TNAG-1031-FCO40-1281-Visits-by-Sir-Murray-MacLehose--Governor-of-Hong-Kong--to-th-1981 — Page 19

CONFIDENTIAL

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12. When Sir S Y Chung raised this he maintained that Hong Kong was

being unfairly treated because the Territory made a number of

concessions in the commercial field to the UK. These should be

acknowledged by the UK not treating Hong Kong as an outsider. It

is true that, very circumspectly, the Governor has been able to

maintain a privileged position for the UK in certain major contracts,

the most recent example was the Castle Peak 'B' Power Station for

which GEC and others were able to negotiate a package without the

deal going to international tender. Another is the continued

stipulation in the Transport Ordinance which stipulates that buses for

the two major bus companies should be supplied from the Commonwealth

(in practice Britain).

13. Some justice in this view, but it does not take account of the

whole political benefit of the UK providing the essential umbrella

for Hong Kong's continued operation as a separate economic entity.

It does, however, underline the increasing sensitivity of Hong Kong

Unofficials on issues (not confined to Students' fees) where they

suspect HMG of weakening the links between the UK and the Territory.

NATIONALITY BILL

14.

On 22 July, House of Lords voted in favour of an amendment to

the Bill which would give Gibraltarians, on account of their EC

connection, the right to become British Citizens. HMG opposed this

amendment on the grounds that the EC relationship should not affect

our Nationality Law and that Gibraltar should not be treated

differently from other Dependent Territories. It is probable that no

decision will be taken by HMG whether to attempt to reverse the

amendment until after the summer recess. The Lord Privy Seal wrote

CONFIDENTIAL

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