CONFIDENTIAL

FM FCO

TO IMMEDIATE HONG KONG

TELNO 823

OF 20123OZ APRIL 90

INFO IMMEDIATE BUDAPEST

CONFIDENTIAL

22

021737 MDHOAN 7362

невого 13

DIVERT

25 APR 1990

PERSONAL FOR GOVERNOR FROM PAUL, HKD

18

YOUR TELNOS 1251 AND 1252: HUNGARY'S RELATIONS WITH HONG KONG

1.

WE TOUCHED ON THIS SUBJECT WHEN I WAS IN HONG KONG LAST WEEK AND AGREED THAT I WOULD REVERT TO YOU WITH FURTHER THOUGHTS ABOUT THE GENERAL ISSUE.

2.

THERE HAS NOW BEEN A NEW DEVELOPMENT. THE HUNGARIAN CONSUL-GENERAL CALLED ON THE DEPARTMENT ON 17 APRIL AND HANDED OVER A NOTE VERBALE FORMALLY REQUESTING QUOTE PRELIMINARY AGREEMENT IN PRINCIPLE UNQUOTE TO THE ESTABLISHMENT OF A HUNGARIAN CONSULATE IN HONG KONG (TEXT IN MIFT). KALLOS SAID THAT THE HUNGARIAN GOVERNMENT HOPED TO ESTABLISH A CONSULATE IN HONG KONG WITHIN THE NEXT ONE TO TWO YEARS. SPEAKING PERSONALLY, KALLOS ADDED THAT HE WAS SURPRISED THAT HIS GOVERNMENT WAS NOW PRESSING FOR A CONSULATE RATHER THAN A TRADE OFFICE GIVEN THE PREVIOUS CAUTIOUS REACTION FROM THE BRITISH SIDE.

3. WE ARE REPLYING SEPARATELY TO THE QUESTIONS RAISED IN FIRST TUR ABOUT THE POSSIBILITY OF FURTHER RELAXING YOUR VISA POLICY FOR HUNGARIAN AND OTHER EAST EUROPEAN NATIONALS. AS FAR AS UP-GRADING YOUR RELATIONS WITH HUNGARY IS CONCERNED, WE UNDERSTAND YOUR REASONS FOR WISHING TO PROCEED IN A MEASURED WAY GIVEN THE NEED TO TAKE ACCOUNT OF CHINESE SENSITIVITIES AND TO RESOLVE THE SECURITY IMPLICATIONS. WE NOTE, HOWEVER, THAT PEKING DO NOT SEE ANY INSUPERABLE OBSTACLES TO THE OPENING OF A HUNGARIAN TRADE OFFICE PROVIDED THAT WE CAN SATISFY OURSELVES THAT FOLLOWING THE POLITICAL CHANGES IN HUNGARY, INCLUDING CHANGES IN THE COMPOSITION OF HUNGARIAN OVERSEAS REPRESENTATION, THE CHINESE WOULD HAVE NO LEGITIMATE CAUSE FOR COMPLAINTS ON

THE LATEST ASSESSMENT OF SECURITY GROUNDS (PEKING TELNO 281). THIS IS BEING SENT TO YOU.

PAGE CONFIDENTIAL

1

THIS IS A COPY

THE ORIGINAL HAS BEEN RETAINED

IN THE DEPARTMENT UNDER

SECTION 3 (4) OF THE PUBLIC RECORDS ACT 1958

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