TNAG-2126-FCO40-3036-Investment-in-Hong-Kong-1990 — Page 166

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This magic figure of £2 billion (in 1987!) of British assets in Hong Kong is floated around Whitehall with no Government department taking the responsibility for its accuracy, least of all the Foreign Office who should know more definitively than anybody else what the British interests they are supposed to be looking after really are.

In fairness to Douglas Hurd, he generously admits that the total magnitude of British commercial investment in the territory is more impressive than the "1987 direct investment" figures indicate. Nicholas Ridley, at lunch with us recently, also admitted that the £2 billion figure was absurd. In this connection you might like to read through my exchange of correspondence with Douglas where I try to explain how extensive the British commercial investment in Hong Kong really is.

I do hope, having read my letter, you might consider asking a further question so that the Treasury can put the record straight, otherwise Parliament will get the impression that British assets in Hong Kong are limited to £1,924m in 1987.

On your "Winning for Britain" theme in your Common Market policy; British Investment, Trade and influence throughout the Asia Pacific region is all based and spreads out from the dominant position we have built up in Hong Kong something worth keeping and

understanding.

With best personal regards.

you

HENRY KESWICK

The Rt. Hon. Michael Heseltine, P.C.,M.P,.

House of Commons,

Westminster,

LONDON, S.W.1.