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WRITTEN TO THE FOREIGN SECRETARY).

-LORD CAITHNESS MIGHT WISH TO MENTION THE EFFORT BY THE HMG TO TRY TO RESOLVE THE VIETNAMESE ILLEGAL IMMIGRANT PROBLEM AND HIS RECOGNITION OF HOW GREAT A BURDEN THIS PLACES ON THE HONG KONG COMMUNITY.

3. LORD CAITHNESS COULD MAKE SOME COMMERCIAL COMMENTS ALONG THE FOLLOWING LINES BUT I DO THINK THAT THESE SHOULD BE SECONDARY TO AN UPBEAT POLITICAL MESSAGE.

-VISIBLE EXPORTS TO HONG KONG ARE GROWING AT A RATE OF 10 PERCENT (CONSIDERABLY ABOVE THE RATE OF UK INFLATION) AND WE ARE MAINTAINING OUR POSITION AS EUROPE'S LEADING EXPORTER TO THE TERRITORY.

-EMPHASISE THE SIZE OF BRITAIN'S INVESTMENT PORTFOLIO IN HK WHICH

IS SECOND TO NONE -

HONG KONG BANK, SWIRES ETC. NOW KNOW AS A RESULT OF THE BRITISH UNDERTAKINGS EXERCISE THAT JUST UNDER 1,000 COMPANIES IN HONG KONG ARE BRITISH OR HAVE CLOSE BRITISH LINKS.

-GIVE PERSONAL IMPRESSIONS OF RECENT HONG KONG BUSINESS CONFERENCE IN LONDON.

-EMPHASISE THE TWO WAY NATURE OF TRADE AND OUR CONTINUING EFFORTS TO ENCOURAGE HONG KONG COMPANIES TO INVEST IN BRITAIN AND ESTABLISH A BASE FROM WHICH TO OPERATE IN POST-1992 EUROPE.

4. LORD CAITHNESS MIGHT ALSO REFER TO PROGRESS ON THE NEW CONSULATE-GENERAL AND OUR COMMITMENT TO MAINTAINING A LARGE PRESENCE IN THE TERRITORY AFTER 1997.

5. PRESS (INCLUDING TV) WILL BE PRESENT. UNLESS LORD CAITHNESS SPECIFIES OTHERWISE BEFOREHAND THE AUDIENCE ARE LIKELY TO EXPECT A SHORT QUESTION PERIOD AFTER THE SPEECH. THE COURT OF FINAL APPEAL AND THE APPOINTMENT OF THE NEXT GOVERNOR ARE OBVIOUS AREAS OF CONCERN THAT MIGHT BE RAISED THEN.

6. TO MEET YOUR DEADLINE I HAVE NOT HAD TIME TO SHOW THIS TO THE GOVERNOR IN DRAFT AND HE MAY HAVE FURTHER COMMENTS.

HEAP

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