TNAG-2194-FCO40-3131-Hong-Kong-nationality-package-1990 — Page 21

prosperity which are the key to a successful transition in 1997.

The writers of the letter suggest that the Chinese authorities

will treat any Hong Kong Chinese with a British passport with

hostility. There is no evidence for this; moreover the Chinese

Nationality Law does provide for ethnic Chinese to renounce their

Chinese nationality in certain circumstances. The presumption that

beneficiaries of our scheme might be treated with hostility after

1997 can-not be squared with the provisions of the Joint

Declaration, which state that British and other foreign nationals

may continue to serve in, or be recruited to, all but a few top

posts in the future Hong Kong SAR Government.

I do not follow the logic of the assertion in the letter that

the Hong Kong Bill will reinforce uncertainty about the future

after 1997. It is a fact of life that, following the events in

China last June, confidence in Hong Kong is at a low ebb. Our

scheme is designed to tackle that problem. Far from undermining

confidence, it will bolster it. We are not signalling our lack of

confidence in the Joint Declaration; on the contrary we are faithfully implementing its provisions.

I do not believe that the scheme will create bitterness and

anxiety in the territory. We have devised the selection criteria in

as objective a way as possible, in order to ensure that people in

Hong Kong will see it as a merit based scheme and not one based on

wealth or influence. To the extent that it contributes to the

stability and prosperity of Hong Kong, it should benefit the

community as a whole, improving confidence and thereby easing the

emigration problem.

I agree with the writers of the letter that the key to

maintaining confidence in Hong Kong is the active cooperation of the

Chinese. Our handling of our recent decision about Hong Kong's

future political development recognises this fact. As far as the

Bill is concerned, we have taken pains to explain to the Chinese our

reasons for introducing it, and I believe that they will in time

come to accept it as a sincere contribution to the successful future

of the territory.

JONADF

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