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with the Americans, with the MFA in Peking. I am sure that the

Embassy are right to advise that they should avoid getting involved in the details of alleged offences, and should emphasise in particular the adverse impact on Hong Kong, and for Hong Kong and China's commercial interests, of this kind of harrassment of Hong

Kong Chinese businessmen.

4.

As BDTC/BN (0)s, the two individuals concerned may claim the right of consular protection (paragraph 5 of Peking telno 1473), although in the eyes of the Chinese authorities they will be regarded as Chinese nationals for consular purposes.

5.

I have discussed this matter with Mr Maude and with

Mr Gillmore, who are in general agreement with the advice in paragraphs 2 and 3 above.

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ARPane

A R Paul

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