TNAG-1420-FCO40-1903-Hong-Kong-Parliamentary-Sub-Committee-on-Race-Relations-and--1985 — Page 130

Als Walker, HKD 241

LKK 243/2)

RECEIVED IN REGISTRY

30 SEP 1985

DESK OFFICE/

ISTRY

GRS 520

CONFIDENTIAL-

CONFIDENTIAL

INDEX

FM UKMIS NEW YORK TO FCO

TELNO 788

OF 2623OOZ SEPTEMBER 85

INFO IMMEDIATE WASHINGTON

FOLLOWING FROM PRIVATE SECRETARY

SECRETARY OF STATE'S MEETING WITH SHULTZ

BILATERAL ISSUES

MEETINGS

PA

Action Taken

Asungh

Така Mr Godswy

as we could

перевски for inf

Yes

pa

SCORR

1. THE SECRETARY OF STATE OPENED WITH THE SUGGESTION THAT WE OUGHT TO TRY TO FIX IN PRINCIPLE THE ARRANGEMENTS FOR THE NEXT BILATERALS. HE SUGGESTED THAT SHULTZ SHOULD CALL IN AT CHEVENING ON HIS WAY TO THE NAC HAN BRUSSELS AN DECEMBER AND THAT WE SHOULD THINK OF A FURTHER BILATERAL IN BERMUDA IN APRIL OK MAY NEXT YEAR. 2. SHULTZ, VISIBLY DELIGHTED, SAID THAT BOTH THESE PROPOSALS WERE ATTRACTIVE. BUT HE COULD NOT BE SURE YET ABOUT THE ARRANGEMENTS IN THE PERIOD BEFORE THE NAC. THE PRESIDENT MIGHT WELL SEND HIM ROUND CAPITALS TO EXPLAIN TO FRIENDLY GOVERNMENTS THE OUTCOME OF THE REAGAN/GORBACHEV SUMMIT. BUT HE WOULD BEAR BOTH THESE #DEAS VERY MUCH IN MIND, AND OFFICIALS SHOULD KEEP IN TOUCH.

MSE

3. THE SECRETARY OF STATE SAID THAT WE WERE AWARE OF THE LATEST CONTACTS AT MINISTERIAL LEVEL ON MSE AND HE WANTED TO IMPRESS UPON SHULTZ THE POLITICAL IMPORTANCE OF A SATISFACTORY OUTCOME. SHULTZ TOOK NOTE BUT SAID THAT THIS WAS A VERY TOUGH ISSUE.

HONG KONG

4. THE SECRETARY OF STATE TOLD SHULTZ ABOUT THE ANNOUNCEMENT TODAY OF THE DECISION TO TAKE 500 WIETNAMESE REFUGEES FROM HONG KONG INTO

THE UNITED KINGDOM, AND EXPRESSED THE HOPE THAT IT WOULD BE POSSIBLE FOR THE UNITED STATES IN A SIMILAR WAY TO TAKE MORE REFUGEES.

5. SHULTZ SAID THAT HE HAD HAD TO TESTIFY TWICE THIS WEEK BEFORE CONGRESS ABOUT AMERICA'S REFUGEE POLICY. MT WAS A SUBJECT OF VERY GREAT CONGRESSIONAL CONCERN. AMERICA'S PERFORMANCE WAS GOOD, AS WERE ITS INTENTIONS, BUT THE CAPACITY WAS NECESSARILY LIMITED. BUT HE TOOK NOTE OF WHAT THE SECRETARY OF STATE HAD SAID. UNITARY TAXATION

6. THE SECRETARY OF STATE POINTED OUT THAT THERE WAS INCREASING PRESSURE IN PARLIAMENT ON THE CHANCELLOR OF THE EXCHEQUER TO TAKE ACTION UNDER THE STANDBY LEGISLATION IN THE CONTINUING ABSENCE OF LEGISLATION IN THE U S. SHULTZ SAID HE UNDERSTOOD THIS AND HOPED THAT LEGISLATION WOULD BE IMPLEMENTED IN THE US IN DUE COURSE. BUT HE DID NOT OFFER ANY IMMEDIATE PROSPECT OF ACTION.

THOMSON

STANDARD (PALACE)

MAD

CONFIDENTIAL