TNAG-2179-FCO40-3116-Hong-Kong-nationality-international-support-1990 — Page 132

CONFIDENTIAL

CALL ON PUS BY SECRETARY-GENERAL, MALAYSIAN MFA

FCO: 9 MARCH

Points to Make

Hong Kong

International Support

Very concerned about the exodus of talent from Hong Kong. Our nationality package is designed to help stem this outflow.

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Impact of our nationality package would be enhanced if other countries followed our lead and took measures with a similar aim, no

matter how limited.

International community as a whole has a stake in Hong Kong's continued prosperity and stability. Hope Malaysia will do all it can to bolster confidence, and help keep Hong Kong the important international and regional economic centre that it is.

Democracy/Bill of Rights

Our decision to introduce 18 directly elected seats in 1991 and provision in final draft of Basic Law for 20 in 1997 provides for continuous development of Hong Kong's political system.

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Pace not as fast as we would like. Should continue to press China

for further changes.

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Overall reaction in Hong Kong one of relief that confrontation with China has been avoided (helpful OMELCO statement, Hang Seng index rise, Chinese language press favourable).

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Basic Law final draft published in February on the whole, an acceptable reflection of Joint Declaration although we would have

FAYANI

CONFIDENTIAL