TNAG-0744-FCO40-948-Relations-between-China-and-Hong-Kong-1978 — Page 34

GR 220

CONFIDENTIAL

FM HONG KONG 200709Z DEC 78

CONFIDENTIAL

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R2CC1YL

1.

..3. 51

TO PRIORITY FOREIGN AND COMMONWEALTH OFFICE

TELNO.1464 OF 20 DECEMBER,

20/12

PEGILTRY Action Taken

OFFER

INDIK

No

to

INFO PRIORITY: PEKING, WASHINGTON, HONG KONG GOVT OFFICE LONDON,

1.

CHINESE MINISTER OF FOREIGN TRADE.

THE CHINESE MINISTER OF FOREIGN TRADE, LI CH'IANG, HAS SPENT THE LAST FEW DAYS IN HONG KONG (AND MACAU) ON HIS WAY BACK TO CHINA FROM THE PHILIPPINES. HE HAS BEEN TALKING TO LARGE NUMBERS OF BUSINESSMEN, BOTH CHINESE AND NON-CHINESE. HIS GENERAL MESSAGE, WHICH YOU WILL HAVE SEEN FROM PRESS ACCOUNTS,

IS THAT CHINA IS NOW PREPARED TO ACCEPT ANY FORM OF NORMAL INTERNATIONAL TRADING PRACTICE, INCLUDING GOVERNMENT TO GOVERNMENT LOANS AND JOINT VENTURES WITH UP TO 49 PER CENT FOREIGN CAPITAL. HE HAS MADE A POINT OF TALKING ABOUT THE IMPORTANCE OF HONG KONG IN HELPING CHINA CARRY OUT THE ''FOUR MODERNISATIONS' POLICY,

2. YESTERDAY LI CALLED ON ME AT FLAGSTAFF HOUSE AT MY INVITATION, FOLLOWING PRESS ENQUIRIES, THIS IS REPORTED IN A NUMBER OF NEWSPAPERS THIS MORNING. LI IS THE FIRST CHINESE MINISTER TO CALL ON A GOVERNOR SINCE 1949, HIS WILLINGNESS TO DO SO IS PART OF THE PATTERN OF FRIENDLY GESTURES BY THE CHINESE WHICH HAS BEEN BUILDING UP OVER THE PAST FEW MONTHS,

MACLEHOSE

FILES

HK7GD(6).

FED TRED. FRO. ECON D.

PS

PS/MR JUDD.

MA BUTLER

MR MURILAY MR THOMAS.

MR HAYES

PS/LORD GORONWY RONENTS.

Ps/pus SIRA DUFF

MIRCORTA221

[COPIES SENT TO DOT DOT]

COPIES TO

ECGD

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CONFIDENTIAL