CONFIDENTIAL
BACKGROUND: FUTURE OF HONG KONG
1.
Sir Y K Pao last called on the Prime Minister on 16 November
He attended the signature of the Hong Kong agreement in
Peking on 19 December as a guest of the Chinese Government.
1984.
2.
The Prime Minister is aware of the background on the Joint
Liaison Group.
After
over
3.
intense battle lasting an
K four weeks, Sir Y Pao
gained control of the Wheelock Marden Group in March this year. He
defeated Singapore based financier Mr Kheo Teck Puat. Sir Y K Pao's
final offer values the Wheelock Marden group at about Hong Kong
$2.5 billion 23% higher than the original takeover offer. This
has been seen as an expression of confidence in Hong Kong and
future.
its
4.
Sir Y K wrote to Lady Howe in January saying that he intended to
visit the UK in June during Premier Zhao's visit and would welcome
the chance of participating in it.
His name is being borne in mind
for inclusion in suitable occasions during the visit (eg a call by
Lord Young with prominent businessmen on Premier Zhao and/or a
social event).
5. Sir Y K has specific and helpful interest in UK-China trade.
Following his meeting with the Prime Minister in November last year
he wrote to her about Chinese proposal
a
to build a steel mill at
Ningbo on the East Coast of China. A consortium of UK companies led by Davy McKee has since been established to pursue the project, with
support from HMG.
Sir Y K has been closely involved and arranged
for Davy McKee to hold discussions in mid-April in Hong Kong with a
Vice Minister from the Chinese Ministry of Metallurgy, the Mayor of
Ningbo and the Deputy Governor of Zhejiang province. Mr Roger Kingdon, Chairman of Davy McKee, who accompanied Lord Young to China
has also entertained a delegation last week from the Ministry of
Metallurgy, led by a Vice Minister. The Ningbo project figured
largely in discussions and Sir Y K will doubtless wish to brief the
Prime Minister on these.
CONFIDENTIAL