TNAG-1482-FCO40-2036-Economic-and-commercial-value-of-Hong-Kong-to-the-UK-1986 — Page 34

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OF 0210152 OCTOBER 36

STRICTLY PERSONAL FOR HUM, HKD, FROM GOVERNOR

INVESTMENT BY HONG KONG PEOPLE IN THE UK

1.

See√ 31

YOU SHOULD KNOW THAT WHEN PETER MORRISON MP, THE NEWLY APPOINTED DEPUTY CHAIRMAN OF THE CONSERVATIVE PARTY, CALLED ON ME ON 22 SEPTEMBER, HE SPOKE WITH SOME FORCE ABOUT WHAT HE DESCRIBED AS FCO EFFORTS TO DISSUADE THE DT FROM ATTRACTING

HONG KONG BUSINESS AND INVESTMENT TO THE UK. (HE MENTIONED

YANGTZE KIPANG'S PROJECT IN MERSEYSIDE AS AN EXAMPLE.) HE SAIND

THAT HE REALISED THE NEED NOT TO ROCK THE HONG KONG BOAT, BUT IF

HONG KONG PEOPLE WERE ANYWAY PLANNING TO INVEST IN EUROPE, HE

COULD NOT SEE WHAT WAS WRONG #IN QUIETLY AND DISCREETLY TRYING

TO ATTRACT THEM TO THE UK. HE ADDED THAT HE FAVOURED THE IDEA

OF GIVING PASSPORTS TO RICH PEOPLE WHO CREATED JOBS IN THE UK,

WHETHER THEY CAME FROM HONG KONG OR ANYWHERE ELSE IN THE WORLD.

2.

** SPOKE IN FAMILPAR LINES ABOUT THE POLITICAL SENSITIVITIES

OF HMG BENG SEEN TO BE ATTRACTING INVESTMENT OUT OF HONG KONG

AND OF THE NATIONALITY HSSUE. ONCE MR. MORRISON IS SETTLED

HNTO HIS NEW JOB, HE COULD WELL TRY TO CHANGE THE CURRENT POLICY ON THIS. HE MAY BE ENCOURAGED IN THIS BY SOME REMARKS MADE BY

HONG KONG BUSINESSMEN AT A DINNER HOSTED BY SBTC WHICH MAY HAVE

LED HIM TO BELIEVE THAT THESE SENSITIVITIES ARE NOW REDUCED.

3. AS YOU WILL APPRECIATE, DISAGREE WITH THIS VIEW, MY OWN BELIEF IS RATHER THAT SENSITIVITIES WILL INCREASE BETWEEN NOW

AND 1997, PARTICULARLY DURING THE 1990'S. ANY IMPRESSION AT THAT

TIME THAT HMG WAS TRYING TO ATTRACT INVESTMENT AWAY FROM HONG KONG

WOULD BE DAMAGING. WOULD THEREFORE URGE THAT THE PRESENT POLICY

UNDER WHICH HMG DO NOT OVERTLY ENCOURAGE INWARD INVESTMENT FROM

HONG KONG TO THE UK SHOULD CONTINUE. SEE NO NEED TO GO FURTHER,

AS MR. MORRISON SUGGESTED HAD BEEN THE CASE. IT WOULD NOT BE

NECESSARY TO REBUFF EXPRESSION OF INTEREST THAT MAY BE MUTUATED

BY HONG KONG BUSINESSMEN PROVIDING THAT THEY ARE DEALT WITH IN

ACCORDANCE WITH NORMAL PROCEDURES, AND ON THEIR COMMERCIAL MERITS.

IMAGINE HOWEVER THAT YOUR APPROACH TO THESE MATTERS IN LONDON.

HAS IN ANY CASE BEEN IN ACCORDANCE WITH THESE GUIDELINES: AND THAT

T IS RESISTANCE TO THE SPECIAL TREATMENT ON PASSPORTS WHICH LIES

AT THE ROOT OF PETER MORRISONS' COMMENTS.

YOUDE

HMLNAN 2696.

LIMITED

HKD

MR WILSON

CONFIDENTIAL