TNAG-2240-FCO40-3219-Future-of-Hong-Kong-Royal-Navy-presence-1991 — Page 51

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16 Oct 91

Sec (0)(C) Mr Howard

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PS/Minister (AF)

PSO/CDS

MA/CGS

PS/DUS (F)

ACDS (0)

AUS (C)

AUS (GF)

FCO Hong Kong Department

CONFIDENTIAL.

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THICB 063/1

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3 0 0 1991

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OFFICE CALL BY GOVERNOR OF HONG KONG

Sir David Wilson visited MOD to meet senior officials on 15 October.

In He was accompanied by his Private Secretary. addition to PUS, CDS, CGS, DUS(F), ACDS (O), AUS (C), AUS (GF), Mr Ricketts (FCO) and you were present.

2.

and the

The Governor described the economic and political background. The economic picture was bright. Real growth was running at a rate of 4% per annum; construction work was proceeding apace, in spite of the proximity of 1997; impressive economic growth in South China was largely financed by The political dimension was more complex.

There were Hong Kong. understandable worries about 1997 and there was some criticism of the UK Government. The impact of Tiananmen Square was receding but confidence about China in Hong Kong had yet to recover to pre-June 1989 levels. The signing of the agreement on the new airport had improved matters but the Governor foresaw increasing Chinese influence, not all of it legitimate, in Hong Kong's affairs.

3. There had been elections to one third of the seats in the Legislative Assembly; the United Democrats had done well at the expense of those candidates who were representative of big business. The Governor expected the United Democrats to seize upon a number of issues in the Legislative Assembly which would affect the United Kingdom - for example the Defence Costs Agreement (DCA) and Vietnamese Boat People (VBP). Any attempt to change the ratio set out in the DCA would cause considerable difficulty.

CONFIDENTIAL