HKK
100/7
2008-
Melift.
HKD
th. Hom
SECRET
I have sent the tel
FROM: DATE:
CSR Giffard
6 October 1983
45
I have des.
сла
HONG KONG : CARRIAN CASE
tel
من أما
asky for comments declby 0709007 You were going to opent to Mr. Jochnes
1
1. Mr Loehnis, Bank of England, came to see me this morning to say that certain banking contacts had told the Bank of England that they felt the time had come to 'pull the rug on Carrian', ie. put it into Receiver's hands. They feared that if this action were not taken such assets as remained might dwindle. But in view of the delicacy of the situation, and because they had no wish to complicate matters for the Hong Kong authorities or for HMG, they were consulting the Bank informally.
But of
2. The Bank official consulted had been Mr Brian Quinn, Deputy Head of Banking Supervision. He was now in the United States, and would be ringing Mr Loehnis towards the end of the day to discuss what reaction the Bank should give to this enquiry, which I understood to have come from United States banking circles. Mr Loehnis's personal view was that the Bank of England would normally leave such matters entirely to the commercial judgement of those concerned. course it would be a different matter if the timing of the action contemplated could be said to be crucial from the point of view of the Government of Hong Kong or of HMG. It was satisfactory that there had been consultation, and Mr Loehnis asked for any official comment, from Hong Kong or HMG as soon as possible. (He remarked that the American banking contacts had presumably been inhibited from discussing their proposed action in Hong Kong themselves by the con- sideration that the Carrian 'rescue' operation was in the hands of the Hong Kong and Shanghai Banking Corporation, and their merchant banking arm, Wardleys.)
3. I think that you will wish to show this minute to Sir E Youde and, unless he thinks it unnecessary, to send a Secret and Immediate telegram to Hong Kong. I am copying this minute to Mr Littler in the Treasury, to whom Mr Loehnis will also be speaking.
4. Mr Donald may wish to consider the Malaysian angle. On the face of it, I do not myself see how this angle could cause us to wish to have the matter decided other than on grounds of commercial judgement. It seems to me, subject to Treasury views, that we could only do this on the basis of considerations put forward by the Government of Hong Kong.
Celillans
сс PS
PS/PUS
PS/Mr Luce
Mr Evans
Mr Donald
Mr Littler, Treasury
SECRET
CSR Giffard