CONFIDENTIAL

British Council

see what we might do within our existing programme.

are in touch with State Education Commission about this.

E.

1.

DRAGONAIR (if raised)

Pleased you are now serving Thailand on a regular basis.

(If asked about scheduled services for Dragonair to PRC)

Hope to resume talks with Chinese soon. HMG will continue to

support Dragonair's aspirations.

8.

(If asked about charter flights for Dragonair to Peking and

Shanghai)

9.

Decision on this is for Hong Kong Government.

(If asked about charter flights for Dragonair to London):

10. Director of Civil Aviation in Hong Kong has full responsibility for approving charter services. HMG not involved.

F.

SINO-BRITISH FRIENDSHIP SCHOLARSHIP SCHEME (if raised)

11. Pleased with progress. Pleased that reception Mr Patten gave

for first students on 17 September went well.

Go

ARMILLA PATROL PROTECTION FOR HONG KONG SHIPS (Defensive)

12. We cannot accept a sworn affidavit concerning British ownership

of any vessel. This would set a difficult precedent which could

embarrass us in other cases. No reflection on Sir Y K personally

H.

سم

NINGBO STEEL WORKS (Defensive)

13. We cannot provide an aid grant to support this very large

project. (II pressed). We have indicated to the Chinese government

that we are willing to explore other ways of expressing our support

on small scale. No response yet

CONFIDENTIAL

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