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and could be counter-productive.

The only effective way of

achieving a more favourable image of the United Kingdom in Hong

Kong is the way we have been pursuing, to encourage Hong Kong

officials to accept that they themselves have a responsibility

for presenting the British case. They have not hitherto always

regarded this as their business. There have, however, been some

recent signs of a change. For example Mr Jordan, the Director of

Commerce and Industry, has put over our line on the Community's

GSP with some conviction. If we were to begin an independent

campaign from the Trade Commission, the Hong Kong Government would

at worst react against it; and at best sink back into the belief

that it is none of their business to defend Britain. We therefore

concluded that the best next step would be to remind the Governor

that we look to his officials to put the British case. I submit

a draft letter from Sir D Watson accordingly.

4.

The second question to which Sir P Reilly returns in his

letter of 4 December, concerns the length of Diplomatic Service

tour in Hong Kong. The PUS has already explained the position and

there does not seem any point in restating it.

5. All the other points except three in Sir P Reilly's original letter (sidelined in Flag B) have already been answered either by

the DTI or by us. The exceptions are the implied criticism of the

staff at Osaka, which is perhaps best left unanswered; the plea for

greater selectivity in the choice of Missions, which is for the

DTI;

and the need for new offices for the British Trade Commission

in Hong Kong. On the last point the PSA have decided that there are

insufficient grounds for changing offices in view of the cost

involved. Similarly they cannot agree that there should be a

/display centre.

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