CONFIDENTIAL
CONFIDENTIAL
FM PEKING
TO IMMEDIATE F CO
TELNO 965
OF 020756Z JULY 90
INFO ROUTINE HONG KONG, BUDAPEST
!
511
34
M
2
110660
MDHIAN 7242
HKB 020/13
Y
05 VÜL 1990
31
YOUR TELNO 273 TO BUDAPEST: HONG KONG/HUNGARY: TRADE OFFICE.
1.
WE ARE UNSIGHTED, SINCE THE LAST WE HEARD ON THIS SUBJECT CHONG KONG TELNO 1252) INDICATED THAT THERE WAS NO (NO) QUESTION OF HUNGARY ESTABLISHING A TRADE OFFICE IN HONG KONG IN THE NEAR FUTURE. IT WOULD HAVE BEEN HELPFUL TO HAVE BEEN KEPT IN TOUCH WITH THE CHANGING POSITION.
2.
THERE ARE THREE LIKELY CHINESE SENSITIVITIES:
(A) THE GENERAL SENSITIVITY ABOUT HONG KONG CONDUCTING ANY RELATIONS DIRECTLY WITH FOREIGN GOVERNMENTS. WE HAVE RECENTLY SEEN EXAMPLES IN CONNECTION WITH HONG KONG'S OPENING OF TRADE OFFICES IN BRUSSELS AND TORONTO, BUT THE SAME CONSIDERATIONS ARE LIKELY ALSO TO APPLY TO THIRD COUNTRY OFFICES OPENING IN HONG KONG.
(B) SINO-HUNGARY RELATIONS ARE NOT GOOD. ON 1 JULY TAIWAN OPENED A TRADE OFFICE IN BUDAPEST AND HUNGARY WILL RECIPROCATE LATER THIS YEAR (BUDAPEST TELNO 449). THIS WILL MAKE THE OPENING OF THE HUNGARIAN TRADE OFFICE IN HONG KONG EVEN MORE SENSITIVE IN
CHINESE EYES.
(C) IF AGREEMENT ON THE OFFICE IS ANNOUNCED DURING THE PRIME MINISTER'S VISIT TO HUNGARY IT MIGHT REVIVE CHINESE CHARGES OF **INTERNATIONALISATION''. THE CHINESE WILL BE CONCERNED BY THE HIGH PROMINENCE BEING GIVEN TO THE ESTABLISHMENT OF THE OFFICE, PARTICULARLY IF THEY HAVE NOT BEEN FOREWARNED OF THE ANNOUNCEMENT. IT SHOULD ALSO BE BORNE IN MIND THAT THE VISIT WILL FALL NEAR JLG XVI, SO ANY CHINESE REACTION TO THE ANNOUNCEMENT COULD SPILL OVER INTO THE JLG.
3 =
IN THE CURRENT CLIMATE OF SINO-BRITISH DEALINGS OVER HONG KONG, IT WOULD BE DIFFICULT TO ALLAY CHINESE SENSITIVITIES ENTIRELY. BUT IT WOULD HELP TO REDUCE ANY ADVERSE REACTION IF WE WERE ABLE TO WARN THEM BEFORE ANY ANNOUNCEMENT.
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CONFIDENTIAL