CONFIDENTIAL

Two

from a less` conventional background. possibilities were discussed: Dr Chen, an

economist with the Hong Kong Chinese University, and Mr Chan, who is a Trade Unionist.

Details

of both these possible candidates have already been passed to the Governor.

d. The Economic value of Hong Kong to Britain

It was agreed that further efforts should be made to set a figure on the economic benefit of Hong Kong to the United Kingdom. The main difficulty had arisen over defining the value of Kai Tak.

Mr Cortazzi said he would be prepared if necessary to write to Mr John Steele in the Department of Trade with a view to reaching agreement on the criteria to be used in trying to assess the value of the airport to the UK.

e.

British exports to Hong Kong

It was agreed that this question had an important political dimension which should not be overlooked. Note was taken of the view of the Chairman of the Hong Kong Trade Advisory Group that both the British Trade Commission in Hong Kong and the Department of Trade in London should assign extra staff to work on promoting British exports to Hong Kong. There was agreement on the importance of maintaining the present upward trend of British exports to Hong Kong. More specifically, concern was expressed over the possibility that ICI might not win the contract to construct an explosives plant on Stonecutters Island. Mr Cortazzi asked to be informed of this decision as soon as it had been made. (Comment: the contract was in the event awarded to du Pont.)

f. Education

It was noted that approval had now been given

CONFIDENTIAL

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