-HKCC OR/4
RECEN
APR 1993
DESK OFFICER. INDEX
PA
REOISTN Adien takom
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From:
PS/Mr Goodlad
M. Banks 16/
CC: Mr Hum
Mr Winkrem
1614
CHINESE THREATS TO BILATERAL TRADE?
Hugh L1 Davies
Date: 14 April 1993
Mr Ricketts, HKD
Ms Conroy, ECD (E)
Mr Murray, DTI, OT2/2D Mr Impey, DTI
POSSIBLE EUROPEAN COMMISSION
SUPPORT
see (21
1.
UK
Minister
The Minister will recall that on 18 March, MOFERT
Li Lanqing told a National People's Congress press conference that
if the Governor of Hong Kong stuck to his present position, it
would inevitably damage economic and trade relations between the
and China. On 23 March, Foreign Minister Qian Qichen repeated
the threat, adding that the responsibility for any disruption
would not be with China. There were a number of other similar
hints and we heard of a few, pretty unsubstantiated instances of
British firms being told that thay had lost, OF would lose,
contracts because of the Governor's attitude.
2.
T
*
At the time, we had two approaches from the European
Commission from Mr Simon Nuttal, Asia Director of DGI, and from
Mr Robert Madelin in Leon Brittan's Cabinet - suggesting that, as the Commission has competence in areas of trade policy, it might
raise the issue with the Chinese on our behalf. The Minister saw
FCO telno 190 (A) and queried whether this was the right approach.
Peking, UKREP Brussels and Hong Kong, however, were generally
favour of action along these lines. We undertook to reconsider
the position interdepartmentally in the light of further
developments.
3.
in
Now that the Chinese have agreed to talks over Hong Kong
later this month, they will presumably put on ice their threat to disrupt trade relations - although the issue could surface again if the talks failed to make progress or break down
14chinatrade
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