TNAG-2709-FCO40-3915-House-of-Commons-Select-Committee-on-Foreign-Affairs-and-Par-1993 — Page 186

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March 1993

Mr T Boswell, MP

House of Commons

London SW1A OAA

Thank you for your letter of 18 March enclosing one from your

constituent Mr Jon Lougee of Flexiframe International Ltd, Oak

House, Royal Oak Way North Daventry, concerning Hong Kong.

The Governor's proposals have our full support. We have an obligation to respond to the expressed wish of the Hong Kong

people for more democracy. We are also determined to do all

we can to promote British business interests. I can understand your constituent's concern that his company might be affected should the Chinese retaliate against British

business. Trade and economic links between Britain and China

are growing strongly. This cooperation is in the interests of

both countries. We want to see it continue to develop. We

presume the China, which currently enjoys a £500 million trade surplus with the UK a year would wish to do the same.

We would regret it if the Chinese authorities allowed our

differences over the question of Hong Kong to affect broader

relations between Britain and China. Commercial and economic

relations should be decided on their merits. We have been

urging the Chinese to discuss their differences with us over

the Governor's proposals, and will go on doing all we can to

return to a more cooperative relationship with China.

boswell26.3/PSN010/NJH

ALASTAIR GOODLAD