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This will be a most important meeting for the Governor. Though he will have his own priorities, we would want him to be able to announce the following key points to the press after the meeting:

that the Prime Minister had reaffirmed Britain's firm commitment to maintain the stability and pros- perity of Hong Kong, to administer Hong Kong until 1997 and to work to ensure that Hong Kong's future after 1997 is secured by full implementation of the provisions of the Joint Declaration;

that he had reflected to the Prime Minister the views of Hong Kong people on right of abode in the UK, and that the Prime Minister had agreed that the scope for action in this area should be urgently reviewed (though she did not see any realistic prospect of granting right of abode to all 3.25 million British nationals in Hong Kong);

that the Prime Minister had agreed that the process of developing more representative government in Hong Kong should be advanced and consolidated.

that the UK would do all it could to help with the problem of boat people (including the financial offer above).

I am copying this letter to Colin Walters (Home Office) and Alex Allan (HM Treasury).

Yours on

ever

взви

(R N Peirce}

Private Secretary

C D Powell Esq

10 Downing Street

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