MEARD
F.1/5
19
TELEGRAPHIC ACO.
MATHESON LONDONEC 3 FACSIMILE CTI 623 3024 "E_EX 8953378 MANDCO TELEPHONE 07 528 4000
Miss Bluch
f
PA Jardines file
1614
а
16/4.
To fax: 071 270 3387 (5 pages)
14 April 1993
STRICTLY PRIVATE AND CONFIDENTIAL
at (19
Reply Dear Peter
Matheson & Co. Ltd
HKCC 012/4 RECEIVED
3 Zimbard Street
London EC3V GAŬ
Con
зве
STRY
•
APR 1993
DESK CER
INDEX
FA
REGISTRY Action Tak
Jardine Matheson and China
PSIGH
Sir R. McLaren BSIM Gooled
Sir J Coles
Mr Hum
Mr Davies, FED
M. Jones- Parry [CD(E)
-frakeft for
advice (discreeth
Point
Over the past ten days or so, we have received evidence that instructions to discriminate against Jardine Matheson's businesses in China at GATT: have been issued by the Chinese authorities. The reason is the support which the firm has given to the Governor and his constitutional proposals. Much of the evidence is circumstantial, although in two cases it appears to be more direct. I enclose a summary of the evidence.
This is naturally a matter of great concern to us, both because of the direct effect on our business, the impact on our Chinese staff (both in China and in Hong Kong) and the potential for upsetting relations with our major joint venture partners.
We wish if at all possible to handle this discreetly and in a low key. I am myself seeing Ambassador Ma this afternoon to remonstrate and urge that the instructions be rescinded. I will let you know what emerges from
that meeting.
But I believe that the evidence is sufficiently strong to justify us asking HM Government to raise the matter with the Chinese authorities in the context of the talks about Hong Kong's future which are soon to start. I have reflected carefully before asking this, because I recognise the danger of identifying us too closely with the Government, thus making relations with the Chinese more difficult still. But I think on balance the risk to our commercial interests from China's discrimination is greater.
We do not presume to advise you on the tactics. The starting point might be the wish to avoid any sort of public confrontation on the issue. Nonetheless the evidence that discrimination is being practised against Jardine Matheson's business is a matter of concern to the Government and you hope it will cease forthwith. Apart from anything else, it must be
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