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FROM: I C Orr, Far Eastern Department office approved for the visit to

DATE:

20 February 1985

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Dr Wilson

VISIT BY MR LUCE TO CHINA AND HONG KONG

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1. What arrangements should be made for Mr Luce to visit China and Hong Kong?

RECOMMENDATION

2.

I recommmend that Mr Luce should pay a visit of some 10 days this autumn. 16 September would be a suitable departure date.

HKD concur.

BACKGROUND AND ARGUMENT

3. Mr Luce had originally hoped to visit China and Hong Kong in the first half of 1985 but other events (Lord Young's visit later this month and Premier Zhao's visit to the UK in June) made this timing inappropriate. A visit in the autumn would be acceptable A, B to Sir Richard Evans and the Governor (their teleletters of 5 and

6 February to Dr Wilson). This would also come usefully between. the Secretary of State's last visit (with the Prime Minister) in December 1984 and his next likely one (in autumn 1986) accompany- ing The Queen).

4. The purpose of the visit would be to maintain close ministerial links with China. We need the best possible political relationship for implementing the Joint Declaration on Hong Kong and for deriving political and commercial benefits for the UK in its relations with China. Following Premier Zhao's visit there should be a good range of bilateral topics to discuss. It would also be extremely useful for the Minister to learn at first hand of the progress of Chinese urban and industrial reforms.

5.

This would also be the first visit to China and Hong Kong by an FCO Minister following ratification of the Joint Declaration and the establishment of the Joint Liaison Group. EXCO's interest in FCO ministerial contacts with China remains high. The visit could therefore start with two days in Hong Kong, followed by Peking and travel to other places in China (almost certainly including Shanghai to visit the new Consulate-General). A final day in Hong Kong on the way back might be necessary in the light of issues current at the time.

6. On present plans, there would be no other ministerial absences during the period suggested.

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LCONFIDENTIAL

I C Orr

Far Eastern Department

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