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RIDLEY'S MEETING WITH THE GOVERNOR OF HONG KONG: 22 JUNE 1981

POINTS TO MAKE

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 contingency paper on measures to deal with a slide

in confidence.

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

should take place later rather than sooner in 1982). Point well

Only suitable slot in Prime Minister's programme likely

taken.

to be in September.

HONGKONG AND SHANGHAI BANK BID FOR ROYAL BANK OF SCOTLAND

4. Lord Carrington 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.

THE NATIONALITY BILL

6.

Interested to hear present mood among Unofficials following

latest assurances in the House.

VIETNAMESE REFUGEES

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

now down to nearly 15,000.

outflow from China.

But share concern at signs of new

18.

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