CONFIDENTIAL
consideration to ways of promoting confidence in Hong Kong. These include encouraging the establishment of a Hong Kong Economic and Trade office in Toronto; negotiating a network of bilateral agreements with Hong Kong in various fields (eg a mutual legal assistance treaty and an investment promotion
agreement), encouraging exchanges of civil servants; and
supporting Hong Kong's participation in international fora.
Nationality
4.
On the nationality issue, however, Canadian Ministers
have made clear that they will not be able to introduce
measures comparable to our own because this would run
counter to the principle of universality of application on
which Canadian nationality legislation is based. But they have indicated privately that they are willing to help by interpreting their immigration rules as flexibly as
possible.
Hong Kong Economic and Trade Office
5. In order to further promote and develop Hong Kong's economic and trade relations with Canada, the Hong Kong
Government would like to establish a free-standing Economic
and Trade Office in Toronto. Hong Kong has already set up
separate offices in Tokyo, Geneva and Brussels (in addition
to its 3 offices in the United States). One of the main purposes of establishing these offices is to underline Hong Kong's autonomy in economic and trade matters.
6. Work has been underway for some time on the drafting of the necessary Canadian legislation which will permit the
establishment of a Hong Kong Economic and Trade Office in
Toronto with the equivalent of consular privileges and
immunities. We understand that the draft legislation is
nearly ready but there appears to be some delay within the
bureaucracy in Ottawa. The Government drafters are now
being pressed by the Department of External Affairs to focus
on the matter as a matter of priority, particularly as the Canadian Finance Minister (Wilson) will be visiting Hong
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