CONFIDENTIAL
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5. In the aftermath of Tiananmen, we have done what we can
to restore confidence in Hong Kong:-
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By passing the British Nationality (Hong Kong) Act to give full British citizenship to 50,000 key people and their dependants, and by encouraging other governments to take similar measures.
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By accelerating the pace of democratisation in the territory. There will be direct elections to the Hong Kong legislature (for 18 seats out of 60) for the first time in September this year.
By supporting the Hong Kong Government's decision to introduce a Bill of Rights.
By backing the Hong Kong Government's Port and Airport
Development Strategy.
We have also worked to restore a more cooperative relationship with China, through visits and messages (most recently the exchange of messages between the Prime Minister and Li Peng) and by encouraging G7 and EC partners to remove the bulk of the measures taken collectively after
Tiananmen.
6.
These actions have had some effect, although Chinese antagonism towards what they regard as anti-China measures (such as the Nationality Bill and Bill of Rights) have reduced their value. The atmosphere in Hong Kong is calmer, superficially at least, but emigration, particularly of professionals, continues at a high level.
LEGAER/3
CONFIDENTIAL