SECRET AND STRICTLY PERSON.
Isle 103
Foreign and Commonwealth Office
London SWIA 2AH
D Peretz Esq HM Treasury Whitehall
SW1
• HRR 10017. RECEIVED INREGULA
= 5 DEC 1983
-ken
KER 9/12
November 1983
Dem Daird,
HONG KONG: FINANCIAL CONTINGENCY PLANNING
1. We spoke about the suggestion by the Governor of Hong Kong that Douglas Blye, the Hong Kong Secretary for Monetary Affairs, should take the opportunity of a short period of leave in December to call on people in the Treasury and the Bank of England.
2. In a telegram addressed to Sir Antony Acland the Governor gave the following background:
''As you will know, the impact of the measures we took to stabilise the exchange rate and prevent failures in the banking sector have been encouraging. But we have not lost sight of the fact that this is in part due to the more optimistic assessment in the public mind of the progress of the talks: and if we entered another period of difficulty confidence here could evaporate quickly and dramatically, with a substantial impact in the financial sector.
In general, we doubt whether there is any novel action which we could take here other than to continue with the policies we have already adopted. But the stakes are high enough that we would like to assure ourselves, before we are faced with the situation, that there is nothing we have missed: and also to know whether there is any action which IIMG could and would take to assist. We should do this while things are calm and confidence is high.''
3. I enclose a copy of a telegram which I am sending to the Governor about the arrangements which you have made so far. Since Blye will be leaving Hong Kong fairly soon, perhaps you could let me know if there are any changes to this.
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Ужи
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cc: C Goodhart Esq, Bank of England
R D Clift
Hong Kong Department
SECRET AND STRICTLY PERSONAL