TNAG-2244-FCO40-3225-Most-favoured-nation-status-for-China-impact-on-Hong-Kong-1991 — Page 133

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Reference

CONFIDENTIAL

M3.090/4

MEN

5

LORD CAITHNESS' VISIT TO HONG KONG : 22-25 JULY 1991

(191

1.

In your minute of 16 July you asked my section to produce supplementary briefing on the Royal Naval presence and on MFN.

2.

The question of the Royal Naval presence may well have been overtaken by events. As you know, the Secretary of State's letter to the Defence Secretary dated 15 July on HMG's out of area commitments crossed with the Defence Secretary's letter of the same date on the Royal Naval presence. The latter's letter essentially gave us a deadline of 23 July to come up with funds: if we could not he would have to proceed to get on with the withdrawal. We have done a brief for the Secretary of State to use with the Defence Secretary which has been copied to PS/Lord Caithness.

3.

The MOD are aware that Lord Caithness will be in Hong Kong next week and we have asked them for detailed press briefing. The MOD anticipate a whole tranche of announcements to take place on 23 July including the Gurkhas and the Second Battalion - but not the Royal Naval presence. They will include briefing on all these subjects. As the briefing will not be ready until the end of this week, we shall probably have to fax it to Lord Caithness in Hong Kong early next week.

4.

With regard to MFN, there is nothing to report at this stage. The Senate will either debate the issue this week or next week. If it is next week, then no doubt Washington will copy their reporting telegrams to Hong Kong but we may have to do some rapid briefing when any voting results are known.

Ms.

M Stone

Mr Furmers

Pls pursue

418/7

Hong Kong Department

WH 304

17 July 1991

270 2651

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