CONFIDENTIAL
156463
1370
MDLIAN
WE NOTICE THE ABSENCE OF ASEAN. ASEAN COUNTRIES ARE HONG KONG'S COMPETITORS AND WOULD NOT NECESSARILY BE SORRY TO SEE A DECLINE IN HONG KONG'S ECONOMY. BUT WE BELIEVE THAT THERE MAY WELL BE POLITICAL ARGUMENTS, BASED ON REGIONAL STABILITY AND THE PROMOTION OF A MORE OUTWARD-LOOKING AND PEACEFUL CHINA, WHICH COULD BE DEPLOYED TO PERSUADE THEM OF THE VALUE OF HONG KONG'S CONTINUED
STABILITY AND PROSPERITY AND ENCOURAGE THEM TO USE THEIR INFLUENCE
WITH THE CHINESE ACCORDINGLY. THIS WOULD BE PARTICULARLY TRUE OF OLD COMMONWEALTH MEMBERS WITH LARGE OVERSEAS CHINESE COMMUNITIES, E.G. MALAYSIA AND SINGAPORE. TO CEMENT RELATIONS WITH THESE AND
OTHER ASEAN COUNTRIES IT MAY WELL BE IN HONG KONG'S INTEREST TO LOOK INTO THE POSSIBILITY OF ECONOMIC, TECHNICAL AND OTHER FORMS OF COOPERATION WITH THEM.
5. TUR, QUITE RIGHTLY, DOES NOT INCLUDE TAIWAN AMONG THE TERRITORIES WITH WHICH HONG KONG SHOULD DEVELOP MORE POLITICALLY-
MOTIVATED CONTACTS. ALTHOUGH THERE MAY BE CONSIDERABLE ECONOMIC ATTRACTION IN DOING SO, SUCH A DEVELOPMENT WOULD PROVOKE A SHARP AND DAMAGING RESPONSE FROM THE P R C. IT IS ALSO LIKELY THAT THE
TAIWAN AUTHORITIES WOULD BE CHARY OF GETTING DIRECTLY INVOLVED IN
WHAT THEY REGARD AS THE POLITICALLY HOT POTATO OF HONG KONG.
BAILES.
YYYY
DISTRIBUTION
52
12
ΜΑΙΝ
49
.HONG KONG AGREEMENT
. (RESTRICTED)
LIMITED
HKD
HD/FED
RESEARCH (FE)
PUSD
PS/MR MAUDE
PS/LORD BRABAZON
MR GILLMORE
MR MCLAREN
ADDITIONAL
3
MR EDWARDS LEGAL ADV
MR WHOMERSLEY LEGAL ADV
NNN N
PAGE
MR FIFOOT HKD
2
CONFIDENTIAL