CONFIDENTIAL

Hong Kong becoming a base for opposition to the Chinese Government. The Governor has taken the view, therefore, that initially at least it would be unwise to agree to a former Consular presence for any of the Eastern European countries.

5. The Governor has asked us to explain the situation to the Poles, making it clear that most of the functions they wish to carry out relate to trade and that a trade office would enable them to perform these functions perfectly adequately. He has asked us also to point out that neither the Hong Kong authorities (nor the British Government) wish to encourage emigration from Hong Kong, although there are of course no restrictions on those who want to leave.

ARIAN

A R Paul

BATAIN/2

CONFIDENTIAL

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