CONFIDENTIAL
2.
"people of the wealthy business and professional classes who perhaps represent a small portion of Hong Kong opinion." There may as yet be little opinion in Hong Kong on the Green Paper but what opinion there is UMELCO do represent. It is signifi- cant that they decided deliberately not to stimulate public discussion on the Paper because they felt that even this would in itself be damaging to Hong Kong. Silence should not therefore be taken as an indication of lack of opposition or indifference. Immigration and nationality status are sensitive matters in Hong Kong and need to be handled carefully. (iii) The final sentence reads: "But apart from the serious immi-
gration implications for the UK, the fundamental Foreign Office objection to making them British citizens is that it might affect our relations with the Chinese People's Republic during negotiations in the next few years on the lease of the New Territories." This is also wrong. It is not our relations with China during negotiations on the New Territories lease that matter. It is external and internal confidence in Hong Kong at that time that are crucial. I do not believe in any case that what Hong Kong or UMELCO seriously want is to have the right of abode in the UK; they would be quite content if the status quo were maintained.
5.
I attach a draft letter to Mr Davies.
3 April 1979
Frikiamm
P J Williamson
Hong Kong and General Department
His is very confusing; but we must, of course, take for Smedley's minute as the authoritative one. I have therefore expanded the draft to A Davies to include an indication
Sof thinking at official level, while still making it plain that we cannot say what the Goverment reaction will be. I have also added a draft reply to their Smedley
W. E. Chantill
4/4.
the Smedley, following discussion
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CONFIDENTIAL
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