TNAG-2662-FCO40-3858-Future-of-Hong-Kong-British-Consulate-General-1992 — Page 87

SECRET

other British missions. Preparing for this role will be the

most sensitive part of the exercise. We need to reconcile

two conflicting objectives:

- not undermining the Governor as the single source of

advice to Ministers on Hong Kong issues until 1997. The

Governor is concerned that the development of the SBTC's

political role before 1997 would risk crossed wires and undermine the Governor's position. The Governor has

accepted that members of UKRep JLG should do some informal

political reporting on Hong Kong provided that this is copied to him. But he has seen a political role for the

SBTC as more sensitive.

-

Giving SBTC the tools he needs (in terms of staff and of

political contacts around Hong Kong) to perform effectively

as the Senior British representative in the territory after

1997.

The

14. The BTC have at Ministers' request, already made a

start in discreetly expanding their range of contacts.

BTC now has an information officer with a brief to promote

HMG's policies in Hong Kong (which are not always identical

to HKG's). Mr Heap himself has played a more visible role as SBTC. In part this is a natural consequence of the dramatic increase in major project business in Hong Kong, which has involved Mr Heap in frequent contact with the most senior British businessmen and bankers and in lobbying HKG

on behalf of HMG. Mr Heap has also widened the circle of

his entertaining, for example introducing visiting British Ministers to local Hong Kong politicians as well as to business figures. Mr Day should be encouraged to continue

this informal expansion in his areas of interest. This will

need to be done with considerable sensitivity to avoid any suggestion of undermining the Governor. It should be part

of the briefing process for the new Governor and Mr Day that

the British interest requires effective management between

them of this delicate issue.

JM1ACK/6

SECRET