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INFO PRIORITY FCO LONDON, JLG HONG KONG, WASHINGTON, TORONTO

YOUR TELNO 001: VISIT OF PRIME MINISTER MULRONEY TO HONG KONG: 22-26 MAY

1. DEA TELL US THE PRIME MINISTER WILL TAKE A LOW KEY APPROACH ON CANADIAN/HONG KONG MATTERS DURING HIS VISIT.

2.

OFFICIALS SAY MULRONEY WILL WISH TO UNDERLINE THE BROAD RANGE OF CANADIAN INTERESTS IN HONG KONG. THE CANADIANS ARE PRIMARILY INTERESTED IN BRINGING INTO EFFECT THE VARIOUS BILATERAL AGREEMENTS (WHETHER ACTUAL OR STILL UNDER DISCUSSION) THAT CODIFY COOPERATION BETWEEN CANADA AND HONG KONG. THEY HOPE THESE WILL HELP SHOW MORE WIDELY THAT A PROSPEROUS AND STABLE HONG KONG IS IN EVERYONE'S INTERESTS.

3.

IN THIS CONTEXT THE CANADIANS SEE THEMSELVES AS AN ASIA-PACIFIC COUNTRY WITH A SPECIFIC INTEREST IN HONG KONG. THEY ALSO CONSIDER HONG KONG AS A GATEWAY TO CHINA AND THE ASIA PACIFIC REGION. MULRONEY WILL NO DOUBT WISH TO POINT UP LONG HISTORICAL TIES WITH HONG KONG (SOME CANADIAN COMPANIES THERE GO BACK A HUNDRED YEARS). 90,000 PEOPLE OF HONG KONG ORIGIN HAVE ARRIVED IN THE LAST FOUR YEARS ALONE. IN TOTAL THEY REPRESENT A SIGNIFICANT POLITICAL LOBBY.

4.

MULRONEY WILL BE BRIEFED ON THE PROPOSED HKETO IN TORONTO (YOUR TELNO 1073 TO FCO). PARLIAMENT RESUMES ON 13 MAY. OFFICIALS SAY THE DRAFT BILL ON PRIVILEGES AND IMMUNITIES IS READY AND IS TO BE PRESENTED EARLY IN THE SESSION.

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