TNAG-1160-FCO40-1440-Visit-by-Margaret-Thatcher--UK-Prime-Minister--to-Hong-Kong--1982 — Page 138

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PRIME MINISTER'S VISIT: RECEPTION IN SHANGHAI

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1. Peking telno 449 states the two main alternatives for a reception in Shanghai. We see much advantage in the Prime Minister herself hosting this reception so that it could partly take the form of a return for the Mayor's welcoming lunch and also include British businessmen, some of Sir Y-K Pao's party and resident British teachers and students as well as Chinese academics, scientists etc, who are unlikely to be invited to the Mayoral lunch.

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Opting for either BP or Hong Kong and Shanghai Bank, both of whom have strong claims, would cause offense to the other. Even if either of them were to give the reception in the name of the whole British community there might still be domestic difficulties for us with the Sino-British Trade Council (SBTC). The SBTC Chairman Lord Nelson would be the most appropriate person to host any British business reception in China,but we earlier discouraged him from trying to attach himself to the Prime Minister's party. A high-ranking SBTC delegation led by him will, with full HMG support, now visit China in November. They have been upset to hear of individual captains of industry stealing a march by arranging to be in Shanghai during the Prime Minister's visit; our problems would be compounded if they were to become the Prime Minister's hosts at a reception there.

3. We do not yet know how large a reception would be necessary, but I think it would be difficult to keep it below 100. You will know that Peking have asked the MFA for an estimate of the likely cost per capita.

4. As we need to give BP an answer soon, could you please now consider how best to seek No.10's views on this?

19 August 1982

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Far Eastern Department