TNAG-1997-FCO40-2844-Harassment-of-Hong-Kong-businessmen-in-Shanghai-1989 — Page 18

CONFIDENTIAL

Foreign and Commonwealth Office

London SW1A 2AH

4 September 1989

HKD 40016.

Dan

Caroline

Harrassment of Hong Kong Businessmen in Shanghai

Thank you for your letter of 9 August recording the Prime Minister's concern about the questioning by the Chinese authorities of two Hong Kong Chinese businessmen working for the US-owned company, Dow Chemical, in Shanghai in connection with the activities of their local staff in support of the pro-democracy movement during the June disturbances.

On the advice of our Embassy in Peking we pursued this case initially without co-ordinating action with the Americans, given their own current difficulties with the Chinese. We kept in close touch with the Embassy in Peking and, through the Consulate General in Shanghai and the Hong Kong Government, with Dow Chemical. We delayed early representations to the Chinese authorities on the advice of the Embassy and at the request of Dow Chemical, although we made clear we would pursue them if the case was not resolved satisfactorily in reasonable time. Happily, it has been.

Both businessmen have since left China and are now back in Hong Kong. The more senior of the two was assured by the Shanghai authorities before his departure that he was not held responsible for the activities of his staff. The company are now considering whether the two men should return to China.

Although the individuals concerned were questioned,

at no point were they detained or arrested by the Chinese authorities. This case was therefore less serious than initially thought or than some other recent cases involving Hong Kong people in China. We will continue to keep a very close eye on all cases of harrassment of Hong Kong residents in China.

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You

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(R N Peirce) Private Secretary

Miss Caroline Slocock

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CONFIDENTIAL