51

布政司署

香港下亞畢道

CONFIDENTIAL

OUR REF.: (115) in SCR 12/4841/52 IV

* YOUR Ref.:

GOVERNMENT SECRETARIAT

LOWER ALBERT ROAD

HONG KONG

17 February 1983

MH Morgan Esq CMG MANILA

нако40 15

Mar. \ FEB 1983

Dear Tuchel,

THE PHILIPPINES AND HONG KONG

PVEX

est

A8913

I am sorry not to have written earlier to thank you for your letter of 13 January. The information about Philippines reactions to speculation about Hong Kong's future and the details of measures to attract funds from Hong Kong were very useful. It would be helpful to have similar reports from time to time.

2.

I should perhaps make it clear that the Hang Lung Bank has not collapsed (your para. 2). There was a relatively short-lived run on the Bank in early September (before the Prime Minister's visit) but this resulted from rumours that the Bank had underwritten a firm of local gold traders, Tse Lee Yuen, which had recently closed its doors. These rumours proved unfounded, and the Hang Lung Bank was given public support by the Chartered Bank (Hong Lung's clearing bank). It is possible that the Hang Lung, like some other banks and DTC's here, may have over-reached itself during the property boom, but it is now recovering from its difficulties of last September.

Yours ever, Lizzi

(R J T McLaren)

cc R D Clift Esq, HKGD, FCO

KF X Burns Esq, SEAD, FCO

A Dunning Esq,

Overseas Trade Division 2, DOT

CCW Adams Esq

Senior British Trade Commissioner, Hong Kong CHANCERIES: Kuala Lumpur

Jakarta

Bangkok Singapore

CONFIDENTIAL

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