TNAG-1594-FCO40-2179-Honk-Kong-leading-personality-Sir-Yue-Kong-Pao--businessman-1987 — Page 34

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CALL ON THE MINISTER BY SIR Y.K. PAO: 3.30 PM ON WEDNESDAY 14 OCTOBER 1987.

OBJECTIVES

i) To present to Sir Y K Pao a photograph taken at the Minister's reception

for the first students to arrive for awards under the Sino-British friendship

Scholarship Scheme (SBF SS);

ii) (If issue raised by Sir Y K Pao) to explain why it is difficult to agree to the appointment of Mr William Lee as Honorary Secretary to the SBFSS

Commission;

iii)

if necessary, to propose that each party to the Scheme should be allowed to appoint a third Commissioner (so that the Foundation could appoint Mr Lee).

POINTS TO MAKE

1.

Was delighted to hold Reception on 17 September as you had proposed.

Present photograph taken with Chinese Ambassador (Mr Ji Chauzhu) and Mr

William Lee.

2.

Scholarship Scheme getting off to good start. Impressive Chinese

Students. Sure of warm welcome in Britain. Ideal way of fostering closer ties between Britain and China. Greatly appreciate Sir Y K Pao's generous initiative (If necessary, draw, attached Points to Make for Reception.)

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On proposed appointment of Mr Lee as Honorary Secretary.

3.

(If raised) Regret this misunderstanding has occurred. Anxious to clear

it up to maintain excellent spirit of Scheme to date.

4.

This proposal departs significantly from understanding reached during

negotiation of Memorandum of Understanding that no Secretariat should be

needed. Therefore would expect Commission to be given time to consider it in writing before discussion at meeting.

5. HMG consistently seeks to keep administrative activities and costs to minimum in organisations it belongs to. We attached importance to joint decision (by SEDC, Foundation and ODA) not to have Secretariat. Experience since has confirmed none is necessary since each party supports its own Commissioners and meets its own costs. This is most efficient solution.