4

Of course, many people here would have preferred the

numbers covered by the scheme to be larger. We want

the scheme to have the strongest possible impact on

confidence. But we have had to balance this desire

against our ability to accept people for settlement in

Britain should that ever be necessary. I believe this

political reality is well understood in Hong Kong. It

is a reality which cannot be ignored. Recent

controversy at home makes that clear.

We could have gone for an easier option, involving the

guarantee of settlement without full British

citizenship. We did not do that, because we judged

that anything less than citizenship would not match the

needs of Hong Kong. We chose the high road. Our

obligations under the Joint Declaration to maintain

Hong Kong's stability and prosperity meant that nothing

less than this would do, whatever the difficulties.

That is one of two crucial decisions on Hong Kong which

we took before Christmas. The second was to authorise

the Hong Kong Government to proceed with the mandatory

repatriation of 51 Vietnamese Boat People.

This was

not a decision which I relished, nor an operation which

I find in any way attractive.

But it was right to

proceed, and to face the inevitable criticism from

people in Britain and around the world.

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