GRS 450
CONFIDENTIAL
FM HONG KONG
CONTIDENTIAL
HRR 027/4
TOP COPY
#GISTRY
1 OFEB 1986
TO PRIORITY FCO
TELNO 434
OF 08110OZ FEBRUARY 86
„FFICER
INFO PRIORITY PEKING
INDL
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PA
AB 19/2
PEKING TELNOS. 85, 115 AND 181: FCO TELNO 129 : AND MY
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TELNO 347:
QD
VISITS BY SENIOR CHINESE OFFICIALS TO HONG KONG.
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IN MY VIEW THE NEXT VISITOR SHOULD BE AN ECONOMIC RATHER THAN
A POLITICAL VISITOR. WE HAVE HAD TWO FAIRLY HIGH PROFILE POLITICAL
VISITS BY JI PENGFE AND LU PING, AND THE TIME HAS COME TO CHANGE
THE EMPHASIS.
2. AS A FIRST VISITOR WOULD WELCOME L PENG. WILL CONSULT EXCO ON THIS ON MY RETURN FROM LONDON. (PARA 4 OF PEKING TELNO 85).
3. AS REGARDS MME CHEN MUHUA › AM NOT (NOT) PERSUADED BY THE
ARGUMENTS IN PEKING TELNO 115. WHATEVER HERE DEFECTS OF PERSONALITY
AND BEHAVIOUR, MADAME CHEN MUHUA MUST HAVE CONSIDERABLE CLOUT. SHE WAS, AFTER ALL, CHOSEN TO SORT OUT THE FOREIGN EXCHANGE
PROBLEMS. THE NATURE OF HER RESPONSIBILITIES (AND THE DIFFICULTIES
SHE FACES) PROVIDE OPPORTUNITIES TO UNDERLINE THE COMPLEXITY OF
HONG KONG'S FINANCIAL SECTOR, AND ITS FUTURE VALUE TO CHINA.
3. ACCEPT THAT IT WILL BE IMPORTANT NOT TO PUT THE BANK OF CHINA'S
NOSE OUT OF JOINT. HOWEVER, THE PEOPLE'S BANK NOW SEEMS TO BE
FIRMLY IN THE DRIVING SEAT. TO AVOID THIS WE COULD FLOAT THE DEA
OF A VISIT BY MADAME CHEN MUHUA MORE INDIRECTLY, BY APPROACHING THE BANK OF CHINA IN HONG KONG, MAKING THE FOLLOWING POINTS:
(A) SUCCESSFUL VISITS TO HONG KONG BY JI PENGFE AND LU PING:
(B) WISH TO ENCOURAGE MORE VISITORS. BELIEVE TIME IS NOW RIGHT FOR
FOR VISITS BY SENIOR CHINESE OFFICIALS WITH ECONOMIC
RESPONSIBILITIES:
(C) GIVEN THE IMPORTANCE OF BANKING SECTOR, AND BANK OF CHINA'S
OWN PERMANENT ROLE, WE ARE THINKING IF INVITING SENIOR
BANKING OFFICIAL:
(D) SENIOR BANK OF CHINA OFFICIAL ALWAYS WELCOME. COULD BANK OF
CHINA ALSO DISCOVER WHETHER MADAME CHEN MUHUA WOULD BE INTERESTED
IN RECEIVING AN INVITATION.
CONFIDENTIAL
IF
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