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FROM : S H Broadbent`

DATE : 25 March 199′′

cc: Mr Cox, HKD

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VISIT TO HONG KONG: JOHN YAXLEY

1.

RECEIVED IN 20.

77

14 APR 1992

DESK OFFICER

INDEX

PA

tion Taken

I had lunch with John Yaxley to discuss our forthcoming visit. I explained our objectives in the terms of para 6 of HK telno. He thought this was a very good idea, and believed it to have originated at the lunch he gave for Richard Allen and you on 6 February. He hoped that this would be the first of a series. It was important that they should take place in London as well as in Hong Kong.

2. He believed that the Governor and CS were strongly behind the idea, but that there were still suspicions about interference from London, particularly among some of the Chinese Hong Kong officials. It was important that we should get off on the right foot by explaining why it was in their interest that we should understand their thinking and worries. The point of departure was HMGs responsibilities under the JD.

3.

He mentioned a few more people whom we ought to see. Probably the most significant was Raphael Hui, Director of the NAPCO. But it might be better to suggest this orally rather than in the telegram, as there would be sensitivities among the Secretaries about his role. We should also think about Peter Sutch (who is to take over from David Gledhill in May), Helmut Sohmen, Vincent Lo and Victor Fung, the new Director of the TDC. Even if we did not see Richard Allen again, it might be sensible to talk to his new Finance Director. I should also talk to Tang, the Government economist (I had, in fact, intended to do that anyway).

4.

On subject matter, he thought our plan to turn over ideas with K Y Yeung and Selby was a good one; he did not have any specific ideas to add to those we have discussed already. He is sending me various background papers which may be of interest.

5. I asked Yaxley about Labour Party interest in Hong Kong. He said that he had given lunch to the Labour Foreign Affairs team recently, in which George Foulkes is the person most immediately concerned with Foreign Affairs. Their only interest was in democracy in Hong Kong. They were pledged to approach the Chinese for an increase in the number of directly

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