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The Rt. Hon. The Lord Young of Graffham

14th July 1987

As far as investment is concerned Simon Murray and I are under constant pressure from Mr Li to find a really major investment opportunity for the Group here in the U.K. Our approach to Pearson's came to nothing because the Pearson family did not want a powerful outsider, and Li believes in coming in only. where he is welcome, but we are looking hard for something of similar size.

After the visit I would like to have a word with you at leisure about how we can strengthen Li's links with the U.K. He is without doubt going to be one of the key players in Hong Kong on the trade and finance (and inevitably also political) scenes both before and after the Chinese takeover in 1997. At present he finds, or thinks he finds, more welcome from the Canadians (and even the Americans) than from the British; Simon Murray and I are trying to correct this impression.

He is someone we need to tie to the British interest.

During his visit he will be seeing inter alia

the Prime Minister (with Lord McAlpine of West Green),

Lord Whitelaw, Lord Glenarthur and Tim Renton.

Rhin Dower

(Lord Derwent )

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