KI

A

HK2AOM

2211/2

HKK 121/1

4

CONFIDENTIAL

Pse type

HKK

102/1

RECEIVED IN REGISTRY

28 JAN 1987

DESK OFFICER

IND

PA

REGISTRY

Action Taken

FROM: CO Hum

DATE: 16 January 1987

к

بیار

cc: Mr Gillmore

Mr Walker, Research Dept

Mr Hallett, Economic

Advisers

Mr Sullivan, FED

FROM

MR C P B HARDCASTLE:

PRC INVESTMENT IN

LETTER

HONG KONG

Problem

1.

Mr Renton asked for our comments on Mr Hardcastle's

letter to him of 16 December 1986.

Recommendation

2.

I recommend that Mr Renton reply on the lines of

the attached draft.

FED, Research Dept and Economic

Advisers concur.

Background

3.

The letter contains several odd assertions about

the pattern of, and motives behind, Chinese investment in

Hong Kong over recent years.

It may be that Mr Hardcastle's interlocutors garbled their account, or that

he partly misunderstood what he heard. He appears to some extent (as he says) to have been fed a line, though for

exactly what purpose it is unclear.

CONFIDENTIAL

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