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HONG KONG REMAIN STABLE AND PROSPEROUS.
MCLAREN THEN DECRIBED THE RECENT DECISIONS ON THE DEVELOPMENT OF DEMOCRACY IN HONG
KONG, AND THE REASONS WHICH HAD LED MINISTERS TO CONCLUDE THAT IT WAS WELL TO REACH AN UNDERSTANDING WITH THE CHINESE COVERING
ELECTIONS BEFORE AND AFTER 1997.
8.
WENSLEY SAID AUSTRALIA APPRECIATED THE PROBLEMS WE AND HONG
KONG FACED. THE AUSTRALIANS HAD MAJOR INTERESTS IN HONG KONG
10,000 CITIZENS AND 300 COMPANIES. HONG KONG WAS AUSTRALIA'S FOURTH LARGEST MARKET FOR MANUFACTURED EXPORTS, THEIR THIRD LARGEST SOURCE OF MIGRANTS AND THEIR LARGEST SOURCE OF BUSINESS MIGRANTS. AUSTRALIA WAS SENSITIVE TO THE APPARENT CONTRADICTION BETWEEN ATTRACTING HONG KONG'S HUMAN RESOURCES WHILST TRYING TO
HELP MAINTAIN CONFIDENCE IN THE TERRITORY. THIS ASPECT WOULD BE
COVERED IN THE POLICY REVIEW.
9.
ON THE BRITISH GOVERNMENT'S NATIONALITY PACKAGE, MCLAREN SAID THAT DETAILED WORK WAS PROCEEDING WITH THE AIM, WHICH MIGHT PROVE OVER AMBITIOUS, OF INTRODUCING THE PACKAGE BY EASTER. PROGRESS THEREAFTER WOULD DEPEND IN LARGE PART ON THE LEVEL OF PARLIAMENTARY OPPOSITION. IN THE MEANTIME WE WANTED TO ENCOURAGE OTHER COUNTRIES, SUCH AS AUSTRALIA, TO CONSIDER SIMILAR WAYS OF BOLSTERING CONFIDENCE IN HONG KONG. WENSLEY REPLIED THAT THERE WAS RESISTANCE IN CANBERRA, ESPECIALLY FROM THE IMMIGRATION DEPARTMENT, TO ANY SPECIAL SCHEME FOR HONG KONG ON THE GROUND THAT IT WOULD CREATE A PRECEDENT. MCLAREN SAID THE UNIQUE CIRCUMSTANCES IN HONG KONG DEMANDED A UNIQUE SOLUTION. WE HOPED THAT FRIENDLY COUNTRIES WITH INTERESTS IN HONG KONG COULD SHOW SOME IMAGINATION IN THEIR APPROACH TO THE PROBLEMS. WENSLEY UNDERTOOK TO CONVEY THIS POINT, ADDING THAT AUSTRALIA HAD DOUBTS ABOUT THE PRACTICALITY OF A DELAYED ENTRY SCHEME. WENSLEY ASKED ABOUT THE RESPONSE OF OTHER FRIENDLY GOVERNMENTS AND THE CHINESE. MCLAREN SAID THAT WE HAD HAD A MIXED RESPONSE TO OUR REPRESENTATION. AUSTRALIA, CANADA AND THE USA WERE OF PARTICULAR IMPORTANCE BECAUSE 95 PERCENT OF HONG KONG EMIGRANTS LOOKED TO THESE COUNTRIES. WE UNDERSTOOD THE DIFFICULTIES IN GIVING PASSPORTS TO PEOPLE WHO HAD NO EARLY INTENTION OF TRANSFERRING THEIR RESIDENCE, BUT SOMETHING OF THIS KIND WAS NEEDED TO GIVE PEOPLE THE CONFIDENCE TO STAY. AS FOR THE CHINESE THEY HAD NOT PREVIOUSLY SHOWN NERVOUSNESS OVER THE QUESTION OF A NATIONALITY PACKAGE, BUT WHEN THEY SAW THE EXTENT OF WHAT HMG WERE PROPOSING THEY HAD DENOUNCED IT. IT REMAINED TO BE SEEN HOW DIFFICULT THEY WOULD BE IN PRACTICE. THE LIMITATION ON THE NUMBER OF FOREIGN PASSPORT-HOLDERS IN THE POST 1997 LEGISLATURE WAS ONE CONSEQUENCE
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