TNAG-1745-FCO40-2464-Visits-by-FCO-officials-to-Hong-Kong--including-visit-by-Lor-1988 — Page 67

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MDLIAN 0913

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FM HONG KONG

(AMENDED DIST 7/7/88)-7 JUL 1983

FSK OFFIC

TO PRIORITY FCO

TELNO 2574

OF 051130Z JULY 88

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YOUR TELNO 1771: VISIT BY LORD GLENARTHUR: MEETING WITH EXECUTIVE COUNCIL

1. LORD GLENARTHUR MET EXECUTIVE COUNCIL ON 30 JUNE. HE BEGAN BY GIVING AN ACCOUNT OF HIS MEETINGS IN CHINA WITH THE VICE FOREIGN MINISTER, MR ZHOU NAN AND THE FOREIGN MINISTER, MR QIAN QICHEN. THE MINISTER SAID THAT HE HAD BEEN REASSURED BY THE READINESS OF THE CHINESE TO TAKE ACCOUNT OF HONG KONG'S CONCERNS ON THE BASIC LAW: THEIR SUPPORT FOR THE NEW POLICY ON VIETNAMESE BOAT PEOPLE, INCLUDING THEIR UNDERTAKING TO LOOK INTO THE PROBLEM OF COAST HOPPING: AND THEIR FAVOURABLE REACTION TO HIS POINT THAT EMIGRATION FROM HONG KONG WAS A PROBLEM FOR CHINA AS MUCH AS IT WAS ONE FOR HMG AND HKG.

2. LORD GLENARTHUR REPORTED TO THE COUNCIL ON THE ACTION THAT HAD BEEN TAKEN ON POINTS RAISED IN YOUR MEETING WITH EXCO ON 31 MAY. ON BOAT PEOPLE, HE REFERRED TO YOU MEETING WITH THE VIETNAMESE, CHINESE AND SOVIET FOREIGN MINISTERS: CONTACTS WITH UNHCR: AND THE ACTION TAKEN BY THE AMBASSADOR IN HANOI FOLLOWING THE

A NNOUNCEMENT OF THE NEW POLICY. THE MINISTER SAID THAT YOU HAD TAKEN UP WITH THE HOME SECRETARY THE QUESTION OF TREATMENT ACCORDED TO HONG KONG TRAVELLERS AT UK PORTS OF ENTRY. A COMPLETE SOLUTION WOULD TAKE TIME TO WORK THROUGH: BUT IN THE MEANTIME IMMIGRATION OFFICERS HAD BEEN REMINDED OF THE NEED FOR CARE AND CONSIDERATION WHEN PROCESSING HONG KONG TRAVELLERS.

3. MEMBERS REFERRED BRIEFLY TO RECENT DEVELOPMENTS IN THE

KONG ECONOMY AND TO THE INCREASING COOPERATION BETWEEN HONG KONG AND THE PEARL RIVER DELTA. OWING TO THE LABOUR SHORTAGE IN HONG KONG, CHEAPER CHINESE WAGE COSTS AND, IN SOME CASES, THE HIGHER PRODUCTIVITY OF THE CHINESE WORKFORCE, AN INCREASING NUMBER OF FACTORIES WERE RELOCATING TO THE DELTA. ANY CHECK IN ECONOMIC GROWTH COULD CREATE A PROBLEM FOR HONG KONG.

HONG

4. MEMBERS SAID THAT, RIGHTLY OR WRONGLY, PEOPLE IN HONG KONG HAD RECENTLY BECOME SUSPICIOUS ABOUT THE DEPTH OF HMG'S COMMITMENT TO HONG KONG. PEOPLE WERE ALL TOO READY TO BELIEVE THAT HMG WAS NOT TAKING HONG KONG'S PROBLEMS SUFFICIENTLY SERIOUSLY AND SYMPATHET-

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