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decided by the Chinese Embassy; the Chinese Government could ask to see correspondence to and from the office and would have access to files; and the Embassy would have an effective veto on appointments. This approach could also set an unfortunate precedent, possibly leading the Chinese to suggest that similar arrangements be adopted for other countries. think this option should be ruled out.
This leaves Options I and III. I can understand why you prefer Option III, but I am sure that it would be very difficult to persuade Ministers to agree to introducing an Act of Parliament unless it could be demonstrated that having a range of priviliges and immunities is essential to the effective functioning of the office after 1997. And special legislation would be seen by the Chinese as an attempt to maintain "colonial" relations with Hong Kong at the expense of Chinese sovereignty.
That leaves Option I. Your paper states that Option I would result in the office lacking a proper status with HMG not according it any recognition, and that access to government agencies might be hindered. I have consulted our Protocol
Department on these points: their advice is that the office would be recognised by HMG as having the status of an economic and trade office and that whether or not the office enjoyed privileges and immunities would make no material difference to the level of access which it might have to government agencies. There will still be very significant British interests in Hong Kong going well beyond the purely commercial - after 1997, and I would not expect future members of the Economic and Trade office to have any difficulties in securing access to Government Departments on the same basis as at present. Our view is that Option I is the best option.
I would be interested in any comments that you may have on the above. If you and the Secretary for Trade and Industry remain of the view that Option III is a significantly better approach than Option I, we would need to consult Ministers. However, before doing so, we would need to know why you consider privileges and immunities to be essential. We would also need details of the role and functions which you envisage for the office after 1997.
Ye ever Че
PF Ricketts
HONG KONG DEPARTMENT
деки
Peter Rackette
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