CONFIDENTIAL

HKC121/5

From: RJT McLaren

Date:

Cc:

25 January 1989

PS

PS/PUS

Chief Clerk Mr Gillmore Mr Paul, HKD

PS/Lord Glenarthur

PA

SENIOR BRITISH TRADE COMMISSIONER IN HONG KONG

1. Mr Paul is preparing considered advice on

Lord Derwent's letter to Lord Glenarthur of 19 January. In the meantime, there is one development of which the Minister should be aware.

2.

Lord Derwent copied his letter to Sir Brian Hayes in the DTI. Sir B Hayes sent it on to Lord Young. I understand from my opposite number in the DTI that Lord Young is attracted to the idea put forward in Lord Derwent's letter of "privatising" the Senior British Trade Commissioner and appointing a high-profile businessman to the job, and is considering the possibility of writing to the Prime Minister about it.

3. DTI officials do not share Lord Young's enthusiasm and will seek to ride him off the idea. In the meantime, in case Lord Glenarthur sees Lord Young in the next day or two, it may be helpful to set out my own first reactions. I share the DTI officials' doubts, on the following grounds:-

(a)

(b)

The Hong Kong Association and others have been calling on the British Government to adopt a higher profile in Hong Kong and it was partly at their prompting that it was agreed to upgrade the job. It would hardly be consistent with greater Government commitment if the tasks of the Senior British Trade Commissioner were be handed over to a businessman and his office to be financed partly by the private sector.

A businessman could not do much more for British firms than the firms could do for themselves if they put their minds to it.

CONFIDENTIAL

/ (c)

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