TNAG-1252-FCO40-1585-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 91

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IMPORTANT RELATIONSHIP WITH CHINA. BILATERAL TRADE WITH CHINA IS NOW MOVING WARDS ONE BILLION AUSTRALIAN DOLLARS ANNUALLY WITH A HEALTHY BALANCE IN AUSTRALIA'S FAVOUR. CHINA IS AN IMPORTANT MARKET FOR AUSTRALIAN EXPORTS OF SUGAR AND WOOL AND COULD BECOME IMPORTANT IN THE LONGER TERM FOR WHEAT AND RAW MATERIAL EXPORTS. I WOULD EXPECT THE HAWKE GOVERNMENT TO BE EVEN MORE INTERESTED THAN ITS PREDECESSOR IN DEVELOPING THIS RELATIONSHIP.

4. APART FROM THESE AUSTRALIAN CONSIDERATIONS, I THINK THAT WE FOR OUR PART SHOULD BEAR IN MIND THAT THERE COULD BE RISKS IN SEEKING TO INVOLVE THE AUSTRALIANS TOO CLOSELY IN NEGOTIATIONS WITH THE CHINESE ABOUT HONG KONG. APART FROM THE POINT IN PARA 2 ABOVE, WE WOULD OF COURSE NOT BE IN A POSITION TO MONITOR THE WAY IN WHICH THE AUSTRALIANS PUT SPECIFIC POINT S ACROSS OR TO ASSESS DIRECTLY THE CHINESE REACTION TO THEM. IMPORTANTLY, THE MORE WE GAVE THE AUSTRALIANS

PERHAPS MORE THE IMPRESSION

THAT WE NEEDED THEIR HELP IN ACHIEVING A SUCCESSFUL OUTCOME WITH THE CHINESE, THE MORE WE WOULD BE DRAWN INTO A PROCESS OF CONSULTATION WITH THE AUSTRALIANS ABOUT THE BEST WAY TO PLAY THE HAND.

5. IN SUM THEREFORE ! SUGGEST THAT WE SHOULD GIVE THE AUSTRALIANS ENOUGH INFORMATION TO SHOW THAT WE RECOGNISE THAT THEY HAVE IMPORTANT INTERESTS IN HONG KONG AND TO KEEP THEM SWEET BUT WE SHOULD BE WARY OF TELLING THEM TOO MUCH ABOUT THE DETAIL OF OUR NEGOTIATIONS WITH THE CHINESE OR OF TRYING TO INVOLVE THEM IN

THE NEGOTIATIONG PROCESS.

MASON

LIMITED

HD / HK+GD HOLFED

HDI PUSD

PS/PUS

MR WRIGHT

MR GIFFARD

MR DONALD

+ SPO

༡

!

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