package designed to encourage key people in all walks of life in the

community to remain.

Appreciate that many in Hong Kong would have preferred the

numbers to be larger. But we had to take account of the practical

and political constraints in Britain. Believe that the measures

that we have announced should have a significant impact on

confidence.

Not an easy decision for us to take. Legislation will be difficult and controversial. But our obligation under the Joint

Declaration to maintain stability and prosperity meant that nothing

less would do.

VIETNAMESE BOAT PEOPLE

The other tough decision I have had to take as Foreign Secretary

is mandatory repatriation. Not a decision I enjoyed taking, nor a policy which I find particularly attractive.

But never any doubt in my mind that it was right to proceed,

whatever international and domestic opinion might say.

Plain fact is that Hong Kong cannot be expected to cope indefinitely with endless stream of migrants from Vietnam. Must

find effective way of deterring the flow and of emptying the camps

as quickly as possible.

BASIC LAW

Basic Law drafting process entering crucial phase. I congratulate Hong Kong people for thorough and constructive way in which they have expressed opinions about the draft. A mature response from an increasingly mature political community. Deserves

closest attention from Basic Law draftees.

Outcome of drafting process a matter of great concern to

JONACE

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