TNAG-1564-FCO40-2129-Future-of-Hong-Kong-nationality-and-passports-Hong-Kong-(Br-1986 — Page 139

DEPARTMENT OF TRADE AND INDUSTRY

AIR DIVISION 3

20 Victoria Street London SW1H ONF

Telex 8811074/5 DTHQ G

Telegrams Advantage London SW1

Telephone Direct Dialling 01 - 215

GTN

215

3011

Switchboard 01-215 7877

5862

Mr D B Sykes The White House

Links View

Onchan

Isle of Man

HHH 3401 нни

34011

RECEIVELY. BEARTHY

2 € APR 1986

Your reference

Our reference

Date

AE/326/025

15 April 1986

Dear Mr Sykes

525

Thank you for your letter to the Prime Minister dated 15th February 1986 expressing your concern about the level of trade with China, particularly in aerospace goods, and the question of the future citizenship of the Hong Kong Chinese population.

*

I have been asked to reply on the aerospace side but the citizenship issue is a matter for the Foreign and Commonwealth Office to whom I have passed on your letter along with a copy of this reply.

I feel I must begin with an apology for the delay you have experienced in receiving a reply. I do not know where the hold up has been; your letter has been with my office for only a few days, but please accept my apologies.

Whilst it is always possible to do better, nonetheless, the UK aerospace industry is very successful and at the present time contributes over 5% of the total of UK exports, a figure, incidentally, similar to that of the United States industry. This country's exports of aerospace goods have been growing since 1946 at an average of 3% per annum and last year were valued at a record £4.2 billion a figure second only to the chemical industry in the field of UK manufacturers.

Her Majesty's Government and we in Air Division in particular are very

We conscious, as you are, of the immense potential of the Chinese market. are aware of the tremendous growth in air travel that has taken place over recent years.

However, the unpredictability of the purchasing attitudes of the Chinese makes the long term forecasting of demand for aerospace products, and other goods, very uncertain. UK companies have had recent important successes which are hopeful signs for the future, notably the sale of BAe 146s, Shorts 360s and Airbus products.

On the Government side action has already been taken to remove barriers to trade that will enable aerospace equipment to be more easily exported to China.

We recognise that there is great potential for trade in the current climate and we have every hope that with hard work and inventiveness of people such as yourself who work in the industry, the future will bring great rewards.

Yours sincerely

M.O. Ralph

M O Ralph

V5599