TNAG-2307-FCO40-3343-UK-inward-investment-in-Hong-Kong-1991 — Page 21

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invest in britain bureau

Issue

The British Trade Commission (BTC) without consulting us - have sounded out Lord Young to be keynote speaker at a seminar this November to which they hope to attract the millionaire captains of commerce in Hong Kong. In our view Lord Young will certainly attract an audience but it will be one for whom IBB and HMG can do

The seminar will little that they cannot do better for themselves. also raise unwelcome expectations that HMG is perhaps now ready to do deals on right of abode - a matter on which Lord Young was quite active when he was in the DTI.

Recommendation

That we should be able to say that we have our Ministers' support for being reluctant to mount the type of high profile event that the BTC hanker after.

Background

Earlier this year, the FCO agreed more relaxed guidelines for inward investment promotion in Hong Kong. (See Annex A)

The key paragraphs are 8 to 10. IBB's current three year corporate plan (extract at Annex B) does not envisage any high profile activity, mainly because the potential for investment which we can assist is modest. Nonetheless, there is an opportunity to do some cost effective promotion of a specific and targeted nature, taking advantage of the passage through the Far East of myself and my Deputy Director on other business in November, and the availability in Hong Kong of an experienced ex-employee of the Industrial Development Board of Northern Ireland. The type of very practical event we planned is set out in a draft contract (Annex C), and further described in my letter to the Senior British Trade Commissioner of 29 August (at Annex D). This letter was written when I discovered that without consulting us the BTC had asked Lord Young if he would front our seminar. The thinking of the BTC is elaborated in their telegram of 29 August (Annex E) which arrived after my faxcd letter was sent. BTC have now told us this morning by 'phone that they still do not accept our arguments. They say that it would be "in the greater interests of the UK" to hold an event of the kind they envisage for the "millionaire captains of Hong Kong industry" despite our reservations and the difficulty and extra expense of the seminar being on a date which does not fit with IBB plans.

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