CONFIDENTIAL
DIRECT H.M.G INVOLVEMENT IN THE BROKING COMPANY SO THAT HE CAN CLAIM THAT HE ENTERED INTO THE SCHEME AT H.M.G'S INSISTENCE. WE MAY HAVE TO CONVINCE HIM THAT AN 1.C.F PARTICIPATION IN THE BROKING COMPANY SHOULD SATISFY HIS OWN AND ANY CHINESE REQUIREMENT
FOR OFFICIAL BRITISH PARTICIPATION IN A COMPENSATORY TRADING DEAL. YOU WILL NOT BE SURPRISED TO LEARN THAT KADOORIE AT FIRST SUGGESTED THAT THE MERCHANT BANK TRUST FUND' SHOULD BE SET UP BY SCHRODERS AND CHARTERES BUT SUBSEQUENTLY RECOGNISED THAT THE OTHER PARTNERS IN THE DEAL WOULD HAVE TO BE CONSULTED.
3. NONE OF THESE DETAILS WILL NEED TO BE SETTLED BEFORE THE
PRESENTATION OF OUR MEMORANDUM TO THE CHINESE. BUT HIS DISCUSSIONS
WITH MILLS AND WARING WILL NO DOUBT LEAD KADOORIE TO SUGGEST CHANGES IN THE WORDING OF PARAS 6-8 OF THE DRAFT TEXT OF HIS LETTER
TO SUN-SUO-CHENG. OTHERWISE MY ONLY OTHER COMMENTS ARE THAT IN PARA.3B KADOORIE MIGHT PREFER DISCUSSING'' TO ''NEGOTIATING'' AND THAT THE CHINESE WILL PREFER SOME OTHER PHRASE THAN "'JOINT VENTURE TO DESCRIBE THEIR POSSIBLE PARTICIPATION IN ANY BROKING COMPANY??
4. MILLS AND WARING ARE NOW ON THEIR WAY TO HAWAII AND RETURN TO
THEY APPEAR TO HAVE ESTABLISHED KADOORIE'S U.K ON FRIDAY JULY 28.
CONFIDENCE AND I AM SURE THAT HE WILL WISH TO DEVELOP THEIR IDEAS WHILE HE IS IN LONDON.
5. I SHOULD BE GRATEFUL FOR DETAILS OF BENJAMIN'S TRAVEL PLANS IF THEY INVOLVE TRAVELLING VIA HONG KONG ON EITHER THE OUTWARD OR THE RETURN JOURNEY.
MARCH
FILES
MIL THOMAS MR BUTLER
FED
MR LEAHY
S & S D
ECON D
TRED
NEWS D
itko fr. D
PS/HR JUDD
PS/LORD GORONNY ROBERT'S
PS PUS
SIK A DUFF
HIR. CORTAZZI
HR MURRAY.
COPIES
To:
DEP SEC
HR ROYCE MR KNIGHTON
HIL OLDHAM HR WILKS
ARTWYMAN -
MR BROWNING
MIL LOVE
MR. CROF you
HR
LIPPITT
MR
FARROW
11C/AD
BOT B
"DOT'
CRE 4
OPG
CRE
FEA
Z
MR THORNTON
MR. COTTERILL
CONFIDENTIAL
SBP
DEP SEC
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