TNAG-1312-FCO40-1687-Future-of-Hong-Kong-views-and-involvement-of-Australia--Cana-1984 — Page 136

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opening a Consulate-General in Shanghai (the Chinese already have a Consulate-General in Sydney), and have approval to build a new Chancery and apartment block in Peking. Mr Hawke will also remind Foreign Minister Wu of an invitation issued to him during Zhao's visit last year, to visit Australia himself. The Australians will also discuss educational and sporting contacts, and Chinese participation in Australia's bicentennial celebrations in 1988. Mr Hawke may also discuss the progress of the "China Action Plan", an Australian attempt to help the Chinese identify Australian markets for their exports, in order to help reduce the size of the trade imbalance between Australia and China. This scheme arose out of Zhao's visit, and has been enthusiastically accepted at regional level in China, even though it has not as yet demonstrated any great successes.

11. Mr Hawke will then fly direct to Singapore and then on to Malaysia. This coda to his visit was something of an after- thought, and is seen here very much as a way of keeping up the contacts Mr Hawke made with Lee Kuan Yew and Tan Sri Ghazali Shafie. He also hopes to meet Dr Mahathir. Some bilateral issues will be raised (for instance, in Malaysia, the quota for Malaysian students in Australia). No doubt Cambodia will be discussed, but the Australians see the brief row which developed between themselves and the ASEAN countries in November last year as being over. The Australians expect that Mr Hawke will also discuss the Australian presence at the Butterworth air base in Malaysia, but he will have nothing startling to say. (I am reporting separately, not to all, recent speculation here that the Australians may withdraw from Butterworth.) Officials here attach importance to being seen to consult with their FPDS partners about the Butterworth decision, whatever that decision may utlimately be.

12.

This should be a complex but valuable series of visits for Mr Hawke. He has shown himself to be a deft hand at international affairs, and he seems to be resiting the temptation (to which Mr Fraser, his predecessor, sometimes fell victim) to impose a unifying theme or "initiative" on his visit.

Maus wom

Cc:

FED, FCO

HKD, FCO

SEAD, FCO

DR UPTON

Chanceries:

Tokyo Seoul Peking

Singapore

Kuala Lumpur

Political Adviser, Hong Kong

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