TNAG-1416-FCO40-1897-The-financial-activities-of-Xu-Jiatun--Head-of-New-China-New-1985 — Page 8

[CJIADK]

CONFIDENTIAL

Foreign and Commonwealth Office

London SW1A 2AH

RP Margolis Esq

Deputy Political Adviser

Government Secretariat

HONG KONG

Dew Richard,

Telephone 01-

233 4439

Your reference

SCR2/3571/75TI

Our reference

HKK 104/3

Date

29 July 1985

"

COMMERCIAL ACTIVITIES OF XU JIATUN: POSSIBLE JOINT VENTURE

1.

Thank you for your interesting teleletter of 20 July on this subject. You will since have received our Te lno 1077, indicating that we see no objection to the line you put forward in paras 4 and 5 of your teleletter.

2.

Your

latest

latest teleletter, coming on top of our earlier exchanges in May over NCNA's involvement in the rescue of the "Tin Tin Yat Pao", suggests that

suggests that we shall probably be hearing more of NCNA's commercial activities. Could you please ensure that we are in formed if any further evidence comes to light that NCNA are, or are intending, to set up any kind of subsidiary, wholly-owned or otherwise, in Hong Kong.

Чи сей

CE Leeks

Hong Kong Department

CC

J Smith-Laittan Esq, Acting Senior British

Trade Commissioner, Hong Kong

D G Blunt Esq, British Embassy, Peking

HICK 104/3

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30 JUL 1985

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INDIEX

PA

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PP BTC HONG KONG

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FM FCO 251845Z JUL 85

TO IMMEDIATE HONG KONG

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TELEGRAM NUMBER 1077 OF 25 JULY

INFO PRIORITY PEKING, BTC HONG KONG

34609 - 1

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ска

MARGOLIS' TELELETTER OF 20 JULY AND PEKING TELNO 94:

COMMERCIAL ACTIVITIES OF XU JIATUN: POSSIBLE JOINT VENTURE

NO OBJECTION TO LINE PROPOSED IN PARAS 4 AND 5 OF TLUR

1.

HOWE

NNNN

DISTRIBUTION

LIMITED

HKD

DR WILSON

1

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STRY * Taken

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A

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MISTRY

INDEX

PA

Action

Dr Wilson

FROM: A C Galsworthy,

DATE: 24 July 1985

HKD

HONG KONG: FINANCIAL ACTIVITIES OF MR XU JIATUN

PROBLEM

1.

We need to reply to the Hong Kong Acting

Adviser's

of teleletter

20 July

on the

line

St. betur fent

we need ale

Cetter to

24/7

implement for. Wimmi's Dziective.

I'm to Manythin

Political d

that Hong Kong

propose to take regarding the financial activities of Mr Xu

Jia tun of the NCNA.

16

М

RECOMMENDATION

2.

I recommend that we agree to Hong Kong's proposed line. I

telegram to Hong Kong to this effect.

submit a a draft

BACKGROUND

3.

You may

recall that in my submission of 16 May I

summarised the personal financial involvement of Mr Xu Jia tun

in attempts to salvage the ailing left wing news paper "Tin

Tin Yat Pao" by

guaranteeing a communist bank loan to the

paper. Hong Kong had at that stage proposed to speak to Mr

Xu,

in the event that the

to forewarn him that his

matter, and that there was

newspaper seemed about to collapse,

involvement would be purely a civil

no basis upon which the Hong Kong

Government could legally intervene to protect him.

4.

We subsequently discussed Hong Kong's proposal and

concluded that, in view of the unlikelihood of a communist

and in view also of the risk that

bank embarrassing Mr Xu

such an approach might prompt NCNA to seek formal privileges

and immunities, no approach

subsequently accepted our view.

should be made.

5. Hong Kong have now reported a

Hong Kong

Ltd, who

conversation on 28 June

between British Trade Commissioner and a British businessman,

the Managing Director of Kowin China Investments

claimed to have been invited by Mr Xu to form a join t ven ture

wholly-owned subsidiary of NCNA

between

Kowin

an d

a

in

order

CONFIDENTIAL

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