R

OCMIAN 0616

CONFIDENTIAL

OO HOKON

FM FCOLN TO HOKON

151350Z JUN

GRS 173

CONFIDENTIAL

FM FCO

TO IMMEDIATE HONG KONG

TELNO 1594

OF 151350Z JUNE 87

CONFIDENTIAL

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PERSONAL FOR CLIFT FROM HUM, HKD

YOUR TELNO 2277: KOWLOON CANTON RAILWAY CORPORATION

1.

YOU ARE RIGHT TO ASSUME THAT THE MERCHANT BANKER IN

QUESTION WAS EUGSTER OF KLEINWORT BENSON. HE WAS IN TOUCH WITH

HUMPHREY MAUD ON 7 JUNE.

!

2.

WE WERE GRATEFUL TO HAVE THIS USEFUL BACKGROUND. IT

WOULD HOWEVER BE HELPFUL ALSO TO HAVE YOUR ADVICE ON THE LINE WE

SHOULD TAKE WITH EUGSTER WHEN WE REPLY TO HIS QUESTIONS. WE

ASSUME THAT YOU WOULD NOT WANT US TO ENCOURAGE HIM TO JUMP TO THE

CONCLUSION THAT PRIVATISATION OF THE KCRC IS A STARTER FOR THE

TIME BEING, NOT LEAST BECAUSE OF THE POTENTIAL COMPLICATION OF A

MERGER WITH THE MTR. WE ALSO NOTE AND AGREE (PARA 6 OF YOUR TUR) THAT THE CHINESE REACTION WOULD NEED TO BE CONSIDÈREU. PRESUMABLY

GREAT CARE WILL BE REQUIRED TO AVOID ANY SUGGESTION OF THE QUOTE

FAMILY SILVER UNQUOTE BEING SOLD OFF BEFORE 1997.

HOWE

OCMIAN 0616

LiMiTED.

нно

FED.

MR. MCLAREN

MR.MAUA

1

CONFIDENTIAL

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