TNAG-0589-FCO40-722-Private-visits-of-leading-personalities-from-Hong-Kong-to-UK-1976 — Page 8

CONFIDENTIAL

thought it was interesting to note that in the composition of the committee responsible for the funeral arrangements of Mao great care had been taken to ensure that all shades of opinion were represented.

Distribution

Mr Larmour

Mr Cortazzi Mr Male

PS/Lord Goronwy-Roberts Mr Stewart

Mr Martin FED

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PS/PU

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HONG KONG: Mr Y K PAO'S CALL ON THE PUS

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Mụ. Costarzi

to see. Dim 18/10.

1. Mr Cortazzi, who has seen a copy of my submission of 14 October, has asked me to draw your particular attention to the Line to Take in the brief on the Hong Kong economy. This suggests that the PUS might, in referring to the strength of the economy, make the point that this should enable Hong Kong to accelerate implementation of social programmes in order to raise standards of employment etc to a level broadly comparable to those in neighbouring countries (except Japan). Mr Cortazzi thinks that it would be useful if the PUS were to give "a plug for social progress" _on these lines.

2. Mr Cortazzi has also queried, with reference to the brief on UK/Hong Kong trade, whether we are being really fair to British exporters in saying that they are apathetic about the Hong Kong market. I put this in the brief on the basis of advice from the DOT. However, Mr Cortazzi is inclined to think that the Governor of Hong Kong tends to make too much of this point in order to cover up for Hong Kong's failure to buy more British goods. In speaking, therefore, to Mr Pao, the PUS might omit any mention of the perfor- mance of British exporters as a factor in explaining the unsatisfac- tory trade balance between the UK and Hong Kong.

18 October 1976

D.F. Milton

D F Milton

Hong Kong Department

Cc:

Mr Cortazzi

Mr Male

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To Dota

HONG KONG: MR Y K PAO'S CALL ON THE PUS

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1. Mr Y K Pao, the Hong Kong shipping owner and businessman, will be calling on the PUS at 3.00 p.m. on Monday, 18 October. I understand that the PUS met Mr Pao during his visit to Hong Kong

in October 1975.

2. Mr Pao makes a point of paying courtesy calls on FCO and DoT Ministers and senior officials when he is in London. Mr Pao last called on the FCO in February, when he saw Lord Goronwy-Roberts for the third time in a year.

3. I understand Mr Pao has not indicated whether he intends to raise any particular subjects with the PUS. It is possible, however, that he may bring up the question of the establishment of a separate Hong Kong Register of Shipping, a question that has for years been unresolved. The record of Lord Goronwy-Roberts' last meeting with Mr Pao also gives an idea of other points that may crop up. It seems very likely, for example, that Mr Pao will ask about a possible extension of the Governor's term of office beyond October 1977. With these points in mind, I attach briefs containing, where appropriate, a suggested Line to Take, on the following:

i) Proposed Hong Kong Register of Shipping;

ii) UK/Hong Kong trade;

iii) Hong Kong and the EEC's GSP;

iv) Hong Kong's economy;

v) The Governor of Hong Kong's term of office.

4. I also attach a personality note on Mr Pao and a copy of the record of Lord Goronwy-Roberts' meeting with him on 16 February last. The relevant departments of the DOT and EID (E) concur, as

appropriate.

14 October 1976

Cc:

Mr Cortazzi

PS/Lord Goronwy-Roberts

D.F. Milton

D F Milton Hong Kong Department

Pozmal

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