TNAG-2179-FCO40-3116-Hong-Kong-nationality-international-support-1990 — Page 92

E

BACKGROUND

CONFIDENTIAL

References: A.

Hong Kong telno 743;

B.

Bonn telno 259;

C.

FCO telno 32 to BTC Hong Kong.

HONG KONG

1. West German trade with Hong Kong is growing rapidly. The West

Germans have already overtaken the UK in terms of sales to Hong Kong

and are drawing rapidly away. FRG have a particular interest in ensuring that Hong Kong remains prosperous.

2.

Following the announcement of our nationality package on

20 December the Embassy in Bonn (including Sir C Mallaby) have urged

the Federal Government to follow our lead in offering comparable

assurances. The Federal Government have also been under pressure

from German firms in Hong Kong and have been giving serious

consideration to what they could do to help.

3.

It is unlikely that the Federal Government will be prepared to

change the naturalisation procedures which require 11 years

residence and the ability to speak German. But the Auswaertiges Amt

and the Interior Ministry are considering the idea of giving key

personnel employed by German firms in Hong Kong approval to

establish residence in the FRG, subject to guarantee from their

company of continued employment and support. Those concerned would

eventually be able to apply for naturalisation in the normal way. It is estimated that such a scheme might cover up to 500 people,

including dependants. Discussion of this proposal is taking time

because of the need to consult the Federal Laender.

4. The press speculation on international support came at an

unfortunate time but the publicity was welcomed in Hong Kong. We

have had to say that it is a garbled account. It would be premature

to make any categorical announcement at this time.

Hong Kong Department

FAYANJ (2)