CONFIDENTIAL

Mr CHft

Cc:

Hft

то Ание

m. Manis 826/

PS/Lord Belstead

FUTURE OF HONG KONG

HITH 040/1

ник

INDEX

2 7 JAN 1983

m

He did

1. Lord Shepherd called at his request on me today.

not wish to trouble Lord Belstead, but he has been in touch

with Fung King-Hei who will be seeing Liao Chengzhi in Canton

shortly. Fung has had other meetings with Liao Chengzhi in

the past. Lord Shepherd asked if there was any special message which he could convey to Fung for use with Liao. I said that

we would of course be interested in having a report of anything

which Liao told Fung. There was no particular point to get

across unless Fung wished to address himself to the question of

what made confidence in Hong Kong, eg the basis of confidence

in a convertible currency and the certainty of the continuity

of the system. But essentially my advice would be that Fung

should listen.

2. There then ensued a lengthy discussion about the future of Hong Kong on what are now fairly familiar lines. Lord Shepherd

will probably invite me to lunch when he has heard from Fung

when I shall hear what transpired.

3. At root, I suspect that Lord Shepherd was simply earning his place on the Board of Fung King-Hei's company and may even make a special trip out to Hong Kong in order to keep in touch

with Fung.

25 January 1983

CONFIDENTIAL

Arfmald

A E Donald

(74)

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