TNAG-1951-FCO40-2779-British-capital-investment-in-Hong-Kong-1989 — Page 147

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Background

4.

The arguments against privatisation of the post of Senior

British Trade Commissioner are set out in Mr McLaren's minute of

25 January. DTI officials fully accept these arguments. So (now)

does Lord Young: DTI officials have confirmed that after

considering the arguments he has concluded that Mr Holloway's

successor should indeed be a civil servant and that the idea of

finding a high level businessman to do the job need not be

pursued.

5.

I have explored with the DTI whether there are any

alternative ways of accommodating Lord Derwent's desire to see

greater involvement by a business figure in the promotion of trade

and economic links with Hong Kong. One possibility would be to second a businessman to the Trade Commission, perhaps as deputy to

the Senior British Trade Commissioner. Secondments between the

Diplomatic Service and industry are not uncommon, although such a

relatively senior secondment would be very unusual. After

discussion with DTI officials, I have concluded that this idea is

not worth pursuing: it would not have the impact in Hong Kong which Lord Derwent evidently hopes for and would probably be seen only as

nor is it clear whether the role of such a secondee would

comfortably mesh in with that of the Senior British Trade

Commissioner. The DTI are in any case not enthusiastic: nor, it

appears, is Lord Young.

a sop;

6.

Another possibility, however, to which I gather Lord Young is

personally attracted, would be to set up a new London-based post,

filled by a suitably high-powered British businessman, who would

operate separately from the DTI and the Hong Kong Trade Advisory

Group. It is not clear whether and to what extent such a post

would be officially funded. The function of such an individual

would above all be to promote British exports to Hong Kong, but his

remit could include other activities, such as the discreet

encouragement of Hong Kong investment in this country, along the

lines favoured by Lord Derwent.

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/7. DTI