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From: PS/Lord Caithness Date: 10 March 1991
cc: Special Advisers
Sir J Coles
Mr Burns
Lord Caithness had lunch today with the Hong Kong Association.
I attach a copy of the guest list. To the sound of galloping hobby horses, Mr Keswick, generally supported by those round the table and occasionally qualified by Sir Adrian Swire, made the following points:
Raising the corporation tax
the budget had been worrying. would damage business interests in Hong Kong. He hoped the new Governor would reverse the increase. Sir Adrian Swire commented that a 1% increase was not damaging in itself but if annual increments became a trend that would be worrying.
Mr Keswick hoped that the new Governor would increase the pace of privatisation in Hong Kong. Lord Caithness pointed out the difficulties that the Hong Kong Government were encountering with the Chinese over the proposed corporatisation of RTHK. Mr Keswick was not convinced.
there was some discussion about the powers of a new Governor and the Secretary of State to make wholesale changes to appointments in LegCo and ExCo. Mr Keswick thought that the Chinese Group of unofficial advisers on Hong Kong was more balanced and widely spread than the make up of LegCo and ExCo, where there were too many academics and social workers and not enough businessmen.
Mr Keswick, supported by Sir Adrian, made a pitch for a further increase in resources and status for the British Trade Commission.
there was some discussion on relations with the Chinese. Sir Adrian pointed out that progress in the JLG was still disappointingly slow. Others queried why relations between the Hong Kong Government and China were so poor when at a business level their companies had established cordial
(FCO fault) inforests relations with China. It was suggested that the row over RTHK
in Business & oppoused in protes
Hear, hear!
M
reflected poor handling of China by the Hong Kong Government. It seemed that the Hong Kong Government was making the same sort of mistakes that had lead to deadlock with the Chinese over the airport. Lord Caithness pointed out that the Chinese often insisted on dealing with London, as the sovereign power, rather than Hong Kong. Sir Adrian agreed Mr Keswick characteristically attributed much of the problem to the influence of the FCO Sinologists.
سانه
Peter Tibber PS/Lord Caithness