CONFIDENTIAL

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Governor will be aware, there is a sharp conflict between Hong Kong's interests and those of an important sector of the British economy. We are not responsible for the behaviour of Mr Tran and deplore many of the techniques he has employed (eg, his tendency to negotiate by press conference). If the Governor wishes to enter into detailed discussions, I suggest he should be

Turde referred to the Department of

who are the lead department

in Whitehall on MFA topics.

If the Governor raises air services agreements, the Minister may care to point out that we have genuinely tried to

strike a fair balance between CPA and BA. As far as we are aware, Gulf Air have not yet retaliated against CPA for our refusal to grant them reciprocal rights; the Minister can repeat the assurance already given to the Governor that, if Gulf Air do retaliate, we shall do our utmost to protect CPA's rights which

are enshrined in a binding international agreement.

(b)

Parliamentary Interest

We

In one way and another, Parliament takes a considerable interest in Hong Kong. No other departments in the FCO have to deal with as many PQs as Hong Kong and General Department. also receive a steady stream of letters from MPs pursuing problems raised by constituents with friends or relations in Hong Kong, or by people in Hong Kong who have written to them. Many MPs also visit Hong Kong either on their own initiative or as guests of the Hong Kong Government. One MP, Mr Robert Parry, who takes a special interest in Hong Kong (probably because of the number of Hong Kong Chinese living in his Liverpool constituency), has taken to spending several weeks in Hong Kong during each summer recess, in the course of which he interests himself in all aspects of the

administration of the Colony.

The Hong Kong Government generally adopt an open and forth- coming attitude towards these manifestations of Parliamentary interest. They are only too happy to lay on programmes for visiting MPs. They reply promptly and invariably helpfully to requests for information to answer PQs and MPs' letters.

But the

/Governor

CONFIDENTIAL

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