RESTRICTED.

Mr. Laird.

Reference......

will (25

Japanese involvememt in Hong Kong.

You may be interested to see the attached latter to me

from Mark Goodfellow, the British Trade Commissioner in Hong Kong.

2.

Evidently the British Trade Commission in Hong Kong is

exercised about the hold which Japan is getting in the Colony. You will recall that Blackwell, the Senior Trade Commissioner,

referred to this in his letter of 24 November to Toms of DTI

at (20). Not only was Blackwell concerned about the effect on

British commercial standing in Hong Kong if the underground

railway contract goes to Japan but he was also worried about the

reaction of the CPG to the Colony falling into "the Japanese

economic sphere of influence".

3. Goodfellow suggests that we should ask the Hong Kong

Government for a copy of the document prepared by the Commerce

and Industry Department on Japanese involvement. I do not see

how we

can ask for this.

Mr. Kinment 16/17.

Jokimea

G.F.Kinnear

14.12.70

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