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PRIVACY MARKING

would pose insuperable practical problems.

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DSR 11C (Revised 5/87)

It would test

housing, employment,

our capacity in all kinds of areas

transport, inner-city services to an unprecedented

degree. The House of Commons Foreign Affairs Committee

reached the same conclusion. We cannot hold out the

prospect of right of abode if we could not in practice

provide it. There would be no more cruel deception than

an insurance policy on which we could not deliver.

In Confidence

The British Government will, however, do everything

we possibly can to meet Hong Kong people's concerns in

this area:

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 discussing this with other countries.

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 not

only of connections with Britain but also the value

of their service to Hong Kong. We hope to be able

to announce details of the scheme before too long.

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