NOTE FOR FILE

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HKB 027/4

RECEIVED IN REGISTRY

04 AUG 1993

CESY OFFICER

INDEX

PA

dOVERNOR

REGISTRY

Action Taker

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:

92

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.

3.

So

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

4.

It

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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