TNAG-1252-FCO40-1585-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 107

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CONFIDENTIAL

བ་བ་ལ་་་་

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PA

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Mr Warren Cooper, New Zealand Minister of Foreign Affairs and Overseas Trade, called on the Governor yesterday. He was accompanied by Mr M Norrish (Secretary of Foreign Affairs), Mr J H Clark (Secretary of Trade and Industry) and Mr F A Muller (N Z Commissioner in Hong Kong).

2.

After initial pleasantries, the Governor gave the Minister a potted general account of developments on the future since 1979. He concluded by saying that, for many people, the future was not the main problem at the moment: the economy and the effect of it on' the public was of equal if not greater significance.

|| 3.

The Minister appeared to be well briefed. He raised few questions on the future but, instead, wished to know how Hong Kong worked, economically and socially, and what constituted confidence. He was interested in the way budgetary strategy was developed, the relationship between the Governor and the Financial Secretary in its development, and in the principle of "positive non-interventionism". There was then a general discussion on Hong Kong's social programmes.

4.

The Minister saw the Far East as New Zealand's future export market and seemed to be attempting to establish the extent to which, if at all, the political "uncertainty" of Hong Kong might outweigh its obvious assets and make Hong Kong less attractive than other countries in the region e.g. Singapore, for joint venture investment opportunities. For this reason, a successful settlement on the future of Hong Kong would be welcomed by New Zealand.

5.

The Governor was very upbeat about Hong Kong: its powers of rapid economic recovery when the US economy improved; its value to China as a unique international financial and commercial centre for which a substitute could not be found quickly; its advanced technology; its proven and trusted administration; and its excellent relationship with Guangdong.

6.

The call lasted about an hour. The Minister was primarily interested to find out (and did so) how Hong Kong really operated and to understand the various elements which, together, made Hong Kong successful. He was interested and clearly impressed.

G.F. 82

CONFIDENTIAL

(G A Higginson)

PS/GH 3.3.83