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PROPOSE THAT THEY REFER TO SECTION 11, AND SAY THAT BY GIVING AN AUTHORIZATION REFERRING TO ''AGREEMENTS IN THE CULTURAL FIELD''

THE BRITISH SIDE ARE ONLY DOING WHAT THEY EXPECT THE CHINESE SIDE TO DO AFTER 1997.

FORD

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LEGAL ADVISERS

RESEARCH (FE)

HD/FED

HD/CRD

MR MCLAREN

GILLMORE

MR

MR FIFOOT

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FM PEKING

TO IMMEDIATE FCO

TELNO 2098

OF 020830Z DECEMBER 1987

AND TO IMMEDIATE HONG KONG

AND TO ROUTINE TOKYO

יד

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TOP COPY

CULTURAL AGREEMENT. YOUR TELNO 1039: HONG KONG/JAPAN

·

1 PIGOTT TOOK ACTION ON 1 DECEMBER WITH WANG WEIYANG AS INSTRUCTED

IN TUR.

2. WANG SAID HE WAS GRATEFUL FOR THIS INFORMATION. HE ASKED A NUMBER OF QUESTIONS, SUMMARISED BELOW:

(A) WAS THIS THE FIRST CULTURAL AGREEMENT OF THIS TYPE BETWEEN HONG KONG AND JAPAN?

(B) WHEN DID NEGOTIATIONS START ON THE AGREEMENT AND WHAT HAD BEEN THE ROLE OF THE BRITISH GOVERNMENT?

(C) ACCORDING TO THE SPEAKING NOTE, THE AGREEMENT WOULD ENTER INTO FORCE FOLLOWING AN EXCHANGE OF NOTES, AUTHORISED BY THE BRITISH GOVERNMENT. SINCE HONG KONG WAS A NON-SOVEREIGN AREA, IT HAD NO RIGHT TO NEGOTIATE OR CONCLUDE AGREEMENTS WITH A SOVEREIGN STATE. IT NEEDED TO BE AUTHORISED BY THE UK GOVERNMENT. WHAT FORM DID THIS AUTHORISATION TAKE IN THE CASE OF THE PRESENT AGREEMENT?

(D) ACCORDING TO OUR SPEAKING NOTE, IF THE AGREEMENT WAS SUCCESSFUL IT MIGHT BE EXTENDED FOR ONE MORE YEAR. WANG SAID HE WOULD BE GRATEFUL FOR CLARIFICATION.

3. DRAWING ON THE DEFENSIVE LINE IN HONG KONG TELNO 2501, AS AMENDED BY YOUR TELNO 2696 TO HONG KONG,PIGOTT GAVE THE FOLLOWING REPLIES:

(A) IN THE PAST, HONG KONG HAD RECEIVED FINANCIAL ASSISTANCE FROM

BUT THERE HAD NOT JAPAN THROUGH A GOVERNMENT-FUNDED FOUNDATION BEEN A CULTURAL AGREEMENT OF THE PRESENT TYPE.

(B) TALKS HAD BEEN GOING ON FOR SOME TIME TO FINALISE THE DETAILS. SPEAKING PERSONALLY, PIGOTT BELIEVED THESE HAD BEEN BETWEEN THE HONG KONG GOVERNMENT AND THE JAPANESE CONSUL-GENERAL IN HONG KONG. THE

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BRITISH GOVERNMENT'S ROLE HAD BEEN TO MONITOR DEVELOPMENTS AND TO

AUTHORISE CONCLUSION OF THE AGREEMENT, AS WAS NECESSARY WHEN HONG KONG CONCLUDED A BILATERAL AGREEMENT.

(C) PIGOTT HANDED OVER A COPY OF THE ENTRUSTMENT.

(D) THE PRESENT AGREEMENT WAS A ONE YEAR AGREEMENT: THE FINANCIAL

ARRANGEMENTS RESULTING FROM IT WOULD ALL BE COMPLETED BY THE END OF THE CURRENT FINANCIAL YEAR. WE DID NOT THEREFORE BELIEVE THAT THIS AGREEMENT FELL WITHIN THE SCOPE OF THE GUIDELINES ON CONSULTATION. THE CURRENT AGREEMENT MIGHT BE FOLLOWED BY FURTHER ONE-YEAR AGREEMENTS. AT THIS STAGE IT WAS NOT POSSIBLE TO SAY: HOWEVER, WE WOULD CONSULT THE CHINESE SIDE ON ANY AGREEMENT WHICH WAS INTENDED TO LAST BEYOND 1997, AS AGREED IN THE IRO GUIDELINES.

WANG THANKED PIGOTT FOR THESE FURTHER EXPLANATIONS. HE ASKED THE FOLLOWING FURTHER QUESTIONS:

4.

(A) PIGOTT HAD SAID THAT THE AGREEMENT WAS NOT INTENDED TO LAST

BEYOND 1997: WHAT ACTION WAS THEREFORE REQUIRED FROM THE CHINESE SIDE?

(B) IN THE PAST, EVEN THOUGH HONG KONG HAD RECEIVED FUNDS AND SUPPORT FROM JAPAN IN THE CULTURAL FIELD, THERE HAD BEEN NO AGREEMENT. WHY WAS ONE CONSIDERED NECESSARY NOW?

5.

PIGOTT GAVE THE FOLLOWING REPLIES:

(A) WE REQUIRED NO ACTION FROM THE CHINESE SIDE. WE HAD INFORMED THEM SIMPLY AS A COURTESY. HE REPEATED THAT, IN OUR VIEW, THE CURRENT AGREEMENT DID NOT FALL WITHIN THE SCOPE OF THE IRO GUIDELINES FOR CONSULTATION. IF FURTHER AGREEMENTS WERE ENVISAGED WHICH WERE INTENDED TO CONTINUE AFTER 1997, WE WOULD CONSULT THE CHINESE SIDE.

/

(B) PREVIOUS ARRANGEMENTS FOR FINANCIAL ASSISTANCE IN THE CULTURAL FIELD HAD BEEN MUCH LESS FORMAL (PIGOTT GAVE AS AN EXAMPLE THE HEADS OF MISSION GIFTS SCHEME TO ILLUSTRATE ONE WAY IN WHICH WE PROVIDED ASSISTANCE ON AN INFORMAL BASIS TO CHINESE EDUCATIONAL INSTITUTIONS). SUCH ASSISTANCE HAD BEEN GIVEN BY A JAPANESE FOUNDATION DIRECTLY TO THE VARIOUS ESTABLISHMENTS CONCERNED. WITH THE INCREASE IN HONG KONG/JAPAN EDUCATIONAL LINKS, THE JAPANESE GOVERNMENT HAD BEEN KEEN TO GIVE MORE SUBSTANTIAL ASSISTANCE AND THE

HONG KONG EDUCATIONAL INSTITUTIONS WERE THEMSELVES KEEN TO RECEIVE

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