TNAG-0902-FCO40-1112-Implications-for-Hong-Kong-of-changes-in-British-nationality-1979 — Page 173

CONFIDENTIAL 2

3. Mr Murray gave an assurance that the FCO would continue to argue the Hong Kong case as strongly as possible. We would pursue the question of getting stronger arguments in support

of that case.

Royal Navy Patrol Boats

4. Mr Murray asked whether there would really be a signifi- cant reaction from Unofficials in Hong Kong if the contracts

for all five of the boats were placed in the UK. Mr Davies said he could not predict what the reaction might be, but with

Hong Kong now paying three-quarters of the bill, he thought it important that agreements of this sort should not be so phrased as to exclude Hong Kong firms right from the start. He also suggested that the MOD themselves might be in favour of local construction if it proved cheaper.

Immigration from China

5. Mr Lavies agreed with Mr Murray that this remained a worrying problem. The numbers had not yet come down to accept-

able levels. CEF favoured taking firm action now to control legal immigrants, but the Hong Kong authorities were well aware that it would be impossible to make controls effective without some degree of Chinese cooperation. Mr Murray said that we would be guided by the Governor in judging when it would be appropriate to make a further move. But this would be a major subject on the agenda for Mr Blaker's discussions with the Governor if he goes to Hong Kong next month.

CONFIDENTIAL