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such action was being taken in the interests of maintaining confidence in Hong Kong and not selfishly to serve the UK's own
interests. In the same vein, the more we do to meet the pressures
for change, the more difficult it will be to persuade the Chinese of
the underlying reasons for our actions. While this factor should
not dissuade us from taking action, it needs nonetheless to be borne
in mind.
Moreover, our action would be interpreted as an attempt to lure capital and talent from the territory on a massive scale, at Hong
Kong's expense. Although there is a feeling that Britain may be
losing out, our concern must be to ensure that Hong Kong does not
lose out. We would be accused, rightly, of undermining the Joint
Declaration and jeopardising Hong Kong's future prosperity.
As indicated above, it has been suggested that confidence in Hong
Kong could be sustained by giving 3 1/4 million of its inhabitants
the means to leave the territory and settle in Britain at any time
of their choosing. On the contrary, that would serve only to
undermine the stability and cohesion of the territory, on which
confidence ultimately depends. It would in effect create a society
in which the long term commitment of a majority of its members,
including those who had been established there the longest, would
always be in doubt.
Another point for consideration is that the Hong Kong Government
face a difficult situation: they are very concerned that IMG should
not be seen to single out "fat-cats" and "useful people" for
preferential treatment ("creaming off the best"). Public reaction
to such measures would be wholly negative and would be likely to
increase criticism of Britain. HMG would face further criticism for
failing to fulfil its obligations towards Hong Kong and for making
cynical moves to benefit the UK. On the other hand, however, as far
as Hong Kong Civil Servants are concerned, there is a need for
action to retain those whose services would be essential up to 1997
and to find means which would also encourage them to stay on in Hong
Kong beyond 1997.
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