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FROM:
DATE:
Humphrey Maud
5 June 1987
in 11
Copy to:
Mr Hum, HKD
KOWLOON-CANTON RAILWAY
I was rung by Christopher Eugster at Kleinwort Benson (telephone number: 623 8000) on the following question.
1.
2. Eugster recently visited Hong Kong to look into the question of the privatisation of this railway. He saw the Governor and the Political Director and was most grateful for the help given. He would be grateful for a a FCO view on political aspects of this operation. The railway bridges the New Territories and China proper. The Chinese Government's attitude, and in particular that of its investment arm, obviously relevant as well as interesting. Conditions were not ripe in Hong Kong for privatisation now (I understand, for technical reasons among others). But the operation could obviously serve as an important confidence-building measure. It might therefore be more valuable, say in two years' time when the going in negotiations over Hong Kong's future might be rougher, than now. Could we therefore give Kleinwort's a view on any political aspects of timing which might be ↑ relevant to Kleinwort's decision on whether or not to offer
their services for a privatisation operation?
3.
Eugster is an old and trusted friend and I told him that I would get back to him soon. He was instrumental in setting up Kleinwort's very successful office in Hong Kong a few years ago.
But you are best placed to judge how far we should take an interested commercial operator into our confidence at this stage.
MassA, YAD
VERAZAM
COMMERCIAL IN CONFIDENCE
H JH Maud