TNAG-1258-FCO40-1591-Third-countries-and-the-future-of-Hong-Kong-1984 — Page 98

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HONG KONG:

CONFIDENTIAL

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MALAYSIAN CONCERNS

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1. When Mr Walker and I called on Dennis Ignatius, the Head of China Division in the MFA on 21 November, he made some interesting observations on Malaysian concerns about the future status of Hong Kong.

2. He said that if Hong Kong were to return - as he assumed it would - to Chinese sovereignty in 1997, this would pose problems both for Malaysian Chinese presently residing in Hong Kong and for future visits to and trade with Hong Kong, in view of current Malaysian policy on relations with the PRC. At present, the policy is essentially to keep contact between Malaysian Chinese and the PRC to a minimum. There are highly restrictive rules governing visits, immigration and trading contacts, which do not now, of course, apply to Hong Kong. He did not know how the Malaysian Government would get round these problems but siad that they would have to be studied fully and fairly as soon as the outcome of the negotiations between Britain and China became clearer. As regards Malaysian Chinese settled in Hong Kong, Ignatius implied that the Malaysian Government would be none too happy to see an exodus returning to Malaysia in the lead-up to 1997. On the other hand, their continued entitlement to Malaysian citizenship if they chose to remain in Hong Kong/China, would also pose problems.

3. I think we can be safe to assume, from what Ignatius said, that Malaysian interest in Hong Kong's future is likely to increase in the coming months, not merely as a result of disinterested curiosity!

23 November 1983

CC:

SEAD, FCO HKD, FCO Hong Kong

C McComb

HKK010/5

CMC