TNAG-2167-FCO40-3103-Diplomatic-representation-of-Hong-Kong-in-China-possible-est-1990 — Page 2

W G Ehrman Esq

Political Adviser

Government Secretariat

HONG KONG

Foreign and Commonwealth Office

CONFIDENTIAL

London SW1A 2AH

23 August 1990

HKC406/3

REL

DESK

INDE

11 SEP 1990

Y

STRY

130

Dear William,

HONG KONG OFFICE IN PEKING

1.

Many thanks for your letter of 25 July setting out so comprehensively your current thinking about the establishment of a Hong Kong office in Peking. I am also grateful to David Coates for the valuable contribution contained in his letter of 8 August. In view of the connection with the future British Consulate General and Chinese MFA office in Hong Kong, it is clearly sensible that we should be starting to focus on this matter well in advance of the date when such an office might be established.

FUNCTIONS

2. The functions set out in paragraph 6 look right to us, although I am sure that David Coates is equally right to warn about the likely constraints on the scope of the office, particularly before 1997. As far as the reporting function is concerned (para 6(c)) we share your view of the' need for discretion and caution. As David Coates points out, the relationship with the Embassy would need to be handled with great circumspection.

3. I note what David Coates says about the prospect of the office being able to provide logistical assistance to official visitors from Hong Kong. Clearly it would be virtually impossible for the office to do much under present circumstances; but I suspect that by 1995 such a role may seem more natural and acceptable to all concerned.

4.

As far as commercial relations are concerned, there would appear to be some overlap with the functions of the office and those of the TDC. It is not entirely clear to us whether you envisage a continued separate identity for the two offices, or whether the TDC office would eventually be subsumed. I should be grateful for your further views.

TOMAYB

CONFIDENTIAL