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d)

e)

f)

g)

rather than a formal basis, e.g. when those posted to the Office returned to Hong Kong. Before 1997 the serving members of the Office would also no doubt have opportunities to exchange information and consult privately with HMA Peking and other senior officers in the Embassy.

Provide logistical assistance and support to important official visitors from Hong Kong. The Office should certainly be able to carry out this function. After 1997 it would have a direct role in the organisation of such visits.

To provide a point of contact for Hong Kong businessmen, journalists, students and other travellers in the PRC.

To conduct external commercial relations with the CPG in the capacity of a separate customs territory and to liaise with relevant CPG authorities e.g. Customs, MOFERT etc.

To process applications for visas or permits for mainland citizens to visit Hong Kong. Before 1997 this could be controversial, particularly as the general question of the HKG issuing visas outside Hong Kong has not been discussed with the Chinese. It remains to be seen what visa, or more probably permit regime, would operate between Hong Kong and the mainland after 1997. It may turn out to be best to exclude this function from the Office in the first instance, although the matter will need to be addressed before 1997.

When considering the form which the office might take, we have looked at 4 options:

7.

a)

b)

To establish a Hong Kong economic and trade office (ETO) along the lines of those already established in Geneva, Washington, San Francisco etc. We do not favour this option, for two reasons. JD 93 stipulates that "the Hong Kong SAR may, as necessary, establish official and semi-official economic and trade missions in foreign countries". Even if we wanted to establish such a mission, the Chinese would almost certainly object to having an ETO as such in Peking, on the grounds that China is not a "foreign country". We want the Office in any case to have a broader mandate in the formal sense than our ETOS have.

To establish an Office as part of the British Embassy to start with. This option would have the advantage of ensuring that the office would enjoy certain

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