Your ref: PA CR 10/511/86

CONFIDENTIAL

BRITISH TRADE COMMISSION

HONG KONG.

31 July 1990

Miss Masden Mr/ land 0/2.

W G Ehrman Esq

Political Adviser

Government Secretariat HKC406/3

3/F Main Wing

Central Government Offices

Hong Kong

11 SEP 1990

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new file.

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Дет

Willian

HONG KONG OFFICE IN PEKING

for 98.

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1. Thank you for copying to us your letter of 25 July to Alan Paul. is interesting to see how your thoughts are moving but I doubt whether we have much direct interest, nor any substantive comments on your proposals, which seem very sensible, unless they begin to impinge upon our plans for our Consulate-General in Hong Kong. Since clearly they might, I would welcome being kept in touch with developments.

2. Our only other comment is to wonder about the thought behind the third sentence of paragraph 7d. You have argued earlier in the letter that the Office in Peking would be dealing only with trade and cultural related matters until agreement had been reached on visas and travel permits for mainlanders visiting Hong Kong. Moreover the Chinese would surely not see such an office as "external" representation but an internal matter, in line with the Peking offices of China's provinces. This seems to be something of a contradiction. You are also aware I am sure that many other federal government systems provide for provincial or state offices in the capital. Such an arrangement is far from unusual. In my last post, Nigeria, for example, all the state governments had just such state offices in Lagos.

Yous

Peles

ever

CC:

Alan Paul Esq, HKD, FCO

David Coates Esq, BE Peking

PW Heap

Anthony Galsworthy Esq CMG, JLG, HK

PWH/mcs

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布政司署

香港下亞厘畢道

CONFIDENTIAL

本署檔號 Our Ref.: PA CR 10/511/86

來函檔號 Your Ref.:

Alan Paul Esq

DIEU

GOVERNMENT SECRETARIAT

LOWER ALBERT ROAD HONG KONG

cc. Mr McKaren

Mr Burns /r

ET MON

1.

2. Ms Mayor

My Paul /

HKC 4.06/3

11 SEP 1998

Mr

Walker RAD

Air

Мајст

Please discuss.

25 July 1990

2+7 3/5

Fifoot Legal Advisers

Seaton

FED.

Back

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fm 18

Hong Kong Department

F CO

Dear

Alan,

HONG KONG OFFICE IN PEKING

1.

Since the latter half of 1989, we have been considering the possibility of proposing to the Chinese the establishment at an early date of a Hong Kong Office in

Peking. The Governor has now concluded that it would be best to think of setting up such an office around 1995. This letter sets out our thinking on the issue and the reasons for our conclusion.

2.

Article 22 of the Basic Law provides, inter alia, that "the Hong Kong Special Administrative Region may establish an Office in Beijing". There is no further stipulation as to the nature and responsibilities of such an Office.

3.

Recognising that it is always easiest for the Chinese to place any new proposal within an existing concept, we have looked at the arrangements for the Offices in Peking of the various Chinese provinces. As we understand it (and I am indebted to Shaun Riordan for the information that follows) the Provincial Offices concentrate on liaison, and within that on trade. They disseminate routine information on their provinces. They also promote culture for their provinces. They do not negotiate with the CPG on important matters. Such matters are dealt with directly between Peking and the Provincial Government or Provincial Party Committee. Nor do the Offices deal with internal travel permits. These are handled by the Public Security Bureau.

4.

The Offices are called "The Peking Office of The People's Government of X Province". They have an average complement of 10-15 staff. The senior staff come from the province which they represent. Junior staff tend to be Peking residents locally employed who make familiarisation trips to the province they work for. The Offices are housed in various

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accommodation. Xinjiang, for example, has a nice old building to itself. Many other Provincial Offices are housed in a portion of an office block.

5.

We understand that the effectiveness of the offices varies markedly. The Embassy, for example, deals with Xinjiang Office, which is efficient, on commercial matters; and with the Fujian Office, which organised a very successful visit for Sir Alan Donald recently. Where the Offices are not effective, the Embassy deals direct with the Provincial Governments.

6.

In both a pre 1997 and a post 1997 context, we consider that the tasks of a Hong Kong Office should be broadly similar to those of Provincial Offices. The main role of our Peking Office should be to build up the HKG/SARG's knowledge of, and contacts with, the CPG, and to help engender in the latter the correct understanding of developments in and affecting Hong Kong. The specific functions of the Office should probably include the following:

a)

b)

c)

To develop liaison with appropriate institutions of the CPG, particularly the Hong Kong and Macau Affairs Office of the State Council. It has not proved easy to establish close links with the HKMAO of the State Council hitherto. The Embassy has to deal with the HKMAO in the Ministry of Foreign Affairs. The Trade Development Council office in Peking has some low-level contacts with the State Council Office. Nearer 1997 however, and with tact and patience, it might be easier to build up contacts, even if this has to start on an informal basis. Much would no doubt depend on the ability of the Hong Kong Officers concerned. Their seniority would also help in establishing links at the more senior Chinese levels.

To provide, in accordance with HKG/SARG directives, general information to the CPG about developments in and affecting Hong Kong. There should be no problem with unclassified and general information. But we envisage that consulting the Chinese on major new initiatives should remain the responsibility of UKREP JLG and the HKG before 1997, and the SAR Government after 1997.

To report on significant developments in China which are of direct consequence to Hong Kong. Before 1997 it would obviously be important to ensure that the Office was not duplicating the work done by the Embassy. It would also be necessary to avoid any accusation of espionage. We envisage therefore that

the Office would maintain no classified records and that reports might well be made more on an informal

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