TNAG-0940-FCO40-1159-Visits-by-Foreign-and-Commonwealth-Ministers-and-officials-t-1980 — Page 86

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Ministry also raised this question at the lunch which Timothy George kindly gave in Peking on 25 June. He wondered whether we were interested in opening up in Shanghai and said that he hoped we would. He thought that his Government might be interested in having a Consulate in Liverpool or Manchester and implied that the establishment of an office in Shanghai would involve reciprocity. I made positive noises to Zheng but made the usual point about current financial difficulties. This was also the line I took with those in Shanghai who raised the subject with me.

9. Zheng also wondered whether we would be interested in eventually opening up in Guangzhou. I simply said that it was an obvious possibility in view of the growing links between Guangdong and Hong Kong. The conversation then drifted on to the role of the NCNA in Hong Kong and the various channels of communication between HMG and the Chinese Government. Zheng said that, whilst the link between NCNA and the Political Adviser in Hong Kong was of great importance, it did have the disadvantage of being the first step in a long line of communi- cation. NCNA in Hong Kong reported initially to the NCNA head- quarters in Peking who then passed reports to the Information/ News Department of the MFA, who in turn passed these on to the West European Affairs Department for action. Messages could get garbled in the process although he knew of few instances where this had happened to any serious extent, but direct con- tact between HM Embassy and the Department had the advantage of not involving middle-men and was to be preferred for any formal business, including matters concerning Hong Kong. I doubt that any of this is very new, but I am recording it since it was said by a middle-ranking MFA official who presumably expected it to be noted.

10. By way of a personal comment, I would say that the two days in Shanghai nicely rounded off my visit to China and pro- vided a fascinating contrast with Peking. I am very glad I was able to go and extremely grateful to the Embassy for having made my visit to China such good value for the short time I was able to be there.

cc:

P Morrice

Hong Kong and General Department

I C Orr Esq

Assistant Political Adviser, Hong Kong

FED

CONFIDENTIAL