TNAG-2487-FCO40-3618-Future-relations-between-Hong-Kong-and-China-1992 — Page 234

HKC 000

CONFIDENTIAL

FROM:

R A Burns

DATE:

30 January 1992

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CC:

M Cox in zili

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سالا

Marr's

Bury 31/1

PS/PUS

Sir J Coles

Chief Clerk

Mr Bayne

Mr Miles

Mr Ricketts, HKD

Mr Chase, RMD

Mr Montgomery, MVD Mr Clay, PMD

Mr Wye, RAD Mr Bertram, OED

PS/Lord Caithness

PS

31

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pa im

POSSIBLE POST IN CANTON

I

1. I am grateful to Mr Davies for setting out the arguments so clearly. My instinct is that we should want to set up shop in Canton because it is such a dynamic part of Asia, and our commercial interests will drive us in that direction. note too from the background note that there must be a real chance that the Chinese will make it difficult for us to cover South China from Hong Kong after 1997.

2. On the other hand, there are a lot of pitfalls along the way, and the costs will not be negligible. What we need now is a serious dialogue with Peking and Hong Kong about the pros and cons, with a view to taking a decision in principle in the course of next year's TMR Round. This was rather the conclusion of the Board of Management, which touched on the matter briefly last week. Subject to the Minister's views, I will propose in due course to convene a meeting of interested FCO and Whitehall Departments to look at the arguments in greater detail, and make a report.

Ada

R A Burns

EM1AAX

CONFIDENTIAL