TNAG-2921-FCO40-4196-Visits-and-proposed-visits-by-Alastair-Goodlad--Minister-of--1993 — Page 35

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CONFIDENTIAL

MR GOODLAD ́S VISIT TO HONG KONG: 7-9 JANUARY 1994

BRIEF NO.

2

DINNER WITH SENIOR BUSINESSMEN

DAMAGE TO BRITISH COMMERCIAL INTERESTS

Senior Chinese leaders have said frequently and publicly that

political and economic issues should be kept separate. (Eg

in the context of renewal by the US of Most Favoured Nation

status for China, and most recently in a statement by

Ambassador Ma to a CBI Business Conference).

We have not been told formally by the Chinese side that they

intend to discriminate against British firms.

Economic relations are mutually beneficial. We note that

China at present enjoys an annual trading surplus of pounds

500million with the UK.

Discrimination against British firms would not be consistent

with the EC/China Cooperation Agreement, or the spirit of China's GATT application.

A mistake to think that discrimination against UK commercial and economic interests would bring about change of policy on

Hong Kong.

dinner.NAT.JRB

CONFIDENTIAL