OCMIAN 9303
CONFIDENTIAL
PP HOKON
FM FCOLN TO HOKON
081700Z JUN
GRS 173
CONFIDENTIAL
FM FCO
TO PRIORITY HONG KONG
TELNO 1544
OF 081700Z JUNE 87
CONFIDENTIAL
173/2
TOP COPY Q DIST ?
59303 1
FOLLOWING PERSONAL FOR POLITICAL ADVISER FROM HUM, HKD
KOWLOON CANTON RAILWAY (KCRC)
1.
YOU WILL WISH TO BE AWARE THAT AN UNDER SECRETARY HERE HAS
BEEN APPROACHED BY A MERCHANT BANKER REGARDING THE QUOTE
PRIVATISATION UNQUOTE OF THE KCRC.
2. THE BANKER SAID THAT HE RECENTLY VISITED HONG KONG AND HELD
USEFUL DISCUSSIONS WITH THE GOVERNOR AND YOURSELF ON
PRIVATISATION. HE UNDERSTOOD THAT CONDITIONS WERE NOT RIPE FOR
PRIVATISATION FOR THE PRESENT, BUT THAT THEY MIGHT BE BOTH BETTER, AND ALSO MORE VALUABLE IN CONFIDENCE TERMS, IN A FEW
YEARS TIME. HE ASKED FOR AN FCO VIEW ON THE POLITICAL ASPECTS OF
THE TIMING OF PRIVATISATION AND OUR VIEWS ON THE CHINESE
REACTION.
3. THIS IS THE FIRST WE HAVE HEARD OF ANY PLAN TO PRIVATISE THE
KCRC AND WE ARE THEREFORE UNSURE HOW WE SHOULD RESPOND TO THIS
ENQUIRY. GRATEFUL FOR ANY BACKGROUND YOU CAN PROVIDE.
HOWE
OCMIAN 9303
LIMITED
HKD
FED
MR MAUA
MR MCLAREN-
1
CONFIDENTIAL