TNAG-1635-FCO40-2251-Overseas-visits-by-Sir-Geoffrey-Howe--Secretary-of-State-for-1988 — Page 42

TG1AXK (2)

CONFIDENTIAL

SECRETARY OF STATE'S VISIT TO SWITZERLAND: 14-16 MAY

Essential Facts

HONG KONG

1.

The Secretary of State is generally familiar with current Hong Kong issues.

2.

The main economic indicators all suggest that the Hong Kong economy is performing well. In his recent budget the Financial Secretary forecast continued strong growth during 1987. Switzerland

is a major European trading partner. Hong Kong's 9th largest source

of imports worldwide in 1986 and its 14th largest market for domestic exports.

3.

The Hong Kong/Switzerland ASA should be signed in Hong Kong

in June (subject to Chinese agreement to the text). It will be the

second separate Hong Kong ASA.

4.

The Secretary of State is familiar with our extensive

diplomatic exercise to explain to other countries the new BN (0) status and the passport that goes with it to other countries. The Swiss authorities announced their acceptance of it in early December

1986.

CONFIDENTIAL