TNAG-2193-FCO40-3130-Hong-Kong-nationality-package-1990 — Page 119

TAYAAK

Bowen Wells Esq MP

House of Commons

London SW1A OAA

Mr Paul, HID

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The Scarton & State is seeing to wells

1 on 13 March. Please include his letter i the briefing. We PS/MI MAUGen

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Mayden

Private Secretary

I submit a draft reply.

after the meety AR Panc

AR Paul

8 March 1990

HONG KONG

Thank you for your letter of 16 February to David Waddington and me about our decision to grant British citizenship to certain

people in Hong Kong.

I do not accept that our policy is undermining confidence in Hong Kong. The fact is that the stability and prosperity of the territory are already under threat as a result of the emigration of people vital to Hong Kong's economy and administration. The effects of this trend are likely to be increasingly felt in the next few years. It is therefore essential that we take steps now to give these key people the confidence they need to remain in Hong Kong.

Nor do I accept that our scheme reflects a lack of trust in the Chinese Government, and their intention to abide by the Joint Declaration. The package is not aimed against China and will not damage Chinese interests. Under the Agreement, we have an obligation to maintain the prosperity and social stability of Hong Kong. This is precisely what our package is designed to achieve. China has a huge stake both economic and political continuing success of Hong Kong. It is very much in China's

interests to make the Joint Declaration work.

in the

You suggest that the scheme will be divisive. We are aiming to minimise this: we have repeatedly made clear that the scheme will not focus exclusively on the rich or the powerful, but will be based on merit and will concentrate on the value of the individual's service to Hong Kong.