OUT TELEGRAM

Classification and Caveats

SECRET

Z CZC

RS

2

GRS

.ASS

3 SECRET

AVEATS

4

SKBY

5 3001OOZ

AFCO

L'ADD

I. NO

¡

A

FM FCO 29143OZ DECEMBER~83

TO IMMEDIATE HONG KONG

TELEGRAM NUMBER

Precedence/Desk by

IMMEDIATE 30010OZ

FINANCIAL CONTINGENCY PLANNING

9

STRICTLY PERSONAL FOR GOVERNOR FROM CLIFT

10

11

1

12

since

13

Douglas Blye will of course have reported to you already on his discussions with the Treasury and Bank of England.

d

Treasury have been doing further thinking,

The

for

14 Littler has written to the PUS suggesting a number of matters 15 which should be given further consideration.

16 2.

were

Littler raises the possibility that, financial

17 conditions in Hong Kong to deteriorate seriously, for instance

18 a s a result of a turn for the worse in the talks, the

#

19 Hong Kong authorities might be drawn into considering more 20 extensive support operations for Hong Kong banks.

21

22

23

The Treasury

and the Bank of England are worried about possible contingent financial liability.

3.

The Treasury realise that the right course of action on any 24 particular case could well depend on circumstances. But in The Treasury 25 Littler's: view we should not simply await events.

are

NNNN ends

telegram

Catchword

BLANK

asking

File number

Dept

Distribution

HKD

Drafted by (Block capituls)

R D CLIFT

Telephone number

233 3184

Authorised for despatch

Comcen reference

Time of despatch

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