CONFIDENTIAL

Points to Make

Business/economic climate

Temme Cammitment to legco.

Effect of "brain drain" on confidence?

Impact of Gulf crisis/oil price rise on inflation?

-

Recognise need to stress Hong Kong's long term strategy

and importance to British business as a regional financial centre and as a hub for activities in the Asia/Pacific basin

generally.

PADS

What more can be done to secure Chinese support for the

project?

Timing and decisions on major contracts? British companies.

Prospects for

-

Relations with China over Hong Kong.

In Hong Kong's interests for Britain and China to enjoy good working relationship over Hong Kong and, as far as possible, mutual trust between two sides. Your views?

Nationality

- As you know, British Nationality (Hong Kong) Act received

Royal Assent on 26 July. Our aim is to get the Selection Scheme working as soon as possible thereafter.

IMPACP/1

CONFIDENTIAL

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