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CONFIDENTIAL

From: Lord Caithness

Date : 9 December 1991

CC: FCO Ministers

Special Advisors PUS

Chief Clerk Sir J Coles

Mr Bayne

Mr Appleyard Mr Burns

Mr Miles

Mr Davies, FED

Mr Ricketts, HKD

Mr Cooper, Planners

Mr Bertram, OED

Mr Chase, RMD

Sir Percy Cradock,

Mr Crystal, News Dept

284

No 10

Sir R McLaren KCMG, Peking Sir D Wilson GCMG,

Hong Kong

A C Galsworthy Esq CMG,

UKRep JLG, Hong Kong

PW Heap Esq SBTC CMG,

Hong Kong

J W MacDonald Esq, Shanghai

Secretary of State

CHINA, HONG KONG (AND MACAU), 27 NOVEMBER

1.

7 DECEMBER

When I set off for my ten day visit to China my principal objectives were (i) to acquire a better understanding of the Chinese perception of, and approach to, Hong Kong, and to make progress on some of the main issues; (ii) to build on your visit and that of the Prime Minister by developing a more comprehensive and mature UK-China relationship that is less Hong Kong focussed and in which a rounded dialogue on international and regional affairs has its proper place; (iii) to develop our commercial relations from their current low level and in particular to encourage the Chinese to think in terms of trade on a normal commercial basis; (iv) to gain some first hand impressions of China and the Chinese themselves.

2.

I have to say that I was only partially successful. My overriding impression after my talks in Peking with Qian Qichen, Vice Foreign Minister Tian Zengpei, Lu Ping and Vice Premier Zou Jiahua (the details of which have been reported by telegram) is the extent to which Hong Kong dominates the bilateral relationship and leaves no place for the development of a satisfactory dialogue on other issues. It ought to have

CONFIDENTIAL

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