PERSONAL AND CONFIDENTIAL

exercise.

Many thanks for your key role in this: keep up

the service!

Lobbying

3.

We are conscious that other countries and companies are vigorous in lobbying the Hong Kong Government at senior levels: recent examples, George Shultz and Giscard

D'Estaing. There are no inhibitions here about undertaking similar lobbying for the British interest. But clearly we shall look to you for advice on whom best to tackle and when: advice simply to lobby the Governor

will not I think be the most constructive or fruitful.

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4. The DTI will therefore continue to brief their

Ministers to raise these issues when they are in Hong Kong or when senior government officials come here. Christian Adams considers that the "level playing field" problem is now of less concern to British companies, most of whom do not believe that the Hong Kong Goverment is actively tilting the playing field against them (much as they would like the HKG to tilt it towards them!) They are focussing rightly on putting forward good competitive proposals: we have been anxious to ensure that they understand that our powers of influence will be limited if they are seriously adrift on terms! We also consider that the Hong Kong Government is no longer as concerned about Chinese sensitivity that British companies will get a disproportionate share of the contracts. The Prime Minister made the point in Peking that he hoped British companies would do well, and the Chinese did not challenge it.

PERSONAL AND CONFIDENTIAL

9.

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