TNAG-1482-FCO40-2036-Economic-and-commercial-value-of-Hong-Kong-to-the-UK-1986 — Page 86

MR WILDMAN IBB

PS/MR MORRISON

PS/SECRETARY OF STATE

FROM:

G WILLIAMS IBB

Rm 623

Bridge Place

212 5668

25 April 1986

HKK 090/1

RECE

- 6.MAY 1986

12+RA

Token

CC

Mr D J Hall OT3

Mr Cruikshank OT3 Mr Priston IBB

Mr Mingay ID

Mr C Leeks

Hong Kong Dept

Miss A Vassiades

Home Office

Lunar House Miss Starling Dept Employment

LETTER FROM MR BRANDO BRAVO MP: SINGER AND FRIEDLANDER

Mr Martin Brando Bravo MP's letter of 17 April to the Secretary of State asks Mr Channon to agree to a meeting with Mr Coppel, Managing Director of the merchant bank Singer & Friedlander, to discuss his plans to promote manufacturing investment in the UK by wealthy Hong Kong Chinese businessmen. Mr Bravo has already corresponded with Mr Waddington at the Home Office and Mr Clarke of the Department of Employment and has received advice on immigration matters and work permits. The precise purpose of the meeting he now seeks with the Secretary of State for Mr Coppel is not entirely clear, but it would appear to be aimed at getting the Secretary of State's support for his plans to "market" the UK to Chinese businessmen. He may hope that by securing such support it will ease the path for his potential clients and their families to obtain work permits and the right of permanent residence here.

The Governments's policy is to welcome manufacturing investment from overseas where this is of overall benefit to the UK economy. Inward investment from Hong Kong in the UK is not very significant in comparison with that from other countries. The Sino/British Agreement of 1984 on the future of Hong Kong has largely halted the movement of escapist capital overseas and a mood of confidence has returned to Hong Kong. Nevertheless, the need to develop and protect international markets, especially the UK market, will continue to prompt a few businessmen to establish factories abroad, especially in the garment industry. Any active encouragement by HMG to Hong Kong industry to set up in the UK, however, raises the possibility of friction for us with the Peking government. The Invest in Britain Bureau therefore does not actively campaign in Hong Kong and confines itself to acting responsively.

I do not think it is necessary for the Secretary of State to see Mr Coppel: the prospects for any significant Hong Kong Chinese manufacturing investment in the UK are not good: there is moreover the potential risk to our relations with the Chinese government from being seen to give any high

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