30

SECRET/DED IP

29

Enlin

DD 010100Z HONG KONG

GRS254

DE DI P

SECRET

HKK

100/7

RECHIVED IN REGISTRY

ERINE BUY 1983.

DESK OF

INDEXDERK

200CT 1983

PA

Action Takuul

DESKBY 010100Z

INDE

FM FCO 301645Z SEP 83

TO IMMEDIATE HONG KONG

TELEGRAM NUMBER 997 OF 30 SEPTEMBER

FOLLOWING PERSONAL FOR GOVERNOR FROM GIFFARD

YOUR TELNO 1452 AND YOUR TELECON WITH CLIFT: FINANCIAL

SITUATION

L. THE CHANCELLOR OF THE EXCHEQUER IS PROPOSING TO

THE PRIME MINISTER, WITH THE SECRETARY OF STATE'S

CONCURRENCE, TO ARRANGE FOR OFFICIALS FROM THE TREASURY

AND THE BANK OF ENGLAND TO FLY URGENTLY TO HONG KONG

TO DISCUSS THE PROPOSED CERTIFICATE OF INDEBTEDNESS

SCHEME. THEY ARE GOODHART (CHIEF ECONOMIC ADVISER

TO THE BANK OF ENGLAND) AND PERETZ (ASSISTANT SECRETARY IN CHARQE OF THE BALANCE OF PAYMENTS DIVISION, TREASURY).

WE ASSUME THAT BLYE WILL THEREFORE NOT TRAVEL TO LONDON.

2. IT IS FULLY UNDERSTOOD THAT THIS VISIT SHOULD BE

CONDUCTED WITH THE UTMOST DISCRETION. IF HOWEVER THE

PRESENCE OF THE OFFICIALS IN HONG KONG BECOMES KNOWN

IT HAS BEEN AGREED THAT THE FOLLOWINQ LINE MIQHT BE

TAKEN IN RESPONSE TO ENQUIRIES: 'THE OFFICIALS ARE

VISITING HONG KONG SIMPLY TO ACQUAINT THEMSELVES WITH

THE CURRENT FINANCIAL SITUATION. AS MR LUCE MADE CLEAR

IN A PUBLIC STATEMENT ON HIS RECENT VISIT TO HONG

KONG, THE ACTION TO DEFEND THE VALUE OF THE HONG KONG

DOLLAR IS A MATTER FOR THE HONG KONG GOVERNMENT.'

3.

SUBJECT TO THE PRIME MINISTER'S AGREEMENT, GOODHART AND PERETZ ARE TRAVELLING ON FLIGHT BA003 DEPARTING LONDON 1700 ON 2 OCTOBER AND ARRIVING HONG KONG 1530

ON 3 OCTOBER. THIS WAS THE EARLIEST FLIGHT AVAILABLE.

THEY WOULD BE GRATEFUL IF THEY COULD BE MET AND IF HOTEL

1

SECRET/DED IP

21865 1

See (31

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