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SECURITY CLASSIFICATION

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DSR 11C (Revised 5/87)

families. But as I had to make clear during my visit to

Hong Kong earlier this month, there is simply no way that

the British Government could grant to several million

people the right to come and live in Britain.

Immigration on such a massive scale would pose immense

practical problems. It would test our capacity in all

housing, employment, transport,

kinds of areas

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inner-city services - to an unprecedented degree. A

recent report by the Select Committee on Foreign Affairs

reached a similar conclusion. There would be no more

cruel deception than an insurance policy on which we

could not deliver.

18. But this does not mean that we are washing our hands

of this problem. The British Government will do

everything we possibly can to meet the concerns of the

Hong Kong people:

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Firstly, we have made clear tht if the worst came to

the worst, Britain would not close the door. We would do

everything in our capacity to help and if the numbers

leaving Hong Kong were larger than we could deal with

alone, we would mobilise support from the international

community. We have already started work on this.

Secondly, we are looking urgently at what changes can

be made to our immigration arrangements to offer some

reassurance to Hong Kong people. We envisage a scheme

which will make some provision for people in both the

private and public sectors on the basis of their

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