CONFIDENTIAL
frade office in Hong Kong need not preclude it from offering a visa service to Hong Kong residents. The views of the Chinese have been sounded out in Hong Kong with the NCNA and there was no adverse reaction. The Hungarians claim to have spoken to the Chinese Ambassador in Budapest who said the PRC would have no objection to Hungary opening a permanent office in Hong Kong.
7. Visa policy for Soviet and East European nationals was relaxed by the Hong Kong Government on 16 July 1990 and as a result visa application processing time for Hungarian nationals (and Poles and Czechs) has been reduced to 10 working days, and purpose of visit extended to include tourism and pleasure visits.
8.
The way forward now seems clear although further informtion, eg to the size of the office, and date of opening are awaited, from the Hungarians, who thought they would be ready to open negotiations on the proposed office some time after mid-July. They have not yet reverted. It has been agreed here that it would not be wise to make the establishment of this office a high profile issue during the PM's visit to Hungary, given that it is a matter between the Hong Kong Government and the Hungarians in an area where Hong Kong enjoys autonomy, and also that an announcement during this visit could be seen by the Chinese as a case of Britain using Hong Kong for its own diplomatic purposes. For much the same reasoning it is thought that there should not be a formal agreement between Hong Kong and Hungary regarding the establishment of the trade office.
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CONFIDENTIAL
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