Background
CONFIDENTIAL
References
A:
Governor's telno 660
B:
Budapest telno 145 reporting the Secretary of
State's meeting with the Hungarian Foreign
Minister
C:
D:
Record of call by Mr Kovacs on Mr Tait, 28 March
Hong Kong telno 244
1. Since November 1989 the Hungarians have made a number of
approaches in London, Budapest and Peking about the possibility of a
relaxation of the Hong Kong Government's restrictions on travel to
Hong Kong by Hungarian businessmen and of setting up a Trade Office
(without diplomatic privileges) in Hong Kong in the not too distant
future. The Hungarians want to increase their commercial
representation in the Pacific area and are opening mini-missions in
Jakarta, Kuala Lumpur and Seoul. They consider that Hong Kong is
also central to this strategy of integrating "the new Hungary" more effectively in the world economy.
2. The Hungarian Foreign Minister raised the question of the
Hungarian Trade Office with the Secretary of State when he visited
Budapest at the end of February. Mr Kovacs, State Secretary at the
Hungarian FMA, also raised it when he called on Mr Tait on 28 March.
The Hungarians are now planning to send a large trade and investment
promotion team to Hong Kong in May.
3. The Hong Kong Government have traditionally taken a very
restrictive attitude to travel to Hong Kong by Soviet and East European nationals. Until recently only a handful of visas were issued to such visitors at any one time. This policy has been dictated largely by perceived Chinese sensitivities about a Soviet and East European presence in Hong Kong which could be used for
intelligence activities directed against China. The Hong Kong
Special Branch has also been reluctant to give greater scope to Soviet and East European intelligence agencies.
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