157)

Mr Grant, News Dept

MKD 301/1

Mr Woo Mr Store 10/8

Wal 19/8

Sunday Express interview with Mr Tony Smith

The Secretary of State has told me that the interview went extremely well. Mr Smith had raised a number of policy questions (South Africa/cricket; Europe; and Hong Kong) but did not do so in a way which breached the guidelines you had laid down.

The Secretary of State was asked whether he would be visiting Hong Kong. He said he would do so at some stage. Mr Smith seemed particularly interested in this reply and the Secretary of State thinks that the Sunday Express made use it as the front page news trailer for the article.

The Secretary of State was asked whether he had a message for hostage-takers. He said that the taking and holding of hostages only damaged the cause of the hostage-takers. All hostages should be released. The Secretary of State deliberately refrained from harsh language about hostage-takers since, although this would have appealed to Daily Express readers, it might have been damaging to the interests of the hostages themselves.

The Secretary of State was asked about entry into the ERM. He said we would go in. It was in our interests to do so, but

not now.

Tony Smith said to the Secretary of State that he would be happy to do a substantive interview with him at any time this was convenient. The Secretary of State should also regard the centre page of the Sunday Express as being open to him at any time. The Secretary of State thinks this could be extremely useful and would like to take advantage of the offer fairly soon. He would be grateful if you and Mr Burns could give thought to this idea.

4 August 1989

Cc:

Sir J Fretwell

Mr Gillmore

Mr Tomkys

Mr Kerr

HKD

SCD

ECD (I) Mr Fraser

a

AWAN

(J S Wall)

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