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From :

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H29 171/4

PS/Lord Caithness

16 October 1991

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CC :

Sir J Coles o/r Mr Burns

CALL

Mr Ricketts, HKD

CALL ON LORD CAITHNESS BY DR VICTOR FUNG: 15 OCTOBER 1991

1. Dr Fung called on Lord Caithness yesterday to introduce himself as the new Chairman of the Hong Kong Trade Development Council in advance of last night's HKTDC dinner (although Lord Caithness and Dr Fung had in fact met on previous occasions in Hong Kong).

2. After some general conversation about the work of the HKTDC the conversation turned to perceptions in the UK of Hong Kong. Lord Caithness said that the Hong Kong political scene was misunderstood in the UK. Martin Lee's view of the LegCo elections and their consequences for the constitutional development of Hong Kong were given disproportionate attention in the UK media. It was important that Hong Kong businessmen and other non political figures in Hong Kong should speak out to put the alternative view. The point needed to be stressed that the Hong Kong political system was not a Western democracy: Hong Kong voters had understood that the LegCo elections had not been about electing a new government and did not expect that the UDHK's victory should be automatically translated into majority representation in ExCo. It was also important to explain the facts of Hong Kong life about cooperation with China.

3. The need for businessmen and others to speak out on such issues seemed to be new to Dr Fung, although he quickly understood what Lord Caithness was driving at. He said that it had proved very difficult to interest businessmen in politics. They saw political activity as unnecessary and futile, given the inevitability of transition to Chinese sovereignty. However, he thought that in time organisations such as APEC and PECC would throw up business leaders prepared to speak out. He would bear Lord Caithness' points in mind and would speak accordingly, for example, when he was interviewed on BBC Breakfast Television the next day. Personally, he thought that maintaining Hong Kong's economic vibrancy and the morale and effectiveness of its Civil Service were more critical factors in ensuring a successful transition than constitutional reform.

/4.

Dr Fung

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