SECRET
FM PEKING
TO IMMEDIATE HONG KONG
TELNO 136
OF 090501Z MAY 91
INFO IMMEDIATE FCO
SECRET
A
Hil 182 12.
RECEIVED
13 MAY 1991
719
006323 MDHIAN 5775
PERSONAL FOR GOVERNOR
FCO PERSONAL FOR PAUL HKD
ๆ
YOUR TELNO 102: ERIC HOTUNG
1.
SK
IN THE EVENT ZHU RONGJI GAVE THE DINNER ON 7 MAY. MY AMERICAN COLLEAGUE AND I WERE THEREFORE STOOD DOWN AT SHORT NOTICE.
2. ERIC HOTUNG CALLED SUBSEQUENTLY TO REPORT. HE HAD BEEN STRUCK FIRST BY LIU HUAQIU'S DEFERENTIAL BEHAVIOUR TO ZHU. THE LATTER COMPLAINED ABOUT HAVING TOO MUCH TIME ON HIS HANDS IN PEKING. HE WAS ALSO PLANNING A SHORT TRIP TO SHANGHAI, PROBABLY IN HOTUNG'S VIEW TO SELECT HIS OWN PEOPLE TO WORK WITH HIM IN PEKING.
3.
CONVERSATION ON HONG KONG WAS INTERMITTENT. ERIC HOTUNG CLAIMS TO HAVE ASKED LIU HUAQIU OUTRIGHT WHY CHINA WAS TRYING TO GET ITS HANDS ON HONG KONG BEFORE 1997. LIU DENIED THIS. ZHU WAS IN ''MISCHIEVIOUS'' MOOD AND BLAMED BRITAIN FOR A DELAY IN
APPROVING ADB FUNDING FOR THE NANGPU BRIDGE.
4. I ASKED WHETHER LIU WAS REALLY A PLAYER ON HONG KONG QUESTIONS. ERIC HOTUNG THOUGHT HE WAS IMPORTANT FOR TWO REASONS: HIS ACCESS TO YANG SHANGKUN AND HIS PERSONAL INTERESTS IN HONG KONG, PRESUMABLY PURSUED DURING A RECENT SECRET VISIT. IF I UNDERSTOOD HIM CORRECTLY ERIC HOTUNG HAD ALSO PUT FORWARD THE IDEA OF CHINA USING HONG KONG'S FINANCIAL COMMUNITY AS AN ENTREE INTO THE WORLD FINANCE MARKETS TO FLOAT BONDS FOR CHINESE PROJECTS. HE SUGGESTED COOPERATION NOT CONFLICT WITH THE BRITISH
WOULD BEST FURTHER THIS AIM.
5.
ALL THIS LOOKS VERY UNFOCUSSED. ERIC HOTUNG HAS MADE NO
PROGRESS IN IDENTIFYING THE REAL DECISION-MAKERS BUT HAS SENT A STRONG, INDIRECT MESSAGE TO LU PING WARNING HIM OFF T.S. LO. HIS OWN PLANS INCLUDE BUYING A HOME IN PEKING FOR USE BY THE
PAGE
SECRET
1