GC 240
JORITY
CYPHER CAT A
FM HONG KONG 300822Z
CONFIDENTIAL
AKKOWS
RECEIVED IN REGISTRY MO. ST
OFFICES
1978
Action 7--en
4
CONFIDENTIAL
TO PRIORITY F C O TELNO 812 OF 30 JUNE 1978
Mi
YOUR TELNO 5011 APPOINTMENTS TO EXCO AND LEGCO.
See (48
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
SJR 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
FILES
HK SGD
LEGAL ADVISERS
PS/LORD GORONWY ROBERTS
MR. CORETAZZI
HR
MURRAY
CONFIDENTIAL
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