CONFIDENTIAL
I Halall
ᄃ
FROM: R A Burns
DATE:
2
cc:
25 February 1992
PS/PUS
Sir J Coles
Mr Bone
Mr Ricketts, HKD
Mr Davies, FED Mr Broadbent,
Economic Advisers
PS/Lord Caithness
魚
HONG KONG FINANCES
1. I hope that the Minister of State will find time to glance at the attached minute from Mr Broadbent, on his way to Hong Kong. Mr Broadbent has been closely involved in our efforts to gain a better understanding of the economic functioning of Hong Kong over the last year. I had a word with him before his recent visit to the Far East, and I have read with great interest the report he has made on a day's discussions in Hong Kong last week.
2. I am pleased that he has come away with a relatively positive view about Hong Kong's prospects and the general level of competence with which the problems are being tackled. I rather agree with him that some of our recent difficulties can be put down to a question of communication. The Minister will note that we and the Treasury are making good progress in following up the Financial Secretary's interest in promoting a better interchange of ideas. The arrival of Mrs Lomax (Treasury's Economic Adviser) in the middle of March for a week's visit should considerably add to our understanding of the problems Hong Kong faces, and of their strategy for dealing with them.
3. Nonetheless, I also agree with Mr Broadbent that we should try to set up a rather more regular pattern of discussions with the Hong Kong Government about progress across the economic waterfront, and particularly on issues that will involve us in talking to the Chinese. It has long been my feeling that some of the anxieties and concerns which we feel here in London are not easily handled by telegram and written correspondence. What we need is a regular pattern of consultation which is best conducted outside the framework of visits to Hong Kong, eg Ministers, when time is pressing and the opportunity for reflective enquiring discussions almost impossible.
EM4AAH
CONFIDENTIAL