PA

UNCLASSIFIED

нке ого/zi

MrStony

RECEN

1180LW900

UNCLASSIFIED

FM BTC HONG KONG

TO TELELETTER ULAN BATOR

FOREIGN

25/6

23

OFFICE

12

SC

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042706

MDTTAN 2135

6 ij kc FUSD

RAUCAS Sovero

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TELELETTER FILE REF CECO 353/5

LONDON

OF 14063OZ JUNE 90

FROM RICHARD GRAHAM, BTC HONG KONG

FOLLOWING FOR LES HARTLEY ESQ, HEAD OF CHANCERY

AND TO STEPHEN BRADLEY ESQ, DEPUTY POLITICAL ADVISER, HONG KONG

ANDREW SEATON ESQ, FED, FCO

DR JIM HOARE, HEAD OF CHANCERY, PEKING

MONGOLIAN DELEGATION TO HONG KONG

1.

PAPER

HONG KONG GOVERNMENT WILL NO DOUBT REPORT ON ITS MEETINGS 11-12 JUNE WITH THE MONGOLIAN DELEGATION LED BY DEPUTY PRIME MINISTER SHARAUSAMBUU, BUT I SHOULD COMMENT ON THE LUNCH I HAD WITH THEM AND THEIR MEETING WITH CATHAY PACIFIC.

2.

I WAS THE ONLY NON CABLE AND WIRELESS OR HONG KONG TELEPHONE REPRESENTATIVE AT THE LATTER'S LUNCH FOR THE MONGOLIANS ON 11 JUNE. BAYARTOGTOKH (CHIEF OF FOREIGN TRADE DEPT) SAID THEIR PERCENTAGE OF TRADE WITH USSR HAD DECLINED FROM 80 PER CENT TO 60 PER CENT OVER THE LAST YEARS. TRADE WITH WESTERN EUROPE HAD INCREASED, FOR EXAMPLE MACHINERY FROM GERMANY AND SOME EQUIPMENT FROM ITALY (SHOE MAKING AND GRANITE/MARBLE CUTTING). BARTER TRADE ACROSS THE BORDER WITH CHINA HAD ALSO NOTABLY INCREASED. THE GREATEST PROBLEM WAS RAIL FREIGHT ACROSS THE USSR: THIS COST MONGOLIA US DOLLARS 14 MILLION PER ANNUM. TRANS CHINA FROM TIANJIN WAS MUCH CHEAPER, BUT ONLY APPLICABLE FOR ASIAN TRADE WHICH WAS STILL IN ITS INFANCY. THEIR EARLIER VISITS TO SINGAPORE AND BANGKOK WAS TO SOME EXTENT DESIGNED TO BOOST THIS. BEHIND USSR HE PLACED CZECHOSLOVAKIA, GERMANY (BOTH), ITALY AND THEN CINCREASING, HE SAID) UK IN TERMS OF IMPORTANCE OF TRADE.

3. SHARAVSAMBU PAID COMPLIMENTS TO HMA ULAN BATOR WHOM HE SAID HE WOULD SEE AGAIN ON RETURN. HE SAID MONGOLIA WANTED BETTER RELATIONS WITH ALL OF ASIA. THEIR ONLY MISSION OUTSIDE SOCIALIST STATES (IN ASIA) WAS TOKYO AND THIS MUST CHANGE. HE ASKED HOW TO SET ABOUT OPENING A TRADE MISSION IN HONG KONG. I REPLIED THAT WHILE THERE WERE CURRENTLY NO MISSIONS OF ANY KIND FROM EASTERN EUROPE IN HONG KONG THIS WAS UNDER CONSIDERATION AND MIGHT CHANGE SOON. HIS BEST APPROACH MIGHT BE TO SOUND OUT INFORMALLY HMA

1

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