TNAG-2030-FCO40-2892-Gulf-crisis-sharing-the-financial-burden-possible-Hong-Kong-1990 — Page 24

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FROM:

Robin Lamb

DATE:

18 October 1990

CC:

Mr Millett, ERD

HKB.020/27

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24 OCT 1990

Mr Paul,

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Mr

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BURDEN SHARING: HONG KONG

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19/10

1. Mr Paul's minute of 17 October asked whether we had any "fresh ideas for possible contributions from Hong Kong" which could be put to the Governor in time for the ExCo meeting on 23 October. There would also be an opportunity for a message on Friday evening, 19 October.

2.

Clearly, contributing money to international causes strikes a neuralgic nerve in Hong Kong. The Falklands Fund precedent, however, is not perfect in view of the difference between the Falklands War and the Gulf crisis which is a very much more international affair with broader political, economic and commercial implications. For Hong Kong, the last is perhaps the most important consideration. As an oil importing and trading entity, it benefits from the international community's efforts to safeguard oil supplies and keep oil prices down. Indirectly, these efforts contribute to the health of the world's economy and the vitality of international trade.

3. This factor may well have played a part in encouraging both South Korea and Taiwan to contribute in a fairly substantial way to financial burden sharing. We are lobbying ASEAN countries to get them to contribute too, admittedly without much success so far (unless you count two Singapore Airforce C130 transport aircraft and their cargo of medical and relief supplies, co-financed by Brunei: Singapore telno 487). But they surely will be persuaded to play their part in due course and a contribution from Hong Kong's prestigious economy could encourage them to do so.

4.

I am copying this minute and that of Mr Paul to Mr Millett (ERD) who has a leading role in co-ordinating our policy on burden sharing. I should be grateful if he would comment direct to Mr Paul, copied to you, noting the Friday evening deadline.

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RD Lamb

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