TNAG-1896-FCO40-2690-Calls-on-Francis-Maude--Minister-of-State-for-Foreign-and-Co-1989 — Page 127

HKB 026 125

RESTRICTED

ente

157/9

5

RECORD OF MEETING BETWEEN MR MAUDE AND THE HONG KONG COMMISSIONER IN

LONDON, 6 SEPTEMBER 1989

1. Mr Yaxley explained that the role of the London Office had changed in recent years. Its prime purpose used to be to look after

Hong Kong students studying in the United Kingdom and although there

were still 12,000 such students, this aspect of its work had decreased in importance. Its community work with Hong Kong Chinese people here had also decreased. Recently it had much increased its

lobbying role, both of Members of Parliament and of the press.

Another area being expanded was the commercial relations aspect,

which would especially need to be developed post 1997.

2. Mr Yaxley said that Hong Kong was getting over the trauma of

the events in China in early June. However the Vietnamese Boat People (VBP) issue was still pulling Hong Kong apart. He thought

that if no action was taken on involuntary repatriation by the end

of October then the Legislative Council would probably refuse to

vote funds or would pass a motion terminating the first asylum

policy. Mr Maude thought that such developments would be disastrous

for Hong Kong's international image, particularly at a time when Hong Kong was asking for commitments to resettle Hong Kong citizens

in th Armageddon scenario. HMG was determined to tackle the VBP

out we could not risk a non-voluntary repatriation exercise

ent wrong.

This would be the worst case scenario. Mr Yaxley

pri

whi

agreed.

3. Turning to the economy, Mr Maude noted that business

confidence in Hong Kong still seemed to be good. Mr Yaxley agreed

and commented that cross border crossings had stayed at the pre-June high levels. The gross national product estimate for 1989 had been

reduced from 6% to 5% (Mr Maude pointed out that in maturing

economies, such as Hong Kong's, growth rates would inevitably slow).

Mr Yaxley was more concerned about the effects of early June on China's ability to import and export goods. He considered that

these effects would only show up in later data.

RESTRICTED