TNAG-1899-FCO40-2697-Future-of-Hong-Kong-briefing-1989 — Page 63

COZAJP

НКВ оюн.

ра

PaRy 17/6

Miss Marson

Нивиянка

38

16 JUN199

BRIEF FOR CABINET

HONG KONG

Many thanks Atfund

ali.

-

Recent events have badly shaken confidence. Unsettled

population.

Smeres

Police had to use teargas against 300 demonstrators on 6 June.

Otherwise demonstrations have been remarkable restrained.

Run on Chinese controlled banks now apparently over.

Hong Kong index down 36%. But now rallying.

Nationality

Now overna

Mes

ли

or me")

Have already been working with Home Office on scope for greater flexibility. Governor of Hong Kong has sent us detailed proposals.

Events in China have inevitably affected nature and urgency of

problem. Only real assurance in present circumstances would be to

offer right of abode to all British nationals in Hong Kong. But

unrealistic.

Early announcement of selective measure to help Hong Kong people might be divisive and counter-productive.]

Bout People

Democracy

-Trouble in Chria likely to increase pressure to do something for

Hony Kory

bout people. Arrivals contine (harly 1200 on Monday

سل

Hong Kong opinion is evolving in favour of more rapid

democratisation.

OD this

afternoon.

-

Have been examining with Governor whether timetable for

introduction of representative government before 1997 can be speeded

up.

But risks involved in ignoring need to carry Chinese with us over

Basic Law.