TNAG-2362-FCO40-3433-Visit-by-John-Major--UK-Prime-Minister--to-Hong-Kong--Septem-1991 — Page 33

aef2.jb/sept.min./9.5

HM Treasury

Christian Adams Esq

AT MON

Department of Trade and Industry

1-19 Victoria Street

LONDON

SW1H OET

Parliament Street London SWIP 3AG Telephone 071-270

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September 1991

15/9

Dean the Adams,

BRIEFING FOR PRIME MINISTER'S VISIT TO CHINA AND HONG KONG

The

I am very concerned that the briefing prepared recently for the Prime Minister's visit to China and Hong Kong was not cleared with the Treasury. Although my people attempted to obtain the China and Hong Kong briefs from the FCO, the DTI and ECGD on Wednesday 28 August, and on subsequent occasions, the briefs were only provided to the Treasury after they had been despatched to No 10.

The brief on Hong Kong in particular - which arrived here only at ?Set lunchtime on Wednesday 4 August - contained passages which were

prejudicial and to which the Treasury would not have agreed. Prime Minister was invited, for example, to confirm to Lord Kadorrie and Sir William Stones that ECGD cover would be made available for the Black Point power station.

It is far from clear however that Treasury Ministers would be prepared to agree to cover for this £1 billion project in addition to cover for the PADS project. As you know, further commitments in China and Hong Kong can be taken on only as claims against the Amber Zone budget. We have made clear in correspondence at official level that we anticipate that Treasury Ministers will be unlikely to agree to any increase in exposure in either market above £200 million DML in any year.

It is normal practice for the department writing the brief

in this instance ECGD/DTI to clear the brief in draft which in this instance was clearly not done. A brief for the Prime Minister should put forward agreed Government policy, not the interests of an individual department. I would be grateful if you could ensure that your people keep these points in mind. The alternative, of course, is for the Treasury to submit separately to No 10 its Own briefing for these visits and, if this episode is repeated, we shall have to consider doing this. I am sure, however, that you would agree that co-ordinated briefing, which has been cleared by all interested Departments, would be a better procedure.

I am copying this letter to Malcolm Stephens (ECGD), Christopher Roberts (DTI), Andrew Burns (FCO), Roger Bone (FCO), Chris Saunders (MOD) and Tim Downing (Bank of England).

Yours

sincerely

Junie Martin

J MORTIMER

Switchboard 071-270 3000

Fax 071-270 5653

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