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13124u MDHIAN 6230
MODERN EQUIPMENT SUCH AS WATER CANNON, SHIELDS AND ROAD BLOCKS. LAST YEAR CHINA HAD NOT BEEN PREPARED FOR WHAT HAPPENED. BEFORE JUNE, MOST DEMONSTRATIONS HAD BEEN ORGANISED AND CHINA'S INEXPERIENCE IN HANDLING SUCH A LARGE UNRULY CROWD HAD BEEN SHOWN UP. THE EAST EUROPEAN COUNTRIES USED TO BE ''FRIENDLY'' AND NOW THE SPEED OF DEVELOPMENT THERE WAS ASTONISHING. THERE WAS INSTABILITY IN THE USSR. CHINA HAD A CLEAR CUT APPROACH IN RELATION TO OTHER COUNTRIES. HE HOPED THE SITUATION WOULD IMPROVE SOON. LI THEN ASKED WHETHER LORD YOUNG HAD ANY QUESTIONS TO PUT OR ANY MESSAGES TO PASS TO THE CHINESE SIDE.
4. LORD YOUNG, MENTIONING HIS EARLIER VISITS TO CHINA, EXPRESSED HIS SATISFACTION AT THE NUMBER OF PROJECTS IN WHICH COOPERATION BETWEEN THE UK AND CHINA HAD BEEN DEVELOPING. TRADE HAD BEEN INTERRUPTED BETWEEN CHINA AND BRITAIN DURING THE NEGOTIATIONS LEADING UP TO THE SIGNATURE OF THE HONG KONG JOINT DECLARATION. HE DID NOT WANT TO SEE DISRUPTION OF TRADE IN FUTURE. PLEASURE TO LEARN THAT THE PROJECT FOR THE BEIJING METRO WAS TO GO AHEAD WITH A BRITISH COMPANY. IN EXPRESSING THE HOPE THAT WE COULD RESTORE BILATERAL RELATIONS TO WHAT THEY HAD BEEN BEFORE LAST APRIL, LORD YOUNG SAID THAT HE WOULD LIKE TO MENTION TWO PARTICULAR AREAS OF CONCERN, BOTH RELATING TO HONG KONG.
5. FIRST, LORD YOUNG WISHED TO MAKE CLEAR THE BRITISH SENSE OF RESPONSIBILITY TO HAND OVER A PROSPEROUS HONG KONG TO CHINA IN 1997. IT WAS AN IMPORTANT TERRITORY, BEING THE 11TH LARGEST TRADING REGION IN THE WORLD. IN TIME, IT WOULD BE A GREAT HELP TO GUANGDONG IN THE PROCESS OF MODERNISING THE ECONOMY. BUT THERE HAD BEEN A LOSS OF CONFIDENCE AS A RESULT OF WHAT HAPPENED IN PEKING LAST YEAR. THERE WAS A DISTURBING TENDENCY FOR PEOPLE VITAL TO HONG KONG'S ECONOMY TO LEAVE HONG KONG FOR OTHER COUNTRIES SUCH AS AUSTRALIA, THE UNITED STATES AND CANADA.
THE UNITED STATES AND CANADA. WE WERE CONCERNED
TO MAKE SURE THAT KEY, MIDDLE RANKING PEOPLE STAYED IN HONG KONG. WE HAD THEREFORE INTRODUCED THE NATIONALITY PACKAGE, BUT HE FEARED ITS PURPOSE MIGHT HAVE BEEN MISUNDERSTOOD IN PEKING. THE PROPOSAL WAS THAT UP TO 50,000 FAMILIES MIGHT BE GRANTED FULL BRITISH PASSPORTS. THE NORMAL WAY FOR PEOPLE TO QUALIFY FOR FULL PASSPORTS WAS FOR THEM TO LEAVE THEIR PLACE OF ORIGIN AND LIVE FOR A QUALIFYING PERIOD IN THE NEW COUNTRY. THE BRITISH GOVERNMENT HAD SAID THAT PEOPLE WANTING A BRITISH PASSPORT HAD TO QUALIFY BY STAYING IN HONG KONG FOR AT LEAST FOUR YEARS. WE HAD DONE THIS BECAUSE WE WANTED TO USE THE NEXT FEW YEARS AS A PERIOD IN WHICH THE TWO GOVERNMENTS COULD WORK TOWARDS RESTORING CONFIDENCE IN HONG KONG AND PERSUADING PEOPLE TO STAY. OUR ANXIETY WAS THAT
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