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it is better that he should do this when he calls on Ministers and

officials at the Departments of Trade and Industry or if he calls on Mr Judd (who has asked to see the Governor if possible). The

brief on Problems in Anglo-Hong Kong Relations carries defensive points that can be used if the Governor complains that we have not

done enough to protect Hong Kong's interests in these negotiations.

Anglo/Hong Kong Trade✓

8. We are concerned about the public image of Hong Kong in

Britain. The Minister may wish to say that part of the bad image of Hong Kong held by many interested parties in Britain is due to the continuing adverse visible trade balance. Much of the growing protectionist feeling in Britain is due to this well-known deficit. We are very conscious of the efforts being made by the Governor to

stimulate British trading in Hong Kong (including his efforts on behalf of the Mass Transit Railway contracts in 1976 and his establishment of a group to stimulate British trade) and are most grateful for his endeavours. However, we do urge that the Governor and his Government should continue their efforts and, in particular, do the best they can to secure as many contracts for Britain during the coming months, particularly in the large projects such as the China Light and Power extension, the Mass Transit Railway extension and, if it comes about, the new Hong Kong airport. We believe that the best way to improve Hong Kong's image in Britain is to show that it has a growing and lively

market

impact for British trade.

DS Secondments to Hong Kong (Brief F) ↓

9. The Minister of State may wish to suggest to the Governor that we should now reconsider posting a senior Diplomatic Service Officer to Hong Kong to act as, e.g. a Chef de Cabinet to the

Governor.

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CONFIDENTIAL

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