CONFIDENTIAL
CALL ON PUS BY MR REID NORMAN, CANADIAN UNDER SECRETARY FOR FOREIGN AFFAIRS, FRIDAY 3 DECEMBER
HONG KONG
Background
1.
Canada has long-standing trade and investment ties with Hong Kong. Two way trade between Canada and Hong Kong is over £1 billion annually. Canada is Hong Kong's ninth largest market for domestic exports and tenth largest market for re-exports (from China). Hong Kong is Canada's fifth most important trading partner in Asia. There is also a large and growing Hong Kong Chinese population in Canada. During the past two years, approximately 30,000 Canadian immigrant visas were issued annually to Hong Kong residents. Canada therefore has a close interest in Hong Kong's economic success before and after 1997.
2.
The previous Canadian Administration strongly supported the Governor's proposals. When Mr Clark, former Minister for Constitutional Affairs, visited China last March he raised Hong Kong with Qian Qichen and Li Peng and stressed Canadian interest in the success of the "one country, two systems" concept.
3. Talks with China on Hong Kong's electoral arrangements have dragged on for 17 Rounds since April. As time began to run out, we explored a Chinese proposal for an interim agreement. This would only have worked if it had enabled us to legislate on all the longer lead-time items, thereby leaving more time to discuss the rest: which are also, as it happens, the more difficult. But the Chinese side dug their heels in over inclusion of one of the elements: the voting method to be used in the Legislative Council. Chris Patten and the Secretary of State concluded that it was essential for both practical and political reasons to have this as part of the interim package, and to get the interim package to LegCo before the Christmas recess. Chris Patten therefore announced on 2 December that he will be bringing forward the legislation. The Secretary of State gave the Chinese Foreign Minister advance notice. He emphasised that legislating would gain us a little more time and underlined our wish to carry on talking about the more contentious issues. We still await the Chinese reaction. But it is likely to be to claim that we have made further talks impossible.
bgnd.canada.NAT
JEB
CONFIDENTIAL
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