TNAG-1370-FCO40-1816-Relations-between-Hong-Kong-and-China-1985 — Page 4

布政司署

香港下亞厘道

** OUR REF.:

* YOUR REF.:

CONFIDENTIAL

HKK 020/10

¿CEIVED IN REGISTRY 2 1 NOV 1985

W. G. Ehrman Esq., Hong Kong Dept.

FCO

Dear Witham,

2.

PA

INTRY

in Taxen

AgB2Y1

15.

GOVERNMENT SECRETARIAT

LOWER ALBERT ROAD

HONG KONG Letter sent.

in Lackber Encounes not

Gead. I see

27.4

harn in

expert dialogue if Man Hallett, have time Grateful if you

could 5 November 1985 dhe i his

views & draft

.D. They mas for info. ,.W

2

PA

Hong Kong/China Economic Relations

Please refer to my letter of 20 September.

brief reply from T. MAM.

I enclose 3 papers prepared by the Economic Analysis Division of Economic Services Branch for the China Relations Committee which you and copy addressees may find of interest. The first two papers (on developments in Hong Kong/China economic relations and on China's foreign exchange controls) drew extensively on Rod Wye's reporting and on Nick Hallet's comments on the World Bank report on China, as well as on our own trade statistics. They should not therefore be used as collateral evidence to support conclusions already drawn from the same raw material.

3.

It occurs to me that there would be advantage in establishing direct communication between Dr. Alan McLean

(Deputy Secretary for Economic Services II), who heads the Economic Analysis Division of Economic Services Branch, the Embassy, and Nick Hallet. From my own time in overseas posts, I know that feedback from customers of one's reporting is too often a rather scarce commodity. There may well be statistical and other material available to Alan McLean and his team which would be of interest; there will also be aspects of the Chinese economy on which Alan McLean would welcome additional reporting and assessment. We know that resources are limited and stretched, and Alan McLean understands that it may not be possible to meet all requests. But on balance, I think that a direct dialogue of this kind could well produce some useful results. I am therefore offering the enclosed papers as preliminary stimulus to comment. Any views which you or other copy addressees may have could be addressed to Alan McLean and copied to Chris Wood in this office.

13/4

40243

Leve

c.c.

Richard.

(R. P. Margolis)

Deputy Political Adviser

N. O. Hallet Esq., Economic Advisers R. D. Wye Esq. HM Embassy! Peking

CHM EDENTIAL