TNAG-1482-FCO40-2036-Economic-and-commercial-value-of-Hong-Kong-to-the-UK-1986 — Page 49

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1 2 AUG 1986

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ARBIST

Foreign and Commonwealth Office

London SW1A 2AH

22 July 1986

D Chesterton Esq

Northern Ireland Office

Whitehall

London SW1A 2AZ

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Cheitels

HONG KONG:

INDUSTRIAL DEVELOPMENT BOARD

FOR NORTHERN IRELAND

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대략

As you may be aware, following the signature of the Sino-British Agreement on the Future of Hong Kong we, the Invest in Britain Bureau of the DTI, the Hong Kong Govern- ment and the British Trade Commission in Hong Kong, agreed that UK regional development agencies should adopt a low- key approach when pursuing inward investment opportunities from Hong Kong. We were most anxious not to be open to the accusation that the UK is seeking to benefit from any uncertainty about the territory's future in the period up to 1997. While a certain level of activity by regional agencies would be regarded in Hong Kong as a normal and acceptable way of attracting investment capital, we recognised that such activity should be neither unduly aggressive nor explicitly aimed at those who might be seeking to move their capital out of the territory because of possible concern for the future. Although it is over 18 months since the Agreement was signed, our position must necessarily remain the same.

Given this policy on inward investment from the territory (which we reaffirmed following the unfortunate incident in May 1985 when a high profile reference to Hong Kong appeared in the medium term strategy document on inward investment published by the IDB) you will understand that we were concerned about the IDB activities described in the enclosed telegram from BTC Hong Kong. We remain convinced that these activities could seriously embarrass both HMG and the Hong Kong Government should there be any suggestion of an aggressive promotional inward investment campaign being pursued in the territory by or on behalf of a UK-based agency. We would be open to accusations, from within Hong Kong and also from the Chinese Government, that, despite our commitment under the Agreement to maintain Hong Kong's stability and prosperity up to 1997, we were prepared to undermine the Agreement by encouraging flighty capital to move from Hong Kong to the UK.

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