TNAG-2918-FCO40-4193-The-internationalisation-issue--Hong-Kong-Department-paper---1993 — Page 18

CONFIDENTIAL

HMG's Position

3. Internationalisation is not a new concept. Hong Kong's economy is dependent as no other on links with the outside world.

Hong Kong's economic partners naturally take an interest in the

territory's future and in the arrangements we have negotiated

with China.

Our policy towards Hong Kong has also over the years

attracted close political attention (some of it critical) from eg

the US, Canada, Australia and Japan. We have kept friendly

countries briefed primarily to sustain confidence in Hong Kong,

but also because international interest provides one of few means of influencing Chinese behaviour.

4. The focus of our contacts with international partners has changed over the years since 1984. Initially we concentrated on explaining the Joint Declaration (JD). We have continued to brief a small group of friendly countries after each Joint Liaison Group (JLG) meeting. Following the events in Tiananmen Square we secured a supportive mention of Hong Kong in the CHOGM

communique from Kuala Lumpur in November 1989.

5.

In 1990 we put a lot of effort into gaining international

support for the Nationality package. (Some partners responded by

developing parallel schemes offering passports for Hong Kong .-people.) We have also consistently lobbied the Americans for

unconditional renewal of Most Favoured Nation status (MFN) for

China, in view of the damaging consequences for Hong Kong of failure to renew. Most recently, the international focus has

been on Mr Patten's proposals for broadening democracy. These have generated support, either public (US, Australia, Canada) or more private (Japan). We have encouraged friendly countries to speak privately to the Chinese, in support of our policies.

Chinese Fears

6. The Chinese have always been neuralgic about our exchanges with third parties. They seek to restrict international interest

internat.NAT

JEB

CONFIDENTIAL