2
PO/84/2
Mr Clift, HKD
SECRET ORIEL
A
АКК 100/3
RECEIVED IN REGISTRY
10 JAN 1984
DESK OFFICER
INDEX
REGISTRY
PA
Action Taken
04 JAN 1984
3
Copy No3 of 4
Hong Kong: Financial Contingency Planning
The Secretary of State has seen a copy of your minute of 3 January to PS/PUS.
He does not think that the Treasury's concern is quite as you have outlined in your paragraph 2. He believes that the problem is simpler and that the Treasury are worried about a scenario in which the Hong Kong banks (as some have already done) become unable to meet their liabilities while Hong Kong is still a colony. In that situation, the Hong Kong Government - without, as far as he understands the position, a central bank capability interposed would no doubt agree to underwrite the liabilities of some or all of the Hong Kong banks. The Treasury
are likely to be worred about the extent of these liabilities and whether the Hong Kong Government have the resources to meet them. If they do not, then HMG would surely be liable to stand in the shoes of the Hong Kong Government.
The Secretary of State has commented that this situation could develop quickly, at any time if confidence was badly hit. It is quite distinct from any liability to support the Hong Kong currency.
Ricketts
4 January, 1984
(P F Ricketts)
cc: PS/PUS
Mr Donald
AKK
100/3
RECEIVED IN REGISTRY
- 9 JAN 1984
DESH OFICER
No
R
PA
KER 10%
SECRET ORIEL
-