CONFIDENTIAL
CONFIDENTIAL
FM PEKING
TO
IMMEDIATE FCO
TELNO 1200
OF 220847Z JUNE 89
ADVANCE
AND TO IMMEDIATE OVERSEAS TRADE DIVISION DTI
AND TO IMMEDIATE FAIRS AND PROMOTIONS BRANCH DTI
INFO IMMEDIATE HONG KONG, BTC HONG KONG
B
035644 MDADAN 3901
MY TELNO 1106 : SINO BRITISH RELATIONS.
.
-
1 I HAVE ALREADY SUGGESTED THAT THE PLANNED ALL-BRITISH
EXHIBITION (BRITISH EXPO CHINA 89: PEKING 1 4 NOVEMBER) TO COINCIDE WITH THE NOW UNLIKELY VISIT OF THE PRINCE OF WALES, MIGHT BE SUSPENDED (PARA 6 OF TUR).
2. SINCE THEN WE HAVE SEEN THE INTENSIFICATION OF THE CHINESE PROPAGANDA CAMPAIGN DESIGNED TO MISREPRESENT EVENTS IN PEKING AND TO CREAT AN IMPRESSION OF ''BUSINESS AS USUAL''. ANY CARELESS STATEMENT BY UNWARY FOREIGNERS, ESPECIALLY BUSINESSMEN, IS REPORTED BY THE CHINESE MEDIA, USUALLY OUT OF CONTEXT AND ON OCCASION AFTER SKILFUL EDITING. ONE OF THE EARLY VICTIMS OF THIS PLOY WAS THE
BRITISH AIRWAYS STATION MANAGER. MORE RECENTLY THE CHINESE PRESS
HAS QUOTED STATEMENTS BY THE 48 GROUP AND LONDON EXPORT CORPORATION, AND ALSO SBTC. THE SBTC STATEMENT (SEE BELOW) HAS SINCE BEEN USED IN AN ATTEMPT TO PRESSURE ROLLS ROYCE INTO RESUMING FULL OPERATIONS, AND TO PROVIDE AN OFFICIAL LETTER TO THE MINISTER OF AERONAUTIC AND ASTRONAUTIC INDUSTRIES TO SAY THEY HAVE DONE SO. ROLLS ROYCE HAVE BEEN TOO FLY TO BE CAUGHT BY THIS.
3. XINHUA OF 17 JUNE QUOTED MARY PENN OF SBTC AS SAYING ON 14 JUNE THAT BRITAIN WOULD NOT CHANGE PLANS TO STAGE THE ALL-BRITISH EXHIBITION AND THAT PREPARATIONS WERE PROCEEDING AS NORMAL. BY IMPLICATION HMG ARE PRESENTED AS SUPPORTING CHINESE CLAIMS OF NORMAL BUSINESS RELATIONS. THIS REINFORCES MY EARLIER RESERVATION ABOUT THE WISDOM OF GOING AHEAD WITH THIS HIGH PROFILE, FLAG- WAVING EXERCISE. THE CHINESE CAN BE EXPECTED TO EXPLOIT THE PREPARATORY STAGES AS WELL AS THE EVENT ITSELF FROM NOW UNTIL NOVEMBER AND THEREAFTER FOR PROPAGANDA PURPOSES. GIVEN THE STRONG AND VISIBLE BRITISH GOVERNMENT INVOLVEMENT IN THIS EXHIBITION, THIS MIGHT WELL CAUSE US CONSIDERABLE POLITICAL EMBARRASSMENT ESPECIALLY WITH REGARD TO HONG KONG. ON THE OTHER HAND, AN EARLY DECISION TO CANCEL HMG'S SUPPORT FOR THE EXHIBITION WOULD
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