CONFIDENTIAL
FM PEKING
TO PRIORITY FCO
TELNO 131
OF 310627Z JANUARY 89
INFO PRIORITY HONG KONG
CONFIDENTIAL
2
040772
MDLIAN 2801
[HKC102/1
31..
TOP CC DIST
HONG KONG TELNO 333. TAIWANESE BANKS IN HONG KONG.
1.
WE AGREE THAT THE CHINESE ARE UNLIKELY TO OBJECT TO THE GRANTING OF A HONG KONG BANKING LICENCE TO THE FIRST COMMERCIAL BANK OF TAIWAN. THE FACT THAT THEY HAVE NOT OBJECTED TO THE ESTABLISHMENT OF A BRANCH OF THE BANK IN LONDON AND THE UNOFFICIAL INDICATIONS FROM THE BANK OF CHINA AND CITIC WOULD SEEM TO BEAR THIS OUT. WE HAVE WARNED ON OTHER OCCASIONS, HOWEVER, THAT WE SHOULD NOT NECESSARILY VIEW THE CURRENT STATE OF PEKING/TAIBEI RELATIONS AS A BAROMETER FOR WHAT THIRD COUNTRIES MAY DO (PARA 4 OF TUR): THE CHINESE ARE KEEN THAT THEY SHOULD CALL THE SHOTS AND THAT THE PACE OF ANY RAPPROCHEMENT SHOULD NOT BE SET BY OTHERS.
WE AGREE THAT IT WOULD BE SENSIBLE TO INFORM THE CHINESE IN ADVANCE IF IT WERE DECIDED TO GRANT FIRST COMMERCIAL A LICENCE.
2 "
DONALD
YYYY
ΜΑΙΝ
48
.HONG KONG AGREEMENT
.(RESTRICTED)
LIMITED
HKD
HD/FED
RESEARCH (FE)
DISTRIBUTION
51
ADDITIONAL
3
PAGE
PUSD
PS/LORD GLENARTHUR
PS/MR EGGAR
MR GILLMORE
MR MCLAREN
1
CONFIDENTIAL