Foreign and Commonwealth Office
CONFIDENTIAL
London SW1A 2AH
18 August 1986
Dr A A McLean
Economic Services Branch
Government Secretariat
HONG KONG
Dear Dr. M. Rean,
CHINA RELATIONS COMMITTEE
HRK 0242
2 l
:་
AFB26/8
1. Thank you for your letter of 5 August enclosing your latest report on Hong Kong/China Economic Relations.
2. Our only query is to some extent a political rather than an economic one.
As you may
may know
know Hong Kong's present position within Cocom is a matter of some sensitivy to at least one other Cocom member. Para 29 of your report refers to new firms (joint venture?) establishing themselves in Hong Kong to promote technology transfer to China.
At on e end of the technology spectrum this is merely a continuing and healthy part of Hong Kong's close economic relationship with China: at the other it shades into the diversion of technology to proscribed destinations, which remains at the heart of Cocom's concerns in general and about Hong Kong in particular.
3. It would be helpful to have a more detailed analysis from you (no doubt in consultation with the Political Adviser's Office) of the developments described in para 29 of your report, and your assessment of how far they carry implications for the maintenance of existing Cocom controls over exports from Hong Kong.
4.
I take this opportunity to say in passing how useful we, FED and Economic Advisers find these reports: if we do not comment on them it is purely because their completeness and authoritativeness leaves us nothing left to ask!
cc: C T Wood Esq
Your puncerely.
A M
Buck
Layden
de hayden Kong ogpar
Department
Hong Kong Department
Assistant Political Adviser I
HONG KONG
R E Holloway Esq
BTC HONG KONG
C W Paston Esq
PEKING
Fil
(20
No comments yet.
Private notes are available after approval.