CONFIDENTIAL

025364

MDLIAN 3441

INTERNATIONAL PRACTICE. OUR ECONOMIC SANCTIONS AGAINST SOUTH AFRICA (IE BAN ON IMPORT OF GOLD COINS AND IRON AND STEEL) WERE INTRODUCED IN 1986 AFTER CAREFUL CONSIDERATION OF ALL RELEVANT FACTORS, HAVING REGARD TO HONG KONG'S MORAL POSITION AGAINST APARTHEID, THE GROWING CONSENSUS INTERNATIONALLY ON SANCTIONS AGAINST THAT COUNTRY AND SIMILAR ACTIONS TAKEN BY OUR MAJOR TRADING PARTNERS. HONG KONG WOULD KEEP SUCH ACTIONS UNDER REVIEW IN THE LIGHT OF THE SAME RELEVANT FACTORS.

4. IN ADDITION, THE VISITORS RAISED THE FOLLOWING SPECIFIC ISSUES:

(A) THE COMPLAINT BY TH WORLD CAMPAIGN AGAINST MILITARY AND NUCLEAR COLLABORATION WITH SOUTH AFRICA ABOUT HONG KONG IMPORTING RIOT CONTROL EQUIPMENT FROM SOUTH AFRICA - WE EXPLAINED THE CIRCUMSTANCES LEADING TO AN IMPORT LICENCE BEING WRONGLY ISSUED FOR ONE SHOT-GUN FROM SOUTH AFRICA TO BE TESTED IN HONG KONG BY THE POLICE FORCE. (OUR TELNO 2429 OF 1989).

(B) HONG KONG EXPORTING OIL TO SOUTH AFRICA WE CLARIFIED THAT HONG KONG HAD NO OIL PRODUCTION AND THEREFORE NO EXPORT OF OIL. THE IMPORT AND EXPORT OF OIL WERE SUBJECT TO LICENSING CONTROL AND WE WERE NOT AWARE OF ANY RE-EXPORT OF OIL TO SOUTH AFRICA.

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WE POINTED (C) THE RE-EXPORT OF SOUTH AFRICAN COAL FROM HONG KONG OUT THAT COAL WAS NOT AN ITEM INCLUDED IN OUR ECONOMIC SANCTIONS AGAINST SOUTH AFRICA. THIS DECISION WAS TAKEN IN 1986 WHEN WE INTRODUCED THE OTHER TRADE RESTRICTIONS. WE NOTED THAT OUR MAJOR TRADING PARTNERS LIKE THE EEC AND JAPAN ALSO DID NOT IMPOSE A BAN ON SOUTH AFRICAN COAL.

5. THE VISITORS MENTIONED THAT MANDELA MIGHT VISIT HONG KONG AND THAT IF SO HE WOULD WISH TO HAVE DISCUSSIONS WITH STI. STI AGREED THAT HE WOULD BE PREPARED TO SEE MANDELA.

6. THE HONG KONG MEDIA INTERVIEWED THE VISITORS AFTER THEIR MEETING WITH STI. THERE WERE ALSO REQUESTS FOR INTERVIEWS WITH STI. WE HAVE THEREFORE ISSUED A WRITTEN STATEMENT, THE TEXT OF WHICH IS IN MIFT.

7. THE MEETING WITH THE POLITICAL ADVISER ON 2 MARCH COVERED MUCH OF THE SAME GROUND. THE ANC VISITORS ASKED WHETHER HKG WOULD BE PREPARED TO BAN COAL IMPORTS. EHRMAN ASKED IN REPLY WHETHER OTHER COUNTRIES WERE INCREASING SANCTIONS. THEY ACCEPTED THAT THIS WAS NOT REALISTIC AND DROPPED THE MATTER.

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