PERSONAL AND CONFIDENTIAL

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From: C O Hum

Date: 29 April 1993 cc: Sir J Coles

Mr Morris HKD

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SIR PERCY CRADOCK

1.

The Minister is aware of the continuing concern felt by the Governor about Sir P Cradock's plans to visit Hong Kong, Shanghai and Peking on Kleinwort Benson business in the third week of May. Sir J Coles wrote to the Governor about this on 28 April, in terms agreed with the Minister. I now attach the Governor's reply, dated 29 April. Mr Patten continues to hope we can ask Sir P Cradock not to undertake his planned visit. He also pro- poses that we should no longer give Sir P Cradock any briefing on our dealings with the Chinese.

2. I have discussed this with Sir J Coles and what follows has been agreed with him. Sir J Coles hopes he can have a private word about it with the Minister.

3. We continue to believe that it is not easy for us to ask Sir P Cradock to cancel outright his proposed visit to Hong Kong and China. He is now a private individual with private business commitments. It seems, however, that the main focus of his visit is to attend a board meeting of Kleinwort Benson in Shanghai. We do not know what his business is in Peking, but it may be that he is accompanying Kleinwort Benson executives to the capital for calls on senior Chinese. We recognise that there is a particular sensitivity about Sir P Cradock's presence in Peking. His visit is likely to come very shortly before (or to coincide with) the third round of talks with China on Hong Kong, now fixed for 21-23 May. In the circumstances, there are good arguments for telling Sir P Cradock that it would be the strong preference of Ministers that he should confine his visit to Shanghai and not travel on to Peking.

4. In any event, we should certainly make clear to Sir P Cradock the basis on which we would expect him to undertake any visit to China. The main points would be:

Sir P Cradock should make it clear to the Chinese, and in response to any questions from the media, that he would in no sense be speaking for HMG or acting as a messenger. He would be travelling as a private individual.

- we should tell Sir P Cradock that we would be emphasising his private status, as necessary, to both the Chinese and the media. We would also be making it clear, in response to any questions from the press, that we had expressed a preference that he should not travel to Peking.

PERSONAL AND CONFIDENTIAL

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