B:

NATIONALITY

1.

PROGRESS ON NATIONALITY SCHEME?

We are working urgently on scheme to give the assurance of right of abode to some people in both private and public sectors on basis

of value of service to Hong Kong as well as connections with UK.

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Our aim is to give people whose professional, administrative, technical and managerial skills are essential for continued success of Hong Kong confidence to remain in territory.

Great, deal of detailed work involved in defining parameters of

scheme. But considerable progress has now been made. Team of FCO/Home Office officials visited Hong Kong last month for detailed consultations with Hong Kong Government and private sector.

Hope to be able to announce details around turn of the year.

2.

NUMBERS

Will be as generous as possible within the political and practical constraints.

3. PROGRESS IN MOBILISING SUPPORT OF INTERNATIONAL COMMUNITY FOR

MULTINATIONAL SAFETY NET?

Since events of 3/4 June, we have been doing everything possible to rally international support for Hong Kong, including idea of a

multinational safety net, as part of our efforts to restore

confidence in the territory.

Raised the matter on a number of occasions, including Madrid

European Council, Paris Economic Summit and Commonwealth Heads of Government meeting in Kuala Lumpur, as well as in bilateral contacts with United States, Canada, Australia and other countries.

In Paris Summit Declaration and CHOGM communique our partners have publicly acknowledged that international community has important role to play in maintaining confidence in Hong Kong.

Appreciate measures already taken by Singapore and France to give assurance of right of abode to some Hong Kong people without requiring them to leave territory.

MAXAEL

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