PR1AVL (4)
CONFIDENTIAL COVERING SECRET
SIR Y K PAO'S CHEVENING WEEKEND: 13-14 SEPTEMBER 1986
(a) Standard Chartered Bank
Background
1.
The background to Sir Y K's acquisition in July of a 15% share-holding in Standard Chartered Bank (one of Hong Kong's two note-issuing banks) is in Hong Kong Telno 2448 and our telno 1823 attached.
He
2.
Sir Y K saw the Governor of the Bank of England and the Economic Secretary to the Treasury on 11 September. raised the question of his purchase only with the former, and made two basic points:
(a) his acquisition had
been a personal one,
from his Own and his family's financial
resources;
(b) he saw a developing role for Standard
Chartered in China: but the Chinese had not put him up to making the acquisition.
CONFIDENTIAL COVERING SECRET