X

61772

Mr Hy

Hm, HI

HKD

CONFIDENTIAL

010/

In Rank.

10

да

SLATED6x

Cr1372

Y K Pao

The Secretary of State had breakfast with Y K Pao today. No official was present.

Y K Pao did not mention airlines, and nor did the Secretary of State.

Y K Pao said he thought British trade prospects in China should be helped by the difficulties Japan was having at present in that market. He referred to a recent decision in Japan in favour of Taiwan, which had upset Peking.

Y K Pao suggested that the Secretary of State might visit Hong Kong. The Secretary of State gave no commitment.

Finally Y K Pao asked whether any arrangements were being made to welcome the first batch of students coming here under his auspices. Please advise and if appropriate submit a short draft letter from the Secretary of State to Y K Pao.

16 July 1987

CC:

PS/Lord Glenarthur

Mr Gillmore

Mr McLaren

Auton (16

(R N Culshaw)

CONFIDENTIAL

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