TNAG-1142-FCO40-1422-Hong-Kong-and-the-Falkland-Islands-crisis-1982 — Page 66

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Mr Donald munte.

Copies to:

Mr Fearn, SAMD

Mr Elliott, FED Mr Edwards, WIAD

CONFIDENTIAL

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Mr. Evans first

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HONG KONG SUPPORT FOR HMG IN THE FALKLAND ISLANDS CRISIS

Problem

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1. The Unofficial Members of the Executive and Legislative Coucils

(UMELCO) in Hong Kong wish to demonstrate their support for HMG

in the Falkland Islands crisis, by means of a token contribution

of £20 million. They have agreed to the Governor's suggestion that

the idea should not be taken further at the moment.

Recommendation

2. I recommend that Lord Belstead approve the attached telegram

to the Governor.

Background and Argument

3.

UMELCO have approached the Governor saying that they wish

to demonstrate their support for HMG at this time in both a moral and material way - Hong Kong telegram 531. We asked the Governor

to forestall action on this for the time being (FCO telegram 384).

This he has done Hong Kong telegram 535.

4. It was not at first clear what UMELCO had in mind, but it now

seems that they envisage a donation of £20 million from Hong

Kong Government funds to HMG. Whilst such an offer might be welcome

in some respects, it would present difficulties. It is possible that the Chinese would not look kindly on such blatant support from

Hong Kong for HMG over the Falklands, though FED and the Ambassador

in Peking do not believe that the proposed offer would provoke

any serious Chinese reaction. In any case we do not want to give

any credence to the view, much aired by the Chinese, that the British Treasury gains from Hong Kong.

5.

There could also well be objections in Hong Kong to such a use of public funds. the angle of relations between HMG and

/From

Hong Kong such a donation could later be seen as not entirely

disinterested. UMELCO could make play with such a gesture when dealing with HMG on such matters as students' fees, Nationality Act, consideration of Hong Kong's future etc.

/6.

CONFIDENTIAL