CONFIDENTIAL
BACKGROUND: FUTURE OF HONG KONG
1. Sir Y K Pao
1984.
in
Y K Pao last called on the Prime Minister on 16 November
He attended the signature of the Hong Kong agreement Peking on 19 December as a guest of the Chinese Government.
2.
The Prime Minister is aware of the background on the Joint
Liaison Group.
He
3. After
intense battle lasting an
over four weeks, Sir
Sir Y K Pao
gained control of the Wheelock Marden Group in March this year. 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
-
takeover
This offer. 23% higher than the original has been seen as an expression of confidence in Hong Kong and its
future.
4. Sir Y K wrote to Lady Howe in January saying that he intended to
visit the UK
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
with Young
Zhao and/or
social event).
businessmen prominent
on Premier
a
5
Sir Y K has a specific and helpful interest in UK-China trade. Following his meeting with 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 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
the Ningbo and
Deputy Governor of Zhejiang
Mr province.
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.
6. ©
CONFIDENTIAL