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FM BTC HONG KONG
TO PRIORITY FCO
TELNO 13
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045600
MDLIAN 6509
2
OF 121245Z JANUARY 93
INFO PRIORITY PEKING, WASHINGTON, DTI
HKD $ 120/1
REC
13 JAN 1993
FOR PS/MINISTER FOR TRADE,
INDEX
DTI FOR OT2, HEAD OF PEP AND OT2/2D
DES OFFIC
ISTA
100 Tar
UK/CHINA
SUMMARY
1. MINISTER FOR TRADE ASKS FOR A BRIEF PAPER SETTING OUT THE ARGUMENTS WHY BRITAIN IS ARGUABLY CHINA'S BEST FRIEND. BULL POINTS NEEDED ON PM'S LEAD IN SORTING OUT GATT: HMG'S CHAMPIONSHIP OF FREE TRADE, INCLUDING RESISTANCE TO PROTECTIONIST TRENDS IN EUROPE AND NAFTA: WHY THE HKG'S LOBBYING FOR MEN RENEWAL IS IN CHINA'S INTERESTS TOO: ETC.
DETAIL
2 =
IN THE COURSE OF HIS VISIT TO HONG KONG THE MINISTER FOR TRADE AND ACCOMPANYING DELEGATION CALLED ON THE HUTCHISON GROUP. (FOR NEW READERS, THE LI KA SHING EMPIRE THAT CONTROLS 30 PERCENT OF THE HONG KONG STOCK EXCHANGE, THE PORT OF FELIXSTOWE, ONE- THIRD OF VANCOUVER ISLAND AND MUCH ELSE). SIMON MURRAY, ONE OF LI KA SHING'S TWO BRITISH GENERALS, GAVE A VIGOROUS AND WELL THOUGHT THROUGH ANALYSIS OF WHY HE BELIEVED THE GOVERNOR'S POLICIES WERE RIGHT FOR HONG KONG, FOR CHINA AND FOR BRITISH COMMERCIAL INTERESTS. HE KNOW HE WAS NOT SPEAKING FOR THE ENTIRE BUSINESS COMMUNITY BUT IN BUSINESS ONE SUCCEEDED BY GETTING AHEAD OF THE GAME, NOT BY FOLLOWING THE CROWD. HE BACKED THE GOVERNOR 100 PERCENT. THE PROBLEM WAS HOW TO CONVINCE THE CHINESE AND HOW TO DISPEL THEIR DEEP SUSPICION OF BRITISH DUPLICITY.
3.
THE MINISTER RESPONDED WITH EQUAL VIGOUR AND OUTLINED THE STRATEGY HMG HAD DEVELOPED (I AM PASSING MURRAY THE STRATEGY PAPER). HE UNDERLINED PARTICULARLY THE POINTS IN PARA 1 ABOVE.
MURRAY RANG ME BACK ON 11/1 TO SAY HE HAD TRIED THESE ARGUMENTS ON ONE OF HIS MAINLAND CONTACTS OVER LUNCH AND THEY HAD HIT HOME. ON REFLECTION, HIS INTERLOCUTOR ACCEPTED THAT CHINA HAD EVERYTHING TO FEAR FROM AMERICA, EUROPE AND OTHER MARKETS FOR
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