TNAG-1899-FCO40-2697-Future-of-Hong-Kong-briefing-1989 — Page 95

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Background

References: A:

B:

CONFIDENTIAL

Lord Young's minute of 16 February to the Prime

Minister

Private Secretary's minute of 28 February,

recording the Secretary of State's discussion with Lord Young

British trade and economic links with Hong Kong

1.

British exports to Hong Kong in 1988 amounted to HK$ 11,743

million (11.3% increase over 1987); while Hong Kong's domestic

exports to the UK amounted to HK$ 13,920 million (21.7% increase

over 1987). In 1988 British exports to China totalled £188 million (10% down on 1987); while Hong Kong re-exports to China included

goods of UK origin worth HK$ 1,414 million in 1988 (30.7% increase

over 1987).

2. Lord Young and Lord Glenarthur will be co-hosting an inaugural

dinner at Lancaster House on 21 March for the Anglo-Hong Kong Trust.

The guests will include (from Hong Kong) Li Ka-Shing and about a

dozen other prominent Hong Kong Chinese businessmen. The UK guests

will include Lord Hanson, Lord Derwent, Sir Adrian Swire,

Sir Evelyn de Rothschild and Lord McAlpine.

3.

Lord Young's minute of 16 February sets out his idea of

appointing a businessman with direct experience of the Hong Kong

market to act as a London-based Trade Commissioner. He would visit

Hong Kong frequently but would spend most of his time in the UK promoting the Hong Kong market. Lord Young's ideas are not yet fully formed. The financial implications would be for the DTI to

bear. We have consulted the Senior British Trade Commissioner in

Hong Kong, whose initial reaction to the idea is generally

favourable. He has suggested that a part time appointment would be

adequate; that a title other than "Trade Commissioner" might be

devised, so as to avoid confusion with his own role; and that

visits to the territory should be made after consultation with the

Senior British Trade Commissioner. We agree with these points:

CONFIDENTIAL