CONE IDENI LAL

Hong Kong's ceiling, but are unwilling to commit

themselves formally to this.

6. I therefore suggest that our officials should

continue to keep in close touch with The Treasury, and

the Bank, and with the consortium, and that as soon as

the Anglo/Italian bid is finalised, we should explain

its attractions to the Hong Kong Government. In doing so

we can draw attention to the relaxation in conditions made

by Hong Kong in accepting the validity of the Japanese bid

and stress the importance we attach to validating the UK

bid. The Governor himself is well aware of this. He has

stressed to me his hope that we will put in proposals which

We would then be on the same footing as

I hope

can be validated.

you agree that we should concentrate on this.

the Japanese and all possibilities would be open.

1.

I am copying this minute to the Prime Minister and

the Chancellor of the Exchequer.

(ALEC DOUGLAS -HOME)

CONFIDENTIAL

7

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