TNAG-1457-FCO40-1981-Relations-between-Hong-Kong-and-China-1986 — Page 138

I

British High Commission Tanglin Road Singapore 1024

RESTRICTED COVERING CONFIDENTIAL

Kenneth C Walker

Your reference

Our reference

ASEAN Region

FCO

Date

30 April 1936

HRR 020/2

าศ

1

1

Dear Ken,

SINGAPORE/CHINA RELATIONS

RECEIVE

INDLA

STRY

3 0 MAY 1986

RY

Laken

AjB 3%

1. Matthew Streeton's teleletter 020/2 of 14 April. Many thanks for a sight of your comments which seem to us to be a sensible pruning of the draft.

2. I attach a minute by Peter Aron on the "Gateway to China" conference, together with some relevant press cuttings. You will see that Peter's minute answers, in paragraph 4, your specific question about the establishment of a Singapore trade office in Shanghai. Peter's minute was written before we received from Peking Tony Insall's letter of 21 March 1986. We subsequently checked again with the Trade Development Board, who are responsible for the Singapore commercial offices in China, to clarify the discrepancy in dates. The TDB Chinese desk confirmed that, although they have had a man in Shanghai since late 1985, the official opening of the office will not take place until June this year. The delay is due to the need to recruit suitable staff. The TDB also confirmed that they have no plans to open an office in Canton but were seriously considering the possibility of an office in Hong Kong.

These

3. I also enclose a table showing the 1985 trade figures. show that the dramatic increase in Singapore's imports from China in 1985 was attributable wholly to the jump in crude oil imports for refining in Singapore. Non-oil imports in fact fell slightly. 1986 crude oil deliveries are likely to be well below last year's levels (paragraph 3 of Phillida Seaward's letter of 9 January to Michael Smith). 1986 trade may therefore show a significant dip over 1985.

1

4. An updated Table I of the draft paper, showing an increase of one in the Chinese official representation in Singapore, is also enclosed.

5. The Gateway to China conference was used as the occasion for the two governments to sign a double taxation agreement, has been negotiated over the last 12 months.

which

/Mr

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