00 FCOLN

FM HOKON TO FCOLN

0808552 DEC

GR$ 350

CONFIDENTIAL

FM HONG KONG

TO IMMEDIATE FCO

TELNO 4071

OF 080855Z DECEMBER 86

bay

YOUR TELNO 2771 : BN(0) FACILITATING TRAVEL TO THIRD COUNTRIES : CZECHOSLAVAKIA,

WE APOLOGISE FOR THE DELAY IN ANSWERING TUR. YOU CAUGHT US IN THE PROCESS OF HAVING ANOTHER LOOK AT OUR POLICY TOWARDS TRAVELLERS FROM THE SOYBLOCK, WE HAVE NOT (NOT) YET COMPLETED OUR REVIEW AND ARE UNLIKELY TO DO SO UNTIL NEXT MONTH.

2. OUR PRESENT POLICY IS TO AGREE TO THE ISSUE OF VISAS TO BUSINESSMEN FROM SOVBLOC COUNTIRES WHERE THERE IS LIKELY TO BE CONSIDERABLE ECONOMIC BENEFIT FOR HONG KONG. OUR YARDSTICK IS THAT A BUSINESS TRANSACTION OF AROUND HK DOLLARS 1 MILLION SHOULD BE INVOLVED. ALL OTHER APPLICATIONS THAT DO NOT FIT THIS CRITERION ARE REFUSED. WHAT WE ARE NOW LOOKING AT IS THE POSSIBILITY OF BEING A LITTLE MORE RELAXED IN RESPECT OF BUSINESSMEN, IN PARTICULAR BY ALLOWING IN DELEGATES FOR CONFERENCES AND TRADE FAIRS, THE NUMBERS ARE NOT EXCESSIVE. WE ARE ALSO THINKING OF ALLOWING LIMITED NUMBERS OF ACADEMICS TO ENTER FOR SEMINARS AND CONFERENCES.

PROVIDED

3. IN COMING TO A DECISION ON WHETHER OR NOT WE CAN RELAX OUR POSITION TWO FACTORS WILL BE PARTICULARLY IMPORTANT. THE FIRST IS THAT WE MUST NOT (NOT) INTRODUCE CHANGES THAT MIGHT ADVERSELY AFFECT OUR RELATIONS WITH CHINA. THE SECOND IS THAT WE MUST NOT (NOT) DO ANYTHING THAT MIGHT PREJUDICE OUR ACCESS TO HIGH TECHNOLOGY FROM THE COCOM COUNTRIES. AND IN THE LATTER CONTEXT THERE ARE. SIGNS THAT BUSINESSMEN HERE ARE BECOMING UNEASY ABOUT COCOM IN THE CONTEXT OF 1997. IN OTHER WORDS THEY ARE LIKELY TO BE MORE SENSITIVE NOW THAN THEY WERE TO ANY MOVES WE MAKE TOWARDS LIBERALISING OUR ATTITUDE TO SOVBLOC COUNTRIES. IF WE DO DECIDE IN PRINCIPLE TO INTRODUCE CHANGES, WE WILL BE SEEKING YOUR ADVICE ON BOTH ASPECTS.

4. MEANWHILE, IT IS DIFFICULT TO PROVIDE A SATISFACTORY DEFENSIVE BRIEF FOR PRAGUE. THE BEST WE CAN SUGGEST IS TO CONFIRM THAT THE HONG KONG GOVERNMENT DOES AGREE TO THE ISSUE OF VISAS FOR BUSINESSMEN FROM CZECHOSLAVAKIA ON A CASE BY CASE BASIS. BUT SUCH A RESPONSE COULD LEAD TO DIFFICULT SUPPLEMENTARY QUESTIONS. PRESUMABLY YOU HAVE SIMILAR PROBLEMS WITH SOVBLOCK COUNTRIES DO YOU HAVE A STANDARD LINE OF DEFENCE WHEN YOU ARE ACCUSED OF DE ING SELECTIVE IN THE ISSUE OF VISAS?

AKERS-JONES

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