CONFIDENTIAL

He

The Secretary of State agreed that we must safeguard and build up British interests in Hong Kong. We wanted British business to take a Japanese view not a sunset view of the territory. This was primarily a job for HMG and Mr Keswick should chivvy and chastise HMG as necessary. The Governor's job was different. Hong Kong was increasingly autonomous. had to run Hong Kong until 1997. That included ensuring a level playing field. In a very difficult job, the Governor deserved both the Government's support and that of people like Mr Keswick. The Secretary of State did not accept that there was deliberate unhelpfulness on the Governor's part and at several points in the meeting the Secretary of State urged Mr Keswick to support the Governor. Mr Keswick, who was boisterous and good humoured throughout, said he would agree to lay off for the rest of the year but he hoped by then that the Government of Hong Kong would be a bit more helpful.

The Secretary of State replied to some of Mr Keswick's detailed points on the lines of HKD's briefing. He said that where there were valid individual points, these would be taken up. He would in any case write to Mr Keswick with detailed answers to his letter. I should be grateful for a draft from Hong Kong Department

The Secretary of State asked Mr Keswick to call on Lord Caithness once he had received the Secretary of State's letter.

30 July 1990

CC:

PS/Lord Caithness PS/PUS

Mr Burns

Special Advisers

Miss Marsden, HKD

CONFIDENTIAL

(J S Wall)

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