TNAG-1748-FCO40-2467-Visit-by-Sir-Geoffrey-Howe--Secretary-of-State-for-Foreign-a-1988 — Page 228

TABADY

File

CONFIDENTIAL

38

SECRETARY OF STATE'S VISIT TO PHILIPPINES (27-29 MAY)

BRIEF NO 16: HONG KONG (INCLUDING HONG KONG/PHILIPPINES RELATIONS)

OBJECTIVES

1.

To emphasise that recent labour problems experienced by British-linked banks may deter existing and potential investors.

2.

[If asked]: to emphasise that implementation of Joint Declaration is progressing smoothly and that Sino-British Co-operation over Hong Kong is excellent.

3.

[If raised]: to underline Hong Kong's good record on treatment of Filipino domestic keepers and express satisfaction at Filipino Government recent decision to left ban on such workers with respect

to Hong Kong.

HRB 027/3

Points to make

19 MAY 198x

Problems experienced by the Hong Kong and Shanghai Banks

[For use with Concepcion)

Understand Hong Kong Bank is most concerned about developments on pay awards for their staff, and management lock-in last year.

Many potential British investors look to the two

British-linked banks for advice. That is bound to be influenced by

the Banks' experience of intervention by the Labour Department on behalf of the Unions, and by the absence of prosecution when the

Unions behave illegally.

Joint Liaison Group (if asked)

Smooth and steady progress.

Nine JLG meetings have produced good results (eg Hong Kong's membership of GATT, travel documentation etc).

Contacts to intensify after JLG takes Hong Kong as its

principal base on 1 July.

Sino-British Co-operation over Hong Kong excellent: good for

CONFIDENTIAL