5 May 1993

CONFIDENTIAL AND STRICTLY PERSONAL

HKB 010/2

RECEIVED IN EGISTRY

2 MAY

DESK OFFICER INDEX

PA

REGISTRY Action Taken

The Rt Hon Christopher Patten HONG KONG

Dear forener,

BIFU

Foreign & Commonwealth

Office

12

London SW1A 2AH

1.

Thank you very much for your letter of 29 April. Alastair Goodlad told me that he had a word with you on the telephone earlier this week about what we should say to Sir Percy Cradock.

2.

I accordingly spoke to Sir Percy today. I reminded him that he had told me on 4 February that he was planning to visit Hong Kong and China in the third week of May. I said I would be grateful for more detailed information on his plans. He said that he would arrive in Hong Kong on 23 May, go to Shanghai on 25 May, to Peking on 27 May and return to London on 30 May. The purpose of his visit was "business and private". He was on the Board of a Kleinwort Benson company called "The China Investment Fund". The Board had decided to hold its meeting in Shanghai. In Peking, Jiang Enzhu had offered an appointment on the afternoon of 27 May and was also offering a dinner that night. Sir Percy volunteered that he would be very careful in anything he said. He was inclined to take the line that he was delighted that the two sides were back in confidential negotiation and hoped that they would succeed. This would require compromises on both sides. He would not say any more.

CONFIDENTIAL AND STRICTLY PERSONAL

/3.

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