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117260 MDADAN 5856

RAISE.

11.

ONE OTHER ISSUE THAT MIGHT JUST BE WORTH RAISING

IS THE STATUS OF THE HKETO OFFICE HERE SINCE WE UNDERSTAND THAT THE ABSENCE OF ANY DIPLOMATIC RECOGNITION IS CAUSING OPERATIONAL DIFFICULTIES. THIS IS OBVIOUSLY A MATTER FOR YOU BUT Q HIGHER PROFILE (PROVIDED THE OFFICE REMAINS FIRMLY CLEAR OF POLITICAL DIALOGUE) OUGHT BOTH TO HELP DAY-TO-DAY BUSINESS AND PERHAPS ALSO TO INSULATE IT FROM A 1997 TAKEOVER BID BY THE

CHINESE EMBASSY.

12. THE LAST POINT WORTH COMMENTING ON IS THE PARLIAMENTARY GROUP. HATA CONTINUES TO BE ENTHUSIASTIC AND I HOPE YOU CAN USE YOUR MEETING WITH HIM AND HIS COLLEAGUES TO GET MOMENTUM BEHIND THE PARLIAMENTARY GROUP. HATA HIMSELF WOULD BE AN EXCELLENT CHAIRMAN FOR IT, AND IT WOULD PROVIDE A NOCLEUS OF POLITICIANS WITH SOME KNOWLEDGE OF HONG KONG AS MORE THAN A SHIPPING ARCADE.

WHITEHEAD

YYYY

ADVANCE

2

HD/HKD

NNNN

DISTRIBUTION

2

HD/FED

4

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