TNAG-1896-FCO40-2690-Calls-on-Francis-Maude--Minister-of-State-for-Foreign-and-Co-1989 — Page 39

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NOTE OF A MEETING BETWEEN MR MAUDE AND DR SOHMEN ON 23 OCTOBER 1989

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1.

Dr Sohmen congratulated Mr Maude on his recent visit to Hong

Kong.

He said that the visit had obviously gone well.

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2. Dr Sohmen began on the right of abode issue, He said that, speaking as Chairman of the General Chamber of Commerce, the Chamber

did not wish to pursue too forcefully right of abode for all BDTC citizens. The Chamber recognised the difficulties for Britain it

was simply impossible for millions to be given citizenship. Granting a smaller number would probably mean that not all the right groups would be targeted. For example, the leaders of business were likely to have other alternative destinations lined up. Therefore the nationality package was not a solution. However it was a good gesture and the General Chamber of Commerce would try to be positive

about it. Mr Maude said that clearly the intention was that the

package would have as big an impact as possible. It would thus

target those who were most valuable to Hong Kong This would

include civil servants but a very important group was also the

private sector. It was important to offer assurances to key people

in the private sector to stop the middle management haemorrhaging.

He hoped that the business community would adopt a positive and

responsible attitude to the scheme.

He

3. Dr Sohmen said that he was sure the business community were

realistic in their expectations and would welcome the scheme.

hoped it would have a positive effect but he noted that the

viability of Hong Kong did not depend on just a few key people but

on the confidence of the majority.

4. On the question of investment, Dr Sohmen said it was important

for Hong Kong to continue to be seen investing in new manufacturing

technology and also upgrading the service industries. He said that

the Chamber was working hard on countering any international

impression that Hong Kong was going down hill. He noted that seven

years was a long time in the investment cycle for Hong Kong.

5. Dr Sohmen said that one important factor in this was the

shortage of labour. The Chamber had decided that it was now