TNAG-1338-FCO40-1770-Visit-by-Margaret-Thatcher--UK-Prime-Minister--to-Beijing-fo-1984 — Page 184

GRS 400

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CONFIDENTIALOP COPY

FM BTC HONG KONG 1211O6Z NOV 84

TO IMMEDIATE F C O

TELEGRAM NUMBER BTC 134 OF 12 NOVEMBER

INFO PRIORITY PEKING

HKK040/57

RECEIVED IN REGISTRY

13 NOV 1984

56

PRIME MINISTER'S VISIT TO CHINA.

BOYD'S TELELETTER OF 1 NOVEMBER.

DESK OFFICER

Т.

Y

INDEX

PA

1. THE ONLY POINTS WE WOULD WISH TO ADD TO PEKING'S COMPREHENSIVE

TELEGRAM 2727 CONCERN

(A) THE CURRENT AND POTENTIAL LEVEL OF BRITISH INVESTMENT IN HONG

KONG (PARA 3 OF T.U.R.) AND

(B) PROJECTS AND PROJECT AREAS IN CHINA WHICH COULD BENEFIT FROM

PRIME MINISTERIAL SUPPORT (PARA 9 OF T.U.R.).

2. ON (A) BRITISH INVESTMENT IN HONG KONG IN THE INVISIBLE AND

ENTREPRENEURIAL SECTOR REMAINS HIGH (INCLUDING THAT OF THE COMPANY WHOSE MIGRATORY ACTIVITIES OCCASIONED DENG'S CRITICISM). OF THE

TOTAL NUMBER OF NEW FOREIGN COMPANIES REGISTERING IN HONG KONG IN

1983 THE UNITED STATES CAME FIRST WITH 64, BRITAIN SECOND WITH 60 AND JAPAN THIRD WITH 41.

3. BRITAIN'S SHARE OF MANUFACTURING INVESTMENT IN HONG KONG, WHICH CURRENTLY STANDS AT 7 PER CENT, HAS NEVER BEEN HIGH. HOWEVER IN WIDER INVESTMENT AREAS SUCH AS INFRASTRUCTURE AND TELECOMMUNICATIONS

BRITISH COMPANIES ARE SHOWING INCREASING INTEREST IN HONG KONG E.G.

OF THE FOUR SERIOUS CONSORTIA TO BUILD AND INVEST IN THE SECOND FIXED

CROSSING 2 AND A HALF ARE BRITISH. CABLE AND WIRELESS'S PURCHASE OF

THE HONG KONG TELEPHONE CO IS ALSO A MOST POSITIVE GESTURE. TO

ENCOURAGE THIS TREND AND TO STIMULATE TWO-WAY TRADE HMG SEND MORE

FINANCIALLY BACKED TRADE MISSIONS TO HONG KONG THAN TO ANYWHERE ELSE IN THE WORLD (22 THIS YEAR) AND IN OCTOBER HELD A MAJOR TRADE

PROMOTION HERE.

4. ON (B) ABOVE THERE ARE TWO ADDITIONAL, PROJECTS IN SOUTHER CHINA WHERE PRIME MINISTERIAL LEVEL SUPPORT MIGHT BE APPROPRIATE.

THEY ARE:

A. THE HONG KONG-CANTON-MACU

4. ON (B) ABOVE THERE ARE TWO ADDITIONAL, PROJECTS IN SOUTHERN CHINA WHERE PRIME MINISTERIAL LEVEL SUPPORT MIGHT BE APPROPRIATE.

THEY ARE:

A. THE HONG KONG-CANTON-MACAU HIGHWAY PROJECT: RDL AND BRITISH SHIPBUILDERS ARE PURSUING THE CONTRACTS FOR THE MAJOR PEARL RIVER BRIDGE CROSSING AND FERRIES RESPECTIVELY. THIS IS A PROMINENT EXAMPLE OF UK COMPANIES' INTEREST IN A MOJOR CROSS-BORDER COOPERATION PROJECT:

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iB.