CONFIDENTIAL
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4.
The only section of the speech which needs to be drawn to
Ministers' attention relates to Hong Kong's relations with the UK,
including the nationality question. The text is attached. This is the first time that the Governor has included a specific passage on Hong Kong's relations with the UK. It brings out areas of difference between us (the sharing of the costs of Hong Kong's
defence and resettlement in the UK of Vietnamese refugees from Hong
Kong) to an extent that has not happened before. It also includes
a reiteration of the Governor's position on right of abode, which he has expressed publicly on a number of occasions, including to the Foreign Affairs Committee.
5. We have asked the Governor whether he might wish to reconsider
the inclusion of such a passage in this year's speech. He has
confirmed that he attaches considerable importance to this section
and would be very reluctant indeed to omit it. He has however made
some amendments, the effect of which is to tone down the passage.
These are incorporated in the attached text.
6.
The Governor's reasons for wishing to retain the passage are
as follows. Apart from the effect of events in June, one of the
features of the past year has been Hong Kong's difficult and
somewhat emotional relationship with the UK. The Governor feels that the point cannot be dodged. He points out that it is a
commonly held view in Hong Kong that the Hong Kong Government has its hands tied, in dealing both with Peking and London and is not sufficiently robust in defending Hong Kong's interests. That view
undermines the authority of the Hong Kong Government and does not
help Hong Kong. The Governor is therefore keen to make it clear that in practice Hong Kong does have a great deal of autonomy (a message for the Chinese as well as for the people of Hong Kong); that there is nothing unusual about interests occasionally being
divergent; and that when this happens the Hong Kong Government
argues Hong Kong's case robustly
1.
On reflection, I believe that the Governor is right to want to include a passage of this kind. The considerations are important
CONFIDENTIAL
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