TNAG-0606-FCO40-754-Monitoring-progress-made-on-planning-papers-on-Hong-Kong-1977 — Page 111

CONFT DENTIAL

COVERING SECRET & PERSONAL

2

natter on which, at some stage, we are likely to require the help of the Treasury, as well as of other outside departments, and I see some advantage in seeking it when replying to Mr Barratt's letter.

4.

I believe that Mr Barratt's enquiry and the complaint that they (the Treasury) are not being kept sufficiently in touch are related to some lobbying of the Treasury by the Governor and Mr Haddon-Cave during their visit to London in December and also during the visit to Hong Kong of Sir D Wass. It would not be in anyone's interest if the Treasury and Foreign & Commonwealth Office were seen to be at odds over our attitude to Hong Kong. I suggest, therefore, that we should make some effort to bring the Treasury closer to our thinking. You might suggest that you talk with Mr Barratt or authorize me (and Mr Maud) to talk with Hr Walker.

5. The formal channel at departmental level of communication with the Treasury is through Financial Relations Department and this is the channel that HKD have used. I see no reason for changing this and I shall, if you agree, discuss with Mr Maud what measures we might take to liaise more closely with the Treasury and particularly to make them understand the "UK dimension" of political pressures

directed towards Hong Kong.

I submit a draft reply to Mr Barratt's letter. FRD and Mr Smith, Senior Economic Adviser, concur.

6.

18 March 1977

cc: Mr Maud (FRD)

Mr Smith (SEA)

JAB Stewart

CONFIDIAL

FOR CRAI