Background

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1.

French exports to Hong Kong in 1990 totalled nearly HK$9bn (UK: $14bn). French companies eg Bouygues are competing for business on the airport project.

2.

The French contribution on passports etc has been discreet but useful: provision of passports and

residence-permits to local employees of French firms in Hong

Kong.

3. Dumas is unlikely to take a strong line on human rights with the Chinese. The Chinese will no doubt complain

about the activities of French-based dissidents and about

Mme Mitterand's planned meeting in India with the Dalai

Lama.

MARAIK/3

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