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4. I try to ensure that I have a sub-text whenever I visit Hong Kong, other than constitutional issues. On this occasion it was the environment, in connection with which I undertook a number of visits and briefings. This is an extremely important area for Hong Kong - the task involves cleaning up the mess of several decades local development as well as dealing with the results of the industrial explosion in South China. I had lunch with a number of British businessmen working in relevant
(and the British Council) who felt that the UK is missing out on huge opportunities for environmental protection work in the Pearl River Delta. I should like to discuss this further with Baroness Chalker at an early stage. More generally, I believe that local people welcome HMG's interest in issues, such as the environment, which are of direct relevance to their day-to-day lives.
5. I had two sessions with HMOCs: one formal meeting with the Chairman and another when I was (usefully, as it happened) doorstepped by some of the 'Young Turks! I think I was able to convince them that a little ground had been gained in the past year and that the Hong Kong Government and the FCO are fighting their cause robustly. We probably have a little breathing space before the Governor's next visit to London. Thereafter, HMOCS will want to lobby Parliament directly and perhaps take action locally: moderates are likely to be ousted from the Committee. I discussed this subject with the Governor at some length. His position is, understandably, unshakeable. There is no question of the Hong Kong Government payment towards any settlement, because LegCo sees this as essentially a British colonial problem and will flatly refuse to contribute to any solution. Chinese would also regard any such move as evidence of a British raid on Hong Kong coffers. The best I could come up with was to suggest that, with your agreement, I might contact OPD (K) colleagues bilaterally before the meeting on 1 July to canvass support for the Governor's stance. Meanwhile I have asked our officials to have a further informal try at seeing whether the Treasury have any flexibility at all.
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6. With LegCo, there was much interest in nationality questions in particular the planned replacement of BDTC with BN(0) passports; the status of the non-Chinese ethnic minority in Hong Kong after 1997; and the position of widows of ex-Servicemen. On all of these I was able to say that the Home Office was looking afresh at the issue and that they would take into account the views of the members of the LegCo Nationality Committee due to visit London next week. I cannot believe that it would be beyond our wit to devise a satisfactory administrative solution to the BN (0) passport problem in particular. I also hope, given the tiny numbers involved, that we can do something soon for the widows on humanitarian grounds.
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