CONFIDENTIAL
↑
WIYOʻT.
DSR 11C
Subsidiary has shown,
Ministers are cmeoned Har
due sensitivity
shoutal be shown
M
South African issors patru dally Jannatas
where
#
are not compelled quiled by Legislation.
Minister might
سلسل
stocks and was continuing to do so.
The powerful anti-
South African lobby in this country, led by the Anti-
Apartheid Movement, would certainly make an issue out of it.
So too, I am sure, would "Private Eye" which takes a close
interest in the affairs of what it describes as "the
Cesspit of the Orient" and would blacken HMG as well as the
Hong Kong Government. It is relevant, in this connection,
that the report of the Director of Auditing Services in Hong
Kong are available to the public, Moreover, I understand
that after the recent case of the investment in South African
Hefence bonds by the Barclays Bank's subsidiary in South
wtfeel itit at Africa, it would be difficult for Ministers to adhere to the
a home when
wir
stey exhorting fors
to behair
respaisibly Santh A frien mit mit necesarily! thra Terezy Luse
trunacha
ristintive
keynslation, tho
of footh
maral free of
Approat
عقار
wald out at Summiting
rist
previously stated policy of not placing restrictions on normal
trade and investment in South Africa.
RECOMMENDATION
their
In the circumstances I recommend that we should draw the
Hong Kong Government's attention to the sensitivity, as we
Bee it, of its investments in South African stocks (we do not
know whether the Governor himself is aware of the position);
Hat the matter is so sensitive say that we should not wish to suggest that the Hong Kong
their Government should divest itself of its existing investments
they
Kair at once; advise that it ought not to expand its portfolios
and should in no circumstances buy South African defence
ponds; and invite the Hong Kong Government to consider a
it's gradual phased reduction of their holdings, provided that this
Si micant- aid not cause any unacceptable financial disadvantage.
Hus, insofwer E FURTHER ACT W
ниві
In view of the political sensitivity of this matter,
Lord Goronwy Roberts may consider, if he agrees with the
recommendation, that he should speak to the Governor himself
about it when he passes through Hong Kong on 19 February.
I
Напорота
In that even I will put a copy of this submission with
/Lord..