CONFIDENTIAL

053761

MDLIAN 5242

DOING SO.

(II) FREQUENT HIGH LEVEL VISITS WOULD SHOW THAT BRITAIN IS CONCERNED

AND REMAINS KEENLY INTERESTED. THE SECRETARY OF STATE HAS SAID HE

WILL COME BEFORE THE END OF THE YEAR. I HOPE CONSIDERATION COULD

ALSO BE GIVEN TO A VISIT BY THE SECRETARY OF STATE FOR TRADE AND

INDUSTRY (PERHAPS IN PLACE OF LORD YOUNG'S VISIT THAT HAD BEEN PLANN- ED FOR NOVEMBER, BUT BETTER TO VISIT THE BRITISH EXHIBITION IN NOVEMBER), AS WELL AS MR MAUDE AND LORD TREFGARNE IN DUE COURSE. ABOVE ALL A VISIT BY THE PRIME MINISTER MIGHT DO THE MOST TO REASSURE

PEOPLE THAT BRITAIN HAD HONG KONG AMONG ITS TOP PRIORITIES. EVEN IF WE HAD NOTHING TO GIVE, THERE COULD BE MERIT IN EXPLAINING WHAT WE ARE DOING AND THE LIMITS OF THE POSSIBLE, JUST AS SIR GEOFFREY HOWE'S VISIT PRODUCED A DISCERNABLY MORE REALISTIC ATTITUDE ON THE NATIONALITY ISSUE. IF THAT COULD BE LINKED TO A VISIT TO PEKING, TO BE SEEN TO BE MAKING A FURTHER PITCH ON HONG KONG'S BEHALF, THEN THAT MIGHT DO EVEN MORE GOOD, ALTHOUGH OF COURSE I APPRECIATE THE DIFFICULTIES OF HIGH LEVEL CONTACTS IN THE AFTERMATH OF 4 JUNE.

(SUCH VISITS HERE MIGHT TAKE PLACE AFTER THE ANNOUNCEMENT OF THE

NATIONALITY PACKAGE). ALL MINISTERIAL VISITORS COULD EXPECT A FAIRLY BUMPY RIDE, BUT AS PAUL AND MCLAREN WILL KNOW, SIR GEOFFREY HOWE'S

RECEPTION HERE WAS FAR FROM AS ROUGH AS PRESENTED IN THE UK MEDIA.

(I AM ASSUMING THE ROYAL VISIT IN NOVEMBER IS ALREADY FINALLY AGREED)

(III) ON THE BUSINESS FRONT, SUPPORT FOR THE NOVEMBER EXHIBITION, CONTINUING SUPPORT FOR TRADE MISSIONS, OTHER EXHIBITIONS ETC. WILL ALL SHOW OUR DESIRE TO MAINTAIN BRITIAN'S COMMERCIAL PRESENCE.

(IV) SO TOO WOULD BRITAIN'S SUPPORT FOR THE MAJOR PROJECTS. THE

BIGGEST IS THE NEW AIRPORT, A TRULY MASSIVE PROJECT BY ANY WORLD STANDARDS. IT IS POSSIBLE THAT NEITHER THE BANKS NOR THE CONSTRUCTION

COMPANIES WILL COME RUNNING AFTER THIS PROJECT. THE COSTS ARE ENORMOUS, THE RISKS ARE HIGH, AND THE PROJECT WILL NOT BE COMPLETED UNTIL 1997 OR BEYOND. BRITISH GOVERNMENT SUPPORT, PERHAPS EVEN TO THE POINT OF GUARANTEEING THE FINANCES OF THE PROJECT ON BEHALF OF THE HONG KONG GOVERNMENT, WOULD CERTAINLY BOOST CONFIDENCE AND DEMONSTRATE BRITAIN'S COMMITMENT, AS WOULD THE INVOLVEMENT OF BRITISH COMPANIES. THIS PROJECT IS ALREADY BEGINING TO TAKE ON A

SYMBOLIC IMPORTANCE GREATER EVEN THAN ITS VERY CONSIDERABLE COMMERC- IAL STATUS.

(V) KEEPING HONG KONG AS A TRULY INTERNATIONAL CITY WILL ALSO NO

DOUBT HELP. AS WELL AS EFFORTS TO MAKE IT AN INTERNATIONAL OR REGION-

AL HEADQUARTERS FOR ORGANISATIONS (PERHAPS WE COULD EVEN SUGGEST THAT

PAGE

CONFIDENTIAL

2

Share This Page