TNAG-0938-FCO40-1157-Visit-of-John-Nott--Secretary-of-State-for-Trade--to-Hong-Ko-1980 — Page 73

BRIEF 10

BRIEF FOR THE MINISTER FOR TRADE'S VISIT TO HONG KONG

5 SEPTEMBER 1980

30 AUGUST

HONG KONG/CHINA TRADE

BACKGROUND POINTS

1.

Hong Kong has for many years been China's window on the

western world.

2.

Hong Kong provides between a third and a half of China's

foreign exchange.

3. China's new leadership is intensifying its efforts to extract benefits from the Colony's continued existence.

4.

Our relations with China over Hong Kong are excellent.

China shares our interest in the Territory's stability and

prosperity.

5.

The provinces adjacent to Hong Kong have established. special enterprise zones opening the way for a number of joint ventures between Hong Kong companies and the Chinese worth

£105 million.

Although there will often be no substitute to going to Peking, it is evident that those seeking involvement in the

southern provinces may benefit from involving Hong Kong companies in a triangular arrangement or using Hong Kong as a base.

6.

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