MELABV(3)
New Lease
CONFIDENTIAL
Understand that a couple of months ago you floated idea of HMG
leasing Hong Kong from China under a management contract. Can see
theoretical attraction of this idea. But we have no reason to
suppose that the Chinese would entertain such a deal.
know what reaction you have had from Peking.
Interested to
Democracy
Opinions in Hong Kong clearly evolving. But although there
appears to be general consensus in favour of faster rate of
democratisation, no clear view has yet emerged.
Dr Sohmen's views on pace of democratisation?
Assessment of
likelihood of consensus emerging in community as a whole?
Would an early announcement of our intention for 1991 have
positive influence on outcome of Basic Law? Or is it more likely to
have opposite effect by making it impossible for Chinese to appear to be responding to British pressure?
Vietnamese boat people
Acutely aware of burden imposed on Hong Kong by Vietnamese boat
people problem. Hong Kong people understandably impatient to see
concrete results.
Some progress has been made. International community has already agreed to resettle all those with refugee status within next 3
years. Also making progress in securing acceptance of idea of
mandatory repatriation for non-refugees. Clear that voluntary repatriation alone cannot provide comprehensive solution to
problem.
Moving as fast as we can. But do not want to move precipitately and bring about international reaction which would kill new policy
CONFIDENTIAL
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