TNAG-1739-FCO40-2455-Relations-between-Hong-Kong-and-the-UK-1988 — Page 24

SECRET

FM HONG KONG

TO IMMEDIATE FCO

TELNO 647

4

OF 15025OZ FEBRUARY 88

SECRET

MILD 243/12

TOP COPY Q DIST ?

075463

MDHIAN 7932

HKB 0ad12

'Fi.

* MAR 1988

FOLLOWING STRICTLY PERSONAL FOR HUM, HKD

HK0243/12-

YOUR TELNO 313: UK/HK BILATERAL ISSUES

1.

FROM GOVERNOR

I DO OF COURSE REALISE THAT VARIOUS HONG KONG ISSUES BECOME

INTERRELATED WHEN CONSIDERED IN LONDON, PARTICULARLY WHEN THEY GO

TO THE TOP AND REQUIRE SOME FINANCIAL MOVE BY THE UK TO DEAL WITH

A HONG KONG INTEREST.

2. IT IS EQUALLY IMPORTANT TO REMEMBER THAT THESE ISSUES, AND ALL OTHERS INVOLVING THE UK/HK RELATIONSHIP, ALSO BECOME INTERELATED HERE, PARTICULARLY IN THE EYES OF EXCO, LEGCO AND POLITICAL COMMENT- ATORS. THEY ARE ALL SEEN AS PART OF THE WAY IN WHICH HMG BEHAVES

TOWARDS A DEPENDENT TERRITORY IN THE FINAL YEARS BEFORE THAT

TERRITORY ENTERS AN UNWELCOME FUTURE AS A RESULT OF DECISIONS IN WHICH ITS PEOPLE COULD NOT PARTICIPATE. ON AN EVEN WIDER CANVAS,

THE WAY THE UK/HK RELATIONSHIP IS MANAGED OVER THE NEXT FEW YEARS

WILL BE SEEN IN TERMS OF HOW BRITAIN DEALS WITH THE LAST CHAPTER OF

A LONG IMPERIAL HISTORY.

3.

BRINGING THESE ISSUES FROM THE ABSTRACT TO THE PRACTICAL, I REALISE THAT THE BUNCHING OF VARIOUS PROBLEMS DOES CREATE DIFFIC-

ULTIES IN ACHIEVING THE RIGHT SOLUTION. I WOULD HAVE WISHED THAT THE GENERAL COMPENSATION SCHEME, WHICH HAS BEEN UNDER DISCUSSION BETWEEN HONG KONG AND LONDON SINCE BEFORE MY ARRIVAL, HAD BEEN SETTLED LONG SINCE. BUT I DO NOT UNDERESTIMATE THE DIFFICULTIES

AT YOUR END AND UNDERSTAND THE REASONS WHY THE MATTER IS STILL UNRESOLVED. THAT BEING SO, OUR IMMEDIATE PRIORITIES MUST BE DEFENCE COSTS AGREEMENTS FIRST AND GENERAL COMPENSATION SCHEME LATER. (I

HAVE TELEGRAPHED SEPARATELY ON THE LATTER POINT AND WILL BE FOLLOWING UP WITH A FURTHER SEPARATE TELEGRAM ABOUT THE TIME SCALE

OF POSTPONEMENT OF ARRANGEMENTS HERE.)

4.

A BRITISH CONTRIBUTION TO THE THIRD UNIVERSITY IS OF A COMPLETELY DIFFERENT ORDER TO OUR OTHER PROBLEMS. IT IS BY NO MEANS HIGH ON MY LIST OF PRIORITIES. INDEED IT SHOULD BE SEEN ENTIRELY AS A MATTER OF WHETHER THE UK SEES VALUE IN SOME INVOLVEMENT IN AN INSTITUTION

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