CONFIDENTIAL

to promote further joint

ven tures

in China. BTC

advised

the

businessman that he should put

an y

queries on

political

aspects to the Hong Kong Government.

6. Hong Kong have yet to be approached by the businessman or

NCNA. If they are, they propose to say that:

(a)

(b)

(c)

NCNA's (or Kowin's) activities inside China are of no

interest to the Hong Kong Government;

Commercial deals in Hong Kong are commercial decision s

for the two parties; and

The

establishment

and conduct of commercial concerns an d

activities in Hong Kong must comply with the laws of Hong

Kong.

in a

They would then take the opportunity to warn NCNA that

commercial operation in Hong Kong they are not exempt from

the laws of Hong Kong; and that if NCNA

officials find

themselves in difficulty in Hong Kong as a result of their

commercial activities, the Government will not be able to help

them.

ARGUMENT

if they are approached by

7. I share Hong Kong's view that,

either party to the prospective joint venture, then have to take a view, they should take the

sound a warning note about the risks NC NA

entering into such undertakings.

since they will

opportunity to

are running in

The line proposed does not

go as far as that previously suggested in May, in that neither

the question of NCNA's freedom to engage in commercial

activities in Hong Kong, nor that of NCNA immunities, will be

raised directly by Hong Kong.

8. Peking concur with the line that Hong Kong propose to

I agree with the live proposed.

2. Tel.

for despelen.

لمدير

لسله

Please seperated to lett 24 2015-pos kam

July-

A C Galsworthy

Hong Kong Department

evidence that went are or are Nopory, and willy ovaca

f

subsidies or the equivalent. 25/7

CONFIDENTIAL

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