SECRET
SIR Y K PAO'S CALL ON THE SECRETARY OF STATE: 12 NOON ON 21 MAY 1982
ESSENTIAL FACTS
A
attached 1.
Personal
Biographical Note attached. Sir Y K is very well connected
He provides an unofficial channel for
internationally.
communication between ourselves and the Chinese, but his usefulness
or reliability should not be overrated. It is not always clear
what is his own (wishful?) thinking and what is an accurate
reflection of the views of Chinese leaders. At times his ideas
are difficult to follow. Needs restraining.
Sir Y K's last call on an FCO Minister was on 16 March on
Lord Carrington. Copy of the record attached. He was to have
called on Mr Atkins in early April but this was cancelled because
of Falklands crisis.
2.
B
124
Future of Hong Kong
3.
Secretary of State knows the background to this sensitive
and complex problem. Important not to give Sir Y K the impression
that HMG regard him as an official intermediary on this subject.
Important not to raise expectations in Hong Kong (and UK) that
the Prime Minister's visit will lead to immediate solutions.
Both sides focussing on the problem, but no sign from the Chinese
that they understand the link between investor confidence, independent
Hong Kong dollar and British administration.
SECRET
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