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LORD CARRINGTON'S MEETING WITH THE GOVERNOR OF HONG KONG

POINTS TO MAKE

30

THE FUTURE OF HONG KONG

1. China clearly not yet ready to discuss problem in any detail

despite official level approach by Chinese Ambassador.

2. Glad that Hong Kong, FCO and Peking Embassy cooperating in

preparation of paper on measures to deal with a slide in confidence.

3. (If Governor suggests that Prime Minister's visit to China should

take place in 1983 rather than in 1982). Understand risk of visit

before events make progress on Hong Kong likely. However, need to

bear in mind general context of relations with China. Too long a

delay could be awkward. But at any rate Prime Minister could only go

relatively late in 1982, i.e. September.

HONGKONG AND SHANGHAI BANK BID FOR THE ROYAL BANK OF SCOTLAND

4.

Told Governor of Bank of England it would not be possible to bring

pressure on Hong Kong to get Shanghai Bank to withdraw their bid.

5.

Explained to Monopolies Commission dangers of rejecting Hongkong

and Shanghai Bank bid for 'wrong' reasons and reserved Hong Kong

Government's position to give evidence if necessary.

6. Hope discussions with Mr Richardson went well.

THE NATIONALITY BILL

7. Interested to hear present mood among Unofficials following

latest assurances in the House.

VIETNAMESE REFUGEES

8.

Glad to see number in Hong Kong, excluding those from China, now

down to nearly 15,000. But share concern at signs of new outflow from

China.

/9.

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