MR LITTLER
HICK
22
10017
SECRET
FROM: DAVID PERETZ
11 October 1983
cc Mr Kerr
Mr Middleton
Sir T Burns
Mr Lavelle
Mr Humm FCO
Clift.
Î shall ass
Pewal 6-2 Phats, Nes Det.
1
HONG KONG
Crot "/10
Charles Goodhart told me this morning that he had been telephoned
by a lady journalist from Hong Kong who seemed to have got to hear of his presence in Hong Kong last week but as far as he could
detect not mine.
2. She asked whether he had been in Hong Kong recently. He said
no comment. She asked whether Bank of England people did visit Hong Kong from time to time. He said yes certainly: the financial
situation there was of considerable interest to us. She asked
whether the Bank of England would advise the Hong Kong Government on monetary policy. He said not without being invited to do so.
3. I have warned IDT. But with luck it looks as if although Goodhart's presence may have been noticed mine was not. Obviously if we do get asked questions IDT will have to keep in close contact with the Bank. We might in the end I suppose have to use the line we prepared and cleared in advance against the possibility of our being spotted when in Hong Kong. But for the present the only addition I would suggest to the points Goodhart made might be to say in reply to any enquiry about the provision of advice to the Hong Kong authorities that when the Bank do visit they naturally compare notes on current issues with the Hong Kong authorities; and that the Bank of England have for many years made a practice of seconding a member of their staff to work in the Hong Kong Monetary Affairs branch, although as a secondee he is of course responsible to the Hong Kong Government, not the Bank.
2.