:

RESTRICTED

2.

4. In her third sentence Miss Notcutt mentions that Mr Heseltine

plans to visit Hong Kong, and possibly Japan, on the return

journey. CRE/DTI tell us they were not consulted before Miss

Notcutt's letter was written. Neither we nor the Governor had

previously had any indication of Mr Heseltine's wish to go to

Hong Kong. HK & IOD consider that there might be some advantage

in a visit to Hong Kong by Mr Heseltine. The Governor could take

the opportunity of discussing with him the question of traffic

rights for SAS and the Hong Kong Register of Shipping, if these

matters are then still outstanding. The Governor Hong Kong would

in any case need to be consulted first.

J

5. As regards Japan, ISED recommended on 16 January (copy of

submission attached) that we should not press for Mr Heseltine

to go to Tokyo after his visit to Teking, for reasons set out in

paragraphs 2-4 of the submission. It thus scems best to postpone

a decision on this until the position is clearer.

6.

I therefore recommend:

a) that the Secretary of State should agree to Mr Heseltine's

proposal to vinit Chine;

b) that consideration of Mr Heseltine's proposed visit to

be deferred until the position is clearer;

c) that we consult the Govemor about a visit to Hong Kong.

I submit a draft letter for the Private Secretary's signature and

a draft telegram to long Kong.

7.

HK & IOD concur.

J

17 January 1973

CC

Mr CROWSON HK+IOD

MR Crompton

Far Eastern Department

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