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the situation in Mongolia was calm, the economy was in a desperate state. The Russians had an historical debt to

Mongolia and would do their best to help. The recent visit should lead to an easing of the situation through new trade

agreements, but Mongolia had to look to other countries to

assist too. The Chinese might well like try to take

advantage.

Hong Kong

6. Dr Vassiliev mentioned Hong Kong and said that while

the Russians were not interested in interfering between the

UK and China, they were interested in stability in Hong Kong.

They were grateful for our positive attitude towards the possible opening up of a Russian Consulate. Resources and funds were very limited and they were currently investigating

find "swap schemes" ie. swapping a building in Moscow for a

building in Hong Kong owned by a company interested in having

floor space in Moscow. Mr Morris suggested he pursued Hong

Kong matters over lunch with members of HKD.

He did

reported Sepanda 2 tele letter

FED don't have ?

mtgvassil402

FAR EASTERN DEPARTMENT

4 FEBRUARY 1993

SEPARATE COPIES

Mr Hum

Mr Masefield

Mr Ricketts, HKD

Ms Duffield, Eastern Department Mrs Swift, Mrs Kinoshita, FED P Morrice, Esq., ATTC Taipei

Ms Painting, FED

(for action)

Chancery, Seoul Chancery, Ulaanbaatar

Chancery, Moscow Mr Wye, RAD

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