TNAG-0938-FCO40-1157-Visit-of-John-Nott--Secretary-of-State-for-Trade--to-Hong-Ko-1980 — Page 227

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BRIEF NO 3

SECRETARY OF STATE'S VISIT TO HONG KONG 26 30 JANUARY 1980

BRIEF: UK/HONG KONG TRADE AND INVESTMENT

Line to Take

The visit will provide a good opportunity to help counteract the rather critical view of the British economic and industrial performance often held in Hong Kong. In addition to the more encouraging news about the British economy, the Secretary of State could draw on the following:

1.

British industry has the expertise and technology to help upgrade all sectors of Hong Kong industry by supplying advanced machinery and equipment, as well as large-scale projects.

2. There are encouraging signs that UK industry is now giving the Hong Kong market the serious attention it deserves. The resurgence of British interest in many sectors is helping us recover some of the lost ground.

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3. Both the UK and Hong Kong are dependent upon trade. Kong is our second biggest market in SE Asia after Japan and we welcome the recent substantial growth in trade between us.

4. The opening-up of China's market to the West is one area in which I can see increasing potential for progress and co-operation between Hong Kong and the UK. I hope that British and Hong Kong companies can take advantage of the opportunities to collaborate on projects in China.

5.

HMG will continue to adhere to its traditional free trade policy. We believe that protective measures must be reserved for the most serious problems which need exceptional remedies.

6. UK investment in Hong Kong. We are aware that the response from UK industry has been poor compared to the Americans and Japanese. The decision to invest overseas must be for the commercial judgement of individual firms.

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