I HKB 010/2

RECEIVED IN POISTRY

11 AUG 1993

Л

CONFIDENTIAL

On May

1th D

FROM

DATE CC

FICER

INDL

PA

REGISTRY Action Taken

By fax

10th.

سی

9/8

CO HUM, AUSS 6 August 1993

Mr Fry, FED

Mr Morris, HKD

27

BU 1/10p.

ви

Mr Ashton, Acting

Political Adviser HONG KONG

Mr McLean, Chargé

PEKING

J 198

Sir J Coles

SIR PERCY CRADOCK

1.

When Sir Percy Cradock called on you this afternoon in connection with his proposed book he also referred to his duties as a board member of the Kleinwort Benson China Investment Fund. He said that at the last board meeting of the Fund in Shanghai it had been agreed that the subsequent meeting would take place in Europe. He had only just learned of a further development: at Chinese invitation the board meeting would now take place in Peking on Thursday, 25 November.

2. Sir Percy said that he did not feel he could properly carry out his duties if he declined to attend a board meeting because it was in Peking. But he would not feel any need to bother the Ambassador or to go to the Embassy. He would as before make it quite clear that he would be going as a private individual, and above all would not be discussing Hong Kong with the Chinese. On that basis he hoped that there would not be another "press campaign" against him.

COMMENT

3.

After Sir Percy's departure we discussed his intentions. We agreed that it would not be easy to prevent him from going to Peking in connection with his position with Kleinwort Benson. Although his previous visit to Peking had aroused some media attention, it had been fairly clear to all that he was not going as an emissary of HMG and he had not been engaged in secret diplomacy. We would need to look again at Sir Percy's plans nearer the time. If his proposed visit happened to coincide very closely with a crucial stage in the Hong Kong negotiations we might have to consider whether he should not after all be discouraged from going to Peking. It was possible that in late November the Hong Kong negotiations could be in a very delicate stage.

Mr. Hum

Thank you.

We houd

love at this again in October and evare

the that ow. podlad and the

Crotun

CO Hum

forener

ame

aware.

Bolu Loles 7.

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