}

HOFO @23/38

PP F C O CO

GR 240

CYPHER CAT A

Mr McLaren Lord G-R will not be

about this, I fear. Hcl

Тво

FM HONG KONG 300822Z

CONFIDENTIAL

happy jejourna

TO PRIORITY F C O TELNO 812 OF 30 JUNE 1978.

41

5 fear. Hdl HHKASD Ps/Lord Goromany Mubeats

YOUR TELNO 501: APPOINTMENTS TO EXCO AND LEGCO.

INCE

M

1/3

- 4 JUS 1978

OFFIC

ar Tyken

1. YOUR LAST SENTENCE THERE IS NOT MUCH ROOM FOR MANOEUVRE,

F W LI IS SUITABLE AND HIS CHAIRMANSHIP OF THE INDUSTRIAL ESTATES

CORPORATION WILL PROGRESSIVELY BECOME MORE RELEVANT. HOWEVER,

IF HE WERE NOW APPOINTED THERE WOULD BE TWO EX CHAIRMEN OF THE

BANK OF EAST ASIA (THE OTHER IS SIR SY KAN) ON EXCO AND WITH

SANDBERG AND Q W LEE THERE WOULD BE ALTOGETHER TOO MANY BANKERS.

2. 1 WOULD BE RELUCTANT TO RECOMMEND JAMES WU AND COULD NOT

HILTON CHEONG-LEEN. DR FANG MIGHT EVENTUALLY BE EXCO MATERIAL BUT

HE HAS BEEN SLOW TO DEVELOP OUTSIDE OF HIS OWN SUBJECT OF

REHABILITATION. T S LO IS NOT YET READY. OTHER MEMBERS OF LEGCO

HAVE ONLY SERVED TWO YEARS.

3. WHEN I CAME HERE THERE WERE THREE BRITISH AND ONE PORTUGUESE ON

EXCO. I DELIBERATELY DROPPED ONE OF THE BRITISH TO IMPROVE THE

BALANCE IN FAVOUR OF LOCAL APPOINTMENTS. THE PORTUGUESE RETIRED

AND AT THE TIME THERE WAS NO PORTUGUESE OR OTHER MINORITY GROUP

REPLACEMENT. BEFORE MAKING MY RECOMMENDATION I DID DISCUSS WITH

SIR Y K KAN WHAT REACTIONS WOULD BE TO A TEMPORARY RETURN TO THE

FORMER BALANCE AND HE SAID THAT, PROVIDED IT WAS TEMPORARY IT WAS ACCEPTABLE, AND HE AGREED THAT SANDBERG AND LOBO WERE THE OBVIOUS CHOICE. LIKE ME, HE IS ANXIOUS TO FIND A SHANGHAI INDUST-

RIALIST FOR EXCO, BUT THERE DOES NOT SEEM TO BE A SUITABLE ONE AT

PRESENT.

MACLEHOSE

NNNN

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