THE FOI

SHOULD

VING REFERENCE NUMBER

QUOTED IN ANY REPLY

NO

CAYMAN ISLANDS

OFFICE OF THE GOVERNOR

GRAND CAYMAN

CAYMAN ISLANDS

19 February

90

19

Robin Gorham Esq

WIAD

FCO

Dear Rough,

PROPOSAL FOR A CAYMAN ISLANDS GOVERNMENT REPRESENTATIVE OFFICE IN HONG

KONG

Some months ago a proposal was received from a group including representatives of a Hong Kong law firm, a United States law firm (apparently run by Hong Kong people), and a local businessman to set

1.

up a "Trade and Business Information Centre" in Hong Kong, under the auspices of the Cayman Islands Government, but run by the group, with subsidy as necessary from this Government.

The proposal included tourist promotion activities, and a strong implication that citizenship or residence qualifications in the Cayman Islands might be arranged. The last idea is firmly ruled out, as you would expect.

2.

This Government is not much interested in a tourist promotion base in Hong Kong; plans are in hand in regard to Japan, as far as the tourist market from the Far East is concerned.

3.

4. There is, on the face of it, little likelihood of developing a significant trade relationship.

However, offshore banking and trust facilities, and company registration facilities provided by the Cayman Islands have been of interest for some time to a number of Hong Kong businessmen.

5.

6.

I explained to my Executive Council the possible problems of a Colonial Government setting up an office of this sort in another Colony; and the likely sensitivity of the Hong Kong Government towards any apparent attempt to "poach" business away from Hong Kong at this time.

In reality, any businessman looking for offshore financial services and the like naturally already looks outside Hong Kong. Any trading relationship would be virtually a one way flow as Cayman does

7.

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