TNAG-1038-FCO40-1288-Future-of-Hong-Kong-1981 — Page 174

GF 323

CONFIDENTIAL

機密

The student fees decision was also unfortunate in view of the BNB proposals It would be seen by some as yet another indication of the UK distancing itself from Hong Kong. Foreign Secretary said this was an unfortunate misunderstanding, The ties between the UK and Hong Kong were as strong as ever. He appreciated the force of the argument that non-alien overseas students should enjoy some advantage over aliens, and would pursue this point.

Macau's Position vis-a-vis HK should Portugal become a Member of EEC

Hon. S.L. CHEN reminded Lord Carrington of the economic consequences for Hong Kong should Portugal obtain favourable EEC terms for Macau. Foreign Secretary said this would be resolutely resisted by HMG. It was wholly unacceptable and "not on" as far as he was concerned.

The Future of Hong Kong

Hon. Lydia DUNN reported on growing commercial and middle-class concern over Hong Kong's uncertain future. There was growing pressure from overseas interests and prospective investors and it was becoming increasingly important to gain some further reassurances.

Foreign Secretary said he fully

appreciated the situation. He hoped it would be possible to preserve the status quo. If there was opportunity to do so, he intended to "test the water" in Peking.

Hon. Lydia DUNN said a short/medium term solution was a first requirement. Long- term objectives can wait. It was important to hold the line and to obtain some reinforcement to existing assurances. Hon. Sir S.Y. CHUNG said he was worried particularly about the attitude of young people. They were naturally concerned about their future and Hong Kong could not afford to lose them. Lord Carrington said he fully accepted this and the importance of obtaining some early reassurance.

Multi Fibre Arrangements

Hon. Lydia DUNN stressed the importance of HMG giving Hong Kong its full support on this issue and in the formulation of any successor agreement to the MFA. It was vitally important to Hong Kong that the terms of any successor

5

CONFIDENTIAL

機密