CONFIDENT IAL

SECRETARY OF STATE'S VISIT TO HONG KONG, 13-16 JANUARY 1990

BRIEF NO 1: STEER ING BRIEF

1. The Secretary of State is visiting Hong Kong from 13 to 16 January. A scene setting telegram from the Governor about the current issues and the mood in Hong Kong is attached (Brief No 2). There is still much nervousness and uncertainty following the events in China last year. But the atmosphere is significantly better than it was in July when Sir G Howe visited the territory. The Secretary of State can therefore expect far less of the overt hostility which Sir G Howe encountered on that occasion. The

visit will nevertheless not be an easy one.

2. The Government have in the past month. taken two important decisions affecting Hong Kong: the announcement on 20 December of a nationality package; and the decision earlier that month to repatriate 51 boat people to Vietnam. We have also demonstrated to a readiness to take on the Chinese on matters of importance to

All Hong Kong, such as the Central/Wanchai Reclamation Project. this should enable the Secretary of State to argue, rightly, that the Government are discharging their responsibilities to Hong Kong through actions, and that we are ready to take tough

decisions when necessary.

3.

(a)

(b)

The objectives of the visit are:

to reaffirm HMG's commitment to Hong Kong and to demonstrate a readiness to act to discharge this commitment;

as far as possible, to reassure Hong Kong people about the future and, in particular, to boost the morale of the Civil

Service;

BODAAO

CONFIDENTIAL

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