CONFIDENTIAL

Background

2. The Spanish decision brings to an end arrangements under

which visas have been waived since 1988 for Hong Kong

visitors. Mr Appleyard raised the matter with Villar, the Spanish Political Director in Brussels recently, and we have tried a number of times to get the Spaniards to change their

minds or to delay the reimposition of the visa regime. The

Spaniards have remained intransigent. We see little prospect

of getting them to reverse the decision though the reason they have given (necessary to comply with Schengen Convention regulations) seems spurious. The Schengen Secretariat have told us in confidence that there is no Schengen generated

requirement for the Spaniards to take this move now.

3. We have ridden LegCo off the notion of seeking ways to retaliate, and the Hong Kong Government accepts that the Spanish move will not do major damage to Hong Kong's interests. But community sensitivity about the general issue

of visa restrictions remains high in Hong Kong and the

Governor has requested that we should not accept the

failure of our efforts before appealing to the Spanish at

ministerial level.

4.

We understand that there are two possible slots for the Secretary of State to have a word with his Spanish opposite

number working lunches for EC Foreign Ministers today, 28 September (with Warren Christopher) and on 29 September (with

the Russian Foreign Minister).

5. I submit a speaking note and background.

i Danus Jones

Deborah Barnes Jones

I agree.

Олим

well 2814.

CONFIDENTIAL

subsos.VISA.dbj

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