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CONFIDENTIAL

CALL BY SIR Y K KAN ON 14 JANUARY

1.

Minister

HRIOD

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Sir Yuet-Keung Kan (biographical note attached) is one of

the leading members of Hong Kong's Executive Council. Mr Royle

recently suggested within the Office, however, that his term of

(He knows nothing of this). office should not be renewed when it expires in July 1974. His

present visit to the UK is in connection with a tour of Eastern

Europe which he has undertaken for the Hong Kong Trade Development

Council (TDC).

2.

He is an activist who tends to take an extreme view in

bilateral issues between Hong Kong and the United Kingdom.

We

believe that he took a leading part in Executive Council's recent

decision to negotiate the Mass Transit contract only with the

Japanese.

3.

He discussed the question of the death penalty with the

Secretary of State when he was in the UK in June last year. A

copy of our telegram reporting this interview is attached together

with a brief on recent developments.

4.

At the moment he is mostly concerned about Hong Kong's

position as a result of the UK's alignment with the EEC's

Generalised Scheme of Preferences. A brief on this subject is

attached. short briefs are also attached on Sterling; the Defence

Contribution; and the Mass Transit Scheme; together with a copy

of the steering brief for the Frime Minister's postponed visit to

China which covers other subjects which Sir Y K Kan may, but is less

likely to, raise.

CONFIDENTIAL

15.

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