CONFIDENTIAL
The present position is that ExCo have not formally rejected Jardine Fleming's application. The application lies on the table. Informally, it has been put to Jardine Fleming that they might wish to let matters rest while ExCo see how the new "three-tier" system, with its provision for institutions like Jardine Fleming to call themselves merchant banks, works in practice. Jardine Fleming locally have made
it clear that they see no problem with this. The Hong Kong authorities have also assured Jardine Fleming that they stand ready to intercede on their behalf in any case where they feel that their lack of full banking status is hampering them internationally.
So far they have not taken up this offer.
I am copying this letter to John Gieve (HM Treasury) and to Paul Tucker (Bank of England).
Yam
Stephen Wah
(J S Wall) Private Secretary
C D Powell Esq
10 Downing Street
CONFIDENTIAL