HKB
02714
SECRET
NOTE FOR FILE
F
CALL ON SIR J COLES BY THE GOVERNOR OF-HONG KONG, 29 JULY
Present
Sir J Coles
Mr Hum
Mr Morris, HKD
1.
The Governor
Mr Martin Dinham
The meeting covered the following main points:
HMOCS
2.
The Governor had discussed the issue with the Secretary of State who was under no illusions that the current Treasury package could be sold to HMOCS members in Hong Kong. Were the Cabinet to impose such a settlement the Governor would be bound to oppose it publicly.
So
3. The Governor thought that it would not be possible to defend the package with a safeguard at less than HK$16:£1. there was no point exploring with Treasury officials the possibility that the Chief Secretary might agree to the SPOS amendment if we accepted a sterling safeguard at a lower rate.
He recognised that there was an element of crying wolf involved but inevitably there would be public trouble with HMOCS members if HMG did not settle this issue honourably. was agreed to await the outcome of the Secretary of State's
meeting with Mr Portillo in September.
Nationality Issues
It
4. The Governor thought the Home Office had handled the
question of ethnic minorities/an assurance for ethnic Chinese
after 1997 very badly indeed. The only defensible position
for HMG was that set out by Sir Geoffrey Howe to the FAC in
1989. It was essential that this point was made by a British Minister soon. The Governor thought the Hong Kong community assumed that Britain would renege on the wider assurance.
HMG
recordgov.29.MORRIS
JEB
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