TNAG-2021-FCO40-2883-Relations-between-Hong-Kong-and-Hungary-1990 — Page 13

RESTRICTED

FM HONG KONG

TO IMMEDIATE FCO

TELNO 2055

OF 040524Z JULY 90

CONFIDENTIAL

HKE 020/13

RECEIVED IN

05 JUL 1990

116235

MDHIAN 7529

ра

INFO ROUTINE PEKING, BUDAPEST, UKREP JLG HONG KONG

34

PEKING TELNO 965 (NOT TO UKREP):HONG KONG HUNGARY: TRADE OFFICE

1. WE APOLOGISE FOR NOT COPYING RECENT TELEGRAMS TO PEKING CAND UKREP). WE ARE NOW REPEATING THEM.

2. WE HAVE IN FACT ALREADY FLOATED INFORMALLY THE POSSIBILITY OF A HUNGARIAN TRADE OFFICE IN HONG KONG WITH NCNA. THIS WAS DONE BY THE POLITICAL ADVISER AT A LUNCH IN EARLY MAY. THERE HAS BEEN NO ADVERSE REACTION. AS PEKING WILL ALSO BE AWARE (BUDAPEST TELNO 244, COPIED TO THEM) THE HUNGARIANS CLAIM TO HAVE SPOKEN TO THE CHINESE AMBASSADOR IN BUDAPEST WHO SAID THAT THE PRC WOULD HAVE NO OBJECTIONS TO HUNGARY OPENING A PERMANENT OFFICE IN HONG KONG. WE NOW PLAN TO LET NCNA KNOW THAT THE POSSIBILITY THAT WE MENTIONED TO THEM PREVIOUSLY IS FIRMING UP AND THAT A TRADE OFFICE IS LIKELY TO BE ESTABLISHED SOON.

3. WE AGREE HOWEVER WITH PEKING THAT IT WOULD BE WISE NOT THE MAKE THE ESTABLISHMENT OF THIS OFFICE A HIGH PROFILE ISSUE DURING THE PM'S VISIT TO HUNGARY. QUITE APART FORM THE FACT THAT IT IS A MATTER BETWEEN HKG AND THE HUNGARIAN GOVERNMENT IN A FIELD IN WHICH WE ENJOY AUTONOMY, AN ANNOUNCEMENT DURING THE PRIME MINISTER'S VISIT COULD BE SEEN BY THE CHINESE AS A CASE OF BRITAIN USING HONG KONG FOR ITS OWN DIPLOMATIC PURPOSES.

4. GIVEN ALSO THE GENERAL SENSITIVITY ABOUT EVEN HONG KONG'S TRADE RELATIONS WITH OTHER COUNTRIES, UKREP JLG, WHOM WE HAVE CONSULTED, ARE DISINCLINED AT PRESENT TO MENTION THE HUNGARIAN OFFICE TO THE CHINESE SIDE OF JLG. SIMILARLY AN APPROACH IN PEKING MIGHT RISK AROUSING SENSITIVITIES WHICH WE HAVE SO FAR MANAGED TO AVOID WITH NCNA. WE WOULD PREFER THEREFORE, AT LEAST IN THE FIRST INSTANCE, TO RESTRICT THE APPROACH TO THE PA/NCNA CHANNEL.

5. ALL OF THE ABOVE INCIDENTALLY REINFORCES OUR VIEW THAT WE WOULD DO BETTER NOT TO HAVE A FORMAL AGREEMENT ON THE ESTABLISHMENT OF THE OFFICE WITH THE HUNGARIANS. THE CHINESE MIGHT VIEW THAT AS AN IRO AND SEEK DISCUSSION IN THE JLG.

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