CONFIDENTIAL

Plse PA

Trade Rel

39)

CALL ON THE PRIME MINISTER BY MR NEEDHAM AND LORD PRIOR ON

WEDNESDAY 5 MAY

LIKC 012/4

Hong Kong

X

The Secretary of State and Mr Goodlad briefed Lord Prior

before his most recent visit to Peking on 18 April. The Prime

Minister may wish to tell Lord Prior that the first two rounds

of talks have gone smoothly, but there has been no substantive progress. As expected, the Chinese sought to obtain our

agreement on points of principle. The next round of talks

will be held between 21 and 23 May (after Vice Foreign

Minister Jiang Enzhu returns from accompanying Foreign

Minister Qian Qichen on his trip to Europe).

Chinese Discrimination against Jardines

Jardines have recently obtained clear evidence of

discrimination against them by the Chinese. The GEC-Marconi

representative office in Beijing is exclusively staffed by Jardine Matheson personnel. If Lord Prior raises the question of Chinese discrimination against Jardines, the Prime Minister

could say that we are aware of this and have spoken to the

Chinese Embassy about it. The Embassy in Peking have spoken

to MOFTEC and will also be speaking to the Ministry of Foreign

Affairs.

CONFIDENTIAL

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