TNAG-1391-FCO40-1863-Future-of-Hong-Kong-briefing-for-meetings-and-visits-1985 — Page 140

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NOTE OF INITIAL CALL ON DR WILSON BY NEW CHINESE AMBASSADOR, MR HU DINGYI, 23 APRIL

JOINT LIAISON GROUP

1.

We therefore hoped that a practical way could be found quickly to overcome this problem. The Ambassador noted Dr Wilson's remarks and agreed that it was important to find a practical solution. The Foreign Secretary had already raised this issue with him.

TRADE

2.

Dr Wilson underlined the importance HMG attached to developing bilateral trade. We would actively be encouraging British companies to do business with China. Many of them had doubts, however, about Chinese law and commercial practices. One way to promote confidence was through early signature of an Investment Promotion and Protection Agreement. It would be particularly useful if this could be given prominence through signature during the Chinese Premier's visit. The Chinese negotiating team would visit Britain in May. We hoped that any outstanding difficulties could quickly be resolved then; and that the Ambassador would impress upon his authorities the importance of early signature. The Ambassador noted Dr Wilson's remarks and agreed that early signature was important.

CHINA INTERNAL

3. The Ambassador commented that he had been impressed on his return to China by the extent of the changes there. This year the Government would be firmly concentrating on two aspects of the reforms; wage reform and price adjustments. Although the authorities were firmly committed to the current reforms, they realised that there was a need for caution in their implementation, both to ensure their success and their general acceptance.

Far Eastern Department

Foreign and Commonwealth Office

Distribution:

FED

HKD

TRED

Peking

Hong Kong

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