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KEYNOTE ADDRESS TO CAPITAL PROJECTS CHINA CONFERENCE:

7 DECEMBER 1993

HONG KONG: DAMAGE TO BRITISH COMMERCIAL INTERESTS

Points to Make (if raised)

-

Trade with China is growing and the balance of trade is in China's favour. We want to maintain close commercial relations.

We see no reason why disagreement over political issues in Hong Kong should spill over into our broader bilateral relationship.

- China wishes to join the GATT which of course provides that

countries should deal with each other without discrimination.

- Senior Chinese officials have publicly dismissed suggestions

that China would discriminate against British firms.

Appreciate British businessmen's concerns. We have a responsibility to maximise Brtish exports but equally we have a responsibility to do what we believe to be best for the people

of Hong Kong.

RECE

MUD 021/2

22 DEC 1993

108

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