TNAG-0942-FCO40-1161-Visit-by-Lord-Carrington--Secretary-of-State-for-Foreign-and-1980 — Page 35

CONFIDENTIAL

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COVERING SECRET

(WP)

Briefed

Ame

Mr Clift

Enter & pa

HKK 026.17

Mr Williamson

RECEIVED IN SHOES KY. Mr Davies, FED

6 OCT 1980

DESK O

CANCELLATION OF SECRETARY OF STATES VISIT TO HONG KONG AND PEKING: FOLLOW-UP ACTION

1.

та

You asked me to consider what action, if any, would now be required on the various issues that would have come up in Hong Kong and on the subjects with a Hong Kong angle which would have been raised in Peking, had the Secretary of State's visit gone ahead.

2. There is now, I understand, a distinct possibility that Huang Hua will see the Secretary of State in London this week (Peking telegram No. 628) and that Sir E Youde will himself be going to Hong Kong and, possibly, Peking. These events should allow some progress to be made on at least some of the subjects which the Secretary of State would have tackled in Hong Kong and Peking.

3. On the basis of the briefs prepared for the Secretary of State's visit, the situation appears to me as follows:

Steering Brief:

There is nothing in this which needs action which is not covered elsewhere.

Defence Costs Agreement: No action other than to ask for a copy of Mr Hayhoe's brief (action taken with MOD).

Increase in Higher Education Fees in the UK: The situation will need to be explained to the Governor. Depending on the outcome of CRD's current draft submission, we should explore with him the possibility of introducing the part-financing scheme suggested by Hong Kong as a fall-back position to exempting students from the dependent territories from the decision to charge full-cost fees for all overseas students. This could be pursued by Sir E Youde with the Governor.

British Nationality Law: No action

Multi-Fibre Arrangement:

No action

Vietnamese Refugees in Hong Kong: We shall need to submit on the Governor's proposals for a fresh quota of 5,000 for 1981. Sir E Youde will need to be briefed.

Illegal Immigration from China: A brief for the Secretary of State's use with Huang Hua is in hand. Thereafter, the way is open for the Governor to implement Operation Champion. The timing suggested in paragraph 8 of the "Essential Facts" of Brief No.10 would still apply, although the Governor's query about Ministers wishing to consider the exact timing will need to be cleared up. This might be done by Sir E Youde.

Over Faher

/Future

CNNFIDENTIAL COVERING SECRET

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