CONFIDENTIAL

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PP HONG KONG

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CONFIDENTIAL

1

FM FCO 111435Z NOV 82

TO PRIORITY HONG KONG

Hier

Hick 026/2

TELEGRAM NUMBER 945 OF 11 NOVEMBER

AND TO PRIORITY BTC HONG KONG

Пос. ра

1615/μ

тор

TOP COPY

сори

145

HOUSE OF COMMONS SELECT COMMITTEE ON INDUSTRY AND TRADE.

1. LORD BELSTEAD BRIEFED THE COMMITTEE ON THEIR VISIT ON 10

NOVEMBER. THE FOLLOWING POINTS CAME UP ON HONG KONG.

FUTURE OF HONG KONG.

2. LORD BELSTEAD EMPHASISED THE IMPORTANCE OF THE ACHIEVEMENT DURING THE PRIME MINISTER'S VISIT IN OBTAINING AGREEMENT ON

TALKS BASED ON A COMMON OBJECTIVE. THIS PROVIDED A GOOD BASIS, IN THE CONTEXT, OF OUR EXCELLENT RELATIONS WITH CHINA, TO WORK

OUT A SOLUTION TO A COMPLEX PROBLEM.

3. THE ONLY RELATED QUESTION WAS BY MR MARTIN STEVENS (C) WHO ASKED ABOUT PLANS FOR ECONOMIC ADJUSTMENT IN CHINA AND WHETHER THE PACE OF ECONOMIC CHANGE MIGHT RESULT IN CHINA ADOPTING A RELATIVELY FREE ENTERPRISE SYSTEM BEFORE 1997. HE WAS TOLD THAT, DESPITE SOME LIMITED MOVES BY CHINA, THERE WAS NO LIKELIHOOD OF THIS HAPPENING, CERTAINLY IN THE TIME-SCALE HE ENVISAGED.

MULTI-FIBRE ARRANGEMENT.

4.

MR IAN MIKARDO (LAB), MR ERIC COCKERAM (C), MR MCNALLY (SDP) AND MR MAXWELL-HYSLOP (C) ASKED WHY THE COMMUNITY, WITH UK AGREEMENT, WAS TAKING A TOUGH LINE WITH HONG KONG AND OTHER ASIAN COUNTRIES WITHOUT BEING EQUALLY TOUGH ON THE US. LORD BELSTEAD EXPLAINED THAT THE UK HAD MADE A SPECIAL POINT OF URGING THAT HONG KONG'S FREE ACCESS REGIME SHOULD BE RECOGNISED IN ANY

SETTLEMENT. THE UK HAD NOT BEEN ALONE IN AGREEING TO A TOUGH

MANDATE NOR WAS THIS DIRECTED EXCLUSIVELY AGAINST HONG KONG. THE MAIN REASON FOR THE ATTITUDE ADOPTED IN NEGOTIATION WITH THE ASIAN DOMINANTS WAS THAT THEIR PRODUCTS WERE LOW COST ACROSS

THE BOARD.

LIMITED

See/146

165

HKGD

FED

ECD (E)

PS/LORD BELSTEAD

EC Miss Smith PCCU.

CONFIDENTIAL

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