TNAG-1747-FCO40-2466-Visit-by-Sir-Geoffrey-Howe--Secretary-of-State-for-Foreign-a-1988 — Page 199

PTAADF

CONFIDENTIAL

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SECRETARY OF STATE'S VISIT TO SWITZERLAND: 24-25 MARCH 1988

HONG KONG

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Objections

erectio 109713.

1. To indicate that Sino-British cooperation on Hong Kong is proceeding well, and to emphasise that international expressions of support sympathy are helpful for confidence.

2.

To ask the Swiss to make a new commitment for resettlement of Vietnamese refugees from Hong Kong.

Points to Make

1. Liaison with Chinese over Hong Kong going well at all levels.

Good understanding with him Recently met Wu Xueqian in London. constructive dialogue on constitutional development in Hong Kong,

and other issues.

2.

Hong Kong economy performing very well.

Growth last year

13.5%. Confidence remarkably good, but still fragile. International expressions of support always helpful.

Strength of

Hong Kong economy important in underpinning current optimistic mood in territory. Switzerland is important European economic partner.

3.

Welcome signature of separate Hong Kong/Switzerland Air

Services Agreement.

4.

Arrivals up

Hong Kong's refugee problem is getting worse. resettlement down. Our own resettlement effort considerable: 13,000 since 1975. Resettlement of a further 468 announced last year. Gesture of solidarity by Swiss by offering to take some more in 1988 would be most welcome.

CONFIDENTIAL