should be returned to their country of

origin. It was less precise, however, on the mechanism for

repatriating those who do not volunteer to return. The

effectiveness of the Plan of Action is to be reviewed by officials

in October 1989.

12. Of the total boat people population in Hong Kong of over

55,000, around 40,000 are unlikely to acquire refugee status after

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