TNAG-2021-FCO40-2883-Relations-between-Hong-Kong-and-Hungary-1990 — Page 82

CONFIDENTIAL

FM FCO

TO IMMEDIATE HONG KONG

TELNO 395

CONFIDENTIAL

HKB 020/13 RECEIVED IN ISTRY

27 FEB 1990

DESK

INDEX

REGIST

Action e

163675

さ

MDHOAN 3555

OF 20171OZ FEBRUARY 90

INFO IMMEDIATE PEKING, BUDAPEST, UKREP JLG HONG KONG

A

PERSONAL FOR GOVERNOR FROM MARSDEN, HKD

(2

YOUR TELNO 624 AND BUDAPEST TELNO 102 TO FCO: HUNGARY/HONG KONG

1. YOU SHOULD BE AWARE THAT MINISTERS ARE DISPOSED TO QUESTION HONG KONG'S RELUCTANCE TO ALLOW THE HUNGARIANS TO OPEN A TRADE OFFICE AND HAVE ASKED WHY YOU ARE TAKING THIS POSITION. AS YOU KNOW, THE SECRETARY OF STATE IS VISITING HUNGARY AT THE END OF THE MONTH AND IS LIKELY TO BE TACKLED ON THE ISSUE.

2.

WE ARE OF COURSE WELL AWARE OF CHINESE SENSITIVITIES BUT WE WONDER WHETHER WE MAY BE BEING OVERLY CAUTIOUS, PARTICULARLY IN THE CASE OF HUNGARY. YOUR TELNO 4018 OF 6 DECEMBER 1989 TOOK THE VIEW THAT IN SPITE OF RECENT DEVELOPMENTS IN EASTERN EUROPE, IT WOULD BE A MISTAKE TO RUSH MATTERS. EVENT HAVE CONTINUED TO MOVE APACE AND THE CLIMATE FOR INVESTMENT AND TRADE IS CHANGING QUICKLY. ELECTIONS WILL TAKE PLACE IN HUNGARY ON 25 MARCH AND THESE ARE LIKELY TO USHER IN A NON-COMMUNIST GOVERNMENT: THE COMMUNIST PARTY IS EXPECTED TO GAIN LESS THAN 10 PER CENT OF THE VOTE. SOVIET TROOPS WILL SHORTLY BE WITHDRAWN AND THE SOVIET UNION WILL ESSENTIALLY CEASE TO HAVE ANY INFLUENCE OVER HUNGARY.

3.

IN THE LIGHT OF THESE DEVELOPMENTS AND MINISTERIAL INTEREST IN THIS SUBJECT, WE WOULD BE GRATEFUL TO KNOW WHETHER YOU HAVE ANYTHING MORE TO ADD TO THE ASSESSMENT IN FIRST TUR. GRATEFUL FOR A REPLY IF POSSIBLE DESKBY 220930Z.

HURD

YYYY

ΜΑΙΝ

60

LIMITED

HKD

EED

DISTRIBUTION

60

PS

PS/MR WALDEGRAVE PS/MR MAUDE

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CONFIDENTIAL