TNAG-0932-FCO40-1151-Relations-between-Hong-Kong-and-China-1980 — Page 46

CONFIDENTIAL

7

Mr Clift supported the idea of bringing Hong Kong questions within the scope of the group as (a) there was a degree of overlap (for example in respect in Guangdong) in IIMG's consideration of the two markets and (b) businessmen

and others travelling out to the region to visit one.country often went on to the other. Ministers also tended to visit both territories at the same time and there was a need for a coordinated planning of their visits. Mr Priston asked whether Mr Clift was propsing that the Group should look only at Hong Kong questions in so far as they affected the relations between China and the UK or to consider as well purely UK Hong Kong items such as the CLP B Station contract relations with BTC Hong Kong etc. He himself would favour discussion of triangular questions but not those of exclusive concern to Hong Kong. Mr Clift considered that some purely Hong Kong questions might warrant discussion in the Working Group.

45 Mr Dick noted the agreement of the meeting that the Group's sphere of interest should be expanded to include Hong Kong. He went on to ask whether

it would be appropriate to merge the two trade advisory groups as well. He felt that the general TAG situation was unsatisfactory and noted that neither Mr Browm nor Lord Nelson was in theory opposed to the idea of a merger. He felt that there was quite a lot of dead wood in both organisations and that they needed a single strong chairman who would be able to ensure much more cost effective advice for businessmen.

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Both Mr Friston and Mr Clift felt strongly that the TAGS should remain separate. The two markets were very different and the types of advice and help required by businessmen were thus also different. Mr Priston agreed that the Hong Kong TAG had too many traders and not enough manufacturers but felt that it had done very good work in the last few years especially in publicising opportunities in Hong Kong. He felt that the Hong Kong TAG was well worth its £1,500 per annum in direct costs and was not sure that its functions would be properly absorbed by the SBTC. Mr Robinson agreed with this latter point but indicated that it was perhaps a more powerful argument for reforming the SBTC than rejecting the notion of merger.

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After some further discussion Mr Dick noted that the feeling of the meeting was that HMG should coordinate its approach to China and Hong Kong through

a joint Working Group but that there should be a separate TAG for each market. He himself considered these two positions to be somewhat contradictory and would prefer both a unified owrking group and a unified TAG. However he was content to accept the feeling of the meeting while nothing that financial pressures might compel the TAGS themselves to msider a merger. Mr Priston suggested that a merger of the HKTAG and SEATAG might be preferrable.

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There was no other business.

Berwyn & Davis

B J Davies CRE 4/2 215-3860

22 June 1980

cc Those present plus:

Mr Palmer ¡Mr Hawtin

Mr Wilks

Mr Hart

D Transport Treasury MAFF

DHSS

Mr d'Ancona D En

Mr Norman ESP

Mr Ashton ODA

Mr Morris

Mr Milne

Mr Mound

Mr Thomson

Welsh Office Scottish Office Embassy Peking CTU BTC Hong Kong