CONFIDENTIAL

DEFENCE SECRETARY'S VISTO TO WASHINGTON 29-33 ANUARY

Points to Make

HKC340 RECEIVED IN/REGISTRY

HEGIS

12 FEB 1990

DESK OFFICER

in *

PA

REGISTRY

HONG KONG NATIONALITY/INTERNATIONAL SUPPOstian Taken

- As you know, exodus of talent from Hong Kong is a problem which we

take very seriously. Hope that others who benefit from business

with Hong Kong will take it seriously too.

- Clear from Douglas Hurd's visit to Hong Kong that our nationality

package announced in December seen as important step towards

restoring confidence of Hong Kong people, provided it can be

implemented quickly.

my

Impact of our package will be greatly enhanced if United States and Hong Kong's other major trading partners could follow our lead

by taking comparable measures as part of international response to

meet crisis of confidence in Hong Kong post-Tiananmen.

Understand that US Administration has been considering some

specific measures to prevent exodus of key personnel.

-

- Also encouraged to hear from Congressman Solarz that legislative

action might be taken by end of this year to provide up to 20,000

visas a year valid to 2,007.

-

Hope any such measures can be implemented as quickly as possible.

Defensive

-

(If asked for views on an international conference on Hong Kong)

Interested to note that this idea was proposed in the Solarz/Porter

resolution. Helpful to know what specific commitments the US might

make if such a conference were called.

MAXAEW (1)

CONFIDENTIAL

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