CONFIDENTIAL

020701

MDHIAN 2655

GENERAL IN HONG KONG, BUT SOLELY IN THE CONTEXT OF THE FOUR OR FIVE HONG KONG EMPLOYEES OF THE CONSULATE. PERLOT THEN RECALLED THAT IN ITALIAN COMPANY BASED IN HONG KONG HAD PUT UP A BROADER CASE TO THE ITALIAN GOVERNMENT IN RESPECT OF HONG KONG EMPLOYEES WHO HAD SERVED ITALIAN COMPANIES WELL OVER TIME, AND HAD EARNED THEIR CONFIDENCE. THE NUMBERS WERE, HOWEVER, FAIRLY SMALL. PERLOT SAID HE COULD NOT (NOT) TAKE OUR DISCUSSION ANY FURTHER SINCE HE DID NOT KNOW THE FACTS. THE PROBLEM WOULD HAVE TO BE LOOKED AT NEXT BY THE MFA'S EMIGRATION AND SOCIAL AFFAIRS DIRECTORATE, AND THIS HE WOULD ARRANGE FORTHWITH. I GAVE HIM MY SPEAKING NOTE AND ANOTHER COPY OF

YOUR 20 DECEMBER STATEMENT.

COMMENT

5. IT IS HELPFUL THAT DE MICHELIS IS AWARE OF THE PROBLEM AND OF OUR APPROACH TO IT AND THAT HE HAD DIRECT EXPOSURE TO THE SITUATION THROUGH HIS RECENT VISIT TO HONG KONG. AFTER MY CALL ON PERLOT, FERRI REMARKED THAT DE MICHELIS WAS TAKING A VERY ACTIVE INTEREST IN THE PROBLEMS OF HONG KONG AND SOUTH EAST ASIA. FERRI SAID THAT, SPEAKING PERSONALLY, HE THOUGHT DE MICHELIS MIGHT BE RECEPTIVE TO OUR IDEAS AND MIGHT WANT TO MAKE 'SOME INITIATIVE'. HE UNDERSTANDS THAT MINISTERS WILL PROBABLY RETURN TO THE CHARGE WITH THEIR ITALIAN COUNTERPARTS, AS WILL I WHEN MY CALL ON DE MICHELIS COMES THROUGH.

EGERTON

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DISTRIBUTION

62

ΜΑΙΝ

59

.HONG KONG AGREEMENT

.(RESTRICTED)

LIMITED

HKD

HD/FED

RESEARCH (FE)

PUSD

NEWS D

PS/MR MAUDE

PS/LORD BRABAZON

MR GILLMORE

MR MCLAREN

MR BLATHERWICK

MR MOSS

ADDITIONAL

3

MR WHOMERSLEY LEGAL ADV

MS BARRETT LEGAL ADV

NNNN

PAGE

MR FIFOOT HKD

2

CONFIDENTIAL

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