Background
CONFIDENTIAL
General
1.
The Philippines has some manufacturing investments in
Hong Kong, valued at HK$344.6 million in 1989 (which compares favourably with Singapore's manufacturing investment of HK$352.9 million). There is also a very large Philippino community in Hong Kong (largely domestic servants) estimated at around 35,000. We want to keep the Philippines Government briefed on Hong Kong and discreetly encourage them to raise issues such as business confidence with the Chinese when possible. Current Chinese suspicion of HMG motives make them more likely to listen to points about business confidence from a third party. (The Japanese took a helpful line with Qian Qichen in Tokyo recently.) The Philippines are less likely to exercise such effective
influence, but the effect of the same message from different
sources is likely to be cumulative.
PADS
2. As far as we know, the Philippines have no interest in
PADS contracts. They were lobbied in advance of the
announcement on 4 July, in common with other partners and allies. But we have not been informed of any welcoming statements for the MOU by the Philippines' Government.
Hong Kong Air Services Agreements
3. HK/Philippine air services talks on 3-4 July made no
progress on separation. The Philippine team seemed not to have focused on the subject and time was wasted repeating information which we had already given them. They claim that they are concerned about the continuity of a separated
ASA through 1997. We have explained the basis of Separation
and intend to pass them a note shortly which will deal comprehensively with this question.
TEDAEF/4
CONFIDENTIAL