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(b)

2

need to reiterate the seriousness with which we are addressing

the problem of repatriation and, without being specific, our

readiness to deal rapidly with any sudden influx. The point we are currently driving home is that if there is an influx then

it was agreed in the near consensus document in Geneva that we

could call an emergency meeting to discuss remedies. The

diplomatic correspondents have interpreted the Secretary of

State's off the record remarks at breakfast this morning as

implying that he is about to take a tougher line with the

Vietnamese on returning the boat people: this will produce a

flurry in the newspapers this weekend.

Democracy

It would be very helpful if the Governor could set out his

assessment of the reaction in Hong Kong to the Secretary of

State's announcement on the pace of democratisation. The FT

article today suggests considerable steadying of nerve: Hong

Kong has survived the dramatic fall on the Japanese stock

exchange. We could build upon the helpful comments made at the Institute of Directors this week by Dame Lydia Dunn.

(c) Nationality Package

(a)

The press are full of speculation about the significance of the 80 MPs who have signed a motion opposing the package. The Prime Minister has been reinforcing the Government's determination to persevere. It would be helpful to go on rubbing this home.

Nationality Package: Other Countries

Although the story in the Daily Mail this week was written up

rather hard and, as the Secretary of State told the diplomatic correspondents this morning, this is not "trumpet-time", there will be advantage in continuing to impress upon the media that we are persevering with some success at getting other western countries around the world to provide nationality

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