PRIME MINISTER

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the department for Enterprise

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HKC121/5

HONG KONG : TRADE AND INVESTMENT

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I have been a frequent visitor to Hong Kong over the last twenty years and every time I go there I become more convinced that we must make a greater effort to promote our economic interests. need to encourage UK industry and commerce to do more in Hong Kong and at the same time we must ensure that we get at least our fair share of mobile Hong Kong entrepreneurs.

2. I was glad to see Douglas Hurd's letter of 25 January setting out more flexible arrangements for admitting Hong Kong businessmen here. But I doubt whether they yet go far enough to ensure that they see the UK as a welcoming haven for their entrepreneurial investments.

3. I have been told on a number of occasions by Hong Kong Chinese that they can easily get citizenship in Ireland or

Ι Portugal which would then give them the right to live here. do think that we should adopt a much more flexible approach for up to 100 or so Hong Kong Chinese entrepreneurs who, provided that they made a suitable investment in the UK (of, say, half a million pounds or so), could be assured as a matter of certainty that they would in due course obtain a passport.

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The second issue concerns our trading position in Hong Kong itself. Hong Kong is a increasingly competitive market but also an attractive one, particularly as a gateway to China. glad that the post of Senior British Trade Commissioner has been upgraded. But he ought to move to a more prestigious building

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