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.
3.
After an intense battle lasting over four weeks, Sir Y Y K 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
future.
-
expression of confidence in Hong Kong and 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
inclusion in suitable occasions during the visit (eg a call by
Lord Young with prominent businessmen on Premier Zhao and/or a
social event).
for
5. Sir Y K has a specific and helpful interest in UK-China trade.
Following his meeting with the Prime Minister
the Prime Minister in November last year
he wrote to her about a Chinese proposal 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 YK 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,
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
last week from the Ministry of
The Ningbo project figured
delegation a
Metallurgy, led by a Vice Minister. largely in discussions and Sir Y K will doubtless wish
doubtless wish to brief the
Prime Minister on these.
CONFIDENTIAL