SECRET

EYES ALPHA

FM HONG KONG

TO PRIORITY FCO

TELNO 1490

OF 07113OZ MAY 90

INFO PRIORITY BUDAPEST

SECRET

нив 345/1

RECEIVED IN AENSTRY 15 MAY 1990

ESK

ER

-4

BUDAPEST PERSONAL FOR AMBASSADOR

HKBC20/13

22

19

YOUR TELNOS VISA 145 (NOT TO BUDAPEST) AND 823 AND 824: HUNGARY'S RELATIONS WITH HONG KONG AND VISA POLICY TOWARDS EASTERN EUROPE

1. WE ARE GRATEFUL FOR THE INFORMATION IN YOUR TELNO VISA 145. LIKE YOU WE BELIEVE THAT WE SHOULD TREAT EAST EUROPEAN COUNTRIES ON A CASE BY CASE BASIS, AND THAT THE SECURITY THREAT NEEDS TO BE AN IMPORTANT ELEMENT IN OUR CONSIDERATIONS. WE WILL LET YOU KNOW THE OUTCOME OF OUR VISA REVIEW SOON.

2. THE ESTABLISHMENT OF ANY PERMANENT EAST EUROPEAN PRESENCE HERE NEEDS TO BE HANDLED CAREFULLY. WHILE WE SEE THE FORCE OF THE ARGUMENTS IN PARA 4 OF YOUR TELNO 823, CHINA IS LIKELY TO REMAIN HIGHLY SENSITIVE TO THE POSSIBILITY OF HONG KONG BECOMING A BASE FOR OPPOSITION TO THE CHINESE GOVERNMENT. THE CHINESE ARE CERTAINLY SENSITIVE ABOUT DEVELOPMENTS IN EASTERN EUROPE. INITIALLY AT LEAST THEREFORE, WE DO NOT BELIEVE THAT IT WOULD BE WISE TO AGREE TO A FORMAL CONSULAR PRESENCE.

3. IT WOULD BE EASIER TO CONSIDER A TRADE OFFICE. INDEED IF A NON- GOVERNMENTAL TRADE OFFICE WERE ESTABLISHED (WHICH MIGHT BE ABLE TO FACILITATE ALTHOUGH NOT TO ISSUE VISAS), THAT WOULD PROVIDE MINIMUM GROUNDS FOR CHINESE OPPOSITION. THE POLITICAL ADVISER HAS MENTIONED TO NONA INFORMALLY THAT WE ARE UNDER INCREASING PRESSURE FROM OUR BUSINESSMEN TO ALLOW EAST EUROPEAN TRADE OFFICES INTO HONG KONG. NCNA ASKED WHETHER THEIR ESTABLISHMENT WAS THEREFORE LIKELY. EHRMAN HAS SAID THAT HE THOUGHT THAT IT WAS QUITE POSSIBLE THAT THERE COULD BE SOME IN THE FUTURE. NCNA MADE NO COMMENT, BUT WE SHOULD NOT NECESSARILY TAKE THAT TO SIGNIFY ACQUIESCENCE.

SECRET

4.

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