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Mr Morrice

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Mr Williamson J. HEI 184|6.

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HONG KONG COMMERCIAL QUESTIONS

› Beir

Reference..

CART 23. ELMANKA

BEC, AY

Action T

33)

1. Mrs Gingell of GREAcalled on 31 March. She raised the following points:

a) Possible amalgamation of the Hong Kong Trade Advisory

Group (HKTAG) and the Sino-British Trade Council (SBTC). This had been raised by Mr Wilkes, Deputy Secretary in the DOT. CRE4's preliminary view was against the idea. What did we think? I said that, having discussed it with Mr Bray in the Hong Kong Government Office, I thought that this was the wrong time. We had now got British manufacturers and traders to focus on Hong Kong as a separate market. It would confuse them to subsume Hong Kong affairs in a China-oriented group. Moreover, there might be some political objections from people in Hong Kong who would be suspicious of being lumped together with China. Mrs Gingell said that for their part they thought a change would in fact lead to greater rather than less expense because the SBTC would probably try to get more staff. She intends to write to Mr March in Hong Kong about it. I do not know whether Mr Davies in FED would like to comment.

b) New Chairman of HKTAG.

Mr John Browne wants to retire at the end of this year. CRE4 favour Mr Jeremy Brown of Mathesons. Given that it is very difficult to find an industrialist with the interest and time to spare on Hong Kong, this seems a reasonable idea.

c) CAA decision on Air Services.

I said that we were looking seriously at this problem although it had not yet been decided what action should be taken by the FCO. However, I hoped that CRE4 would examine the implications for our trade with Hong Kong and let Mr Nott have their independent analysis. We, and the Hong Kong Government Office, could provide information on the strong reaction in commercial circles in Hong Kong. Mrs Gingell said that they would indeed look at this and took away a copy of the latest telex from Hong Kong about reactions.

31 March 1980

CC

Mr Davies FED

Mr Burges Watson TRED

R D Clift

Hong Kong and General Department

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