4.

of.ed/March/Min.8.90

Miss Marsden

STONE

We are about to

FROM: HP EVANS DATE March 1990

HKC 121/2 121/2

Pa

EXT: 4380 +-15C 124/2

RECE

12 MAR 1990

18

fire on this

one.

But I

Hink the

s right.

MG

proposed response

DESK OFFICER

INDEX

A

Sodor takeI

cd

Mr G

MR PERETZ

Mir Stone

1

spoken.

4813

6/3

Folllowing our discussion, I see

HONG KONG

that this in

lips

Mr P Richardson (CS●) Mr P Turner (EA2) Mr Paul (Hong Kong

Dept, FCO)

June a urding

line.

But

?

how to it to be deployed and to shine

The Chancellor recently answered a PQ about the value of UK assets in Hong Kong, and this has given rise to some discussion, the details of which I need not trouble you with.

I attach a copy of the Question and Treasury reply, drafted by the CSO in

consultation with EA.

2. The criticism is that the reply was misleading because it took no account of the much wider UK interests in Hong Kong, which together total many times the £2 billion quoted in the reply. This criticism seems to me to be misplaced, given the question asked, and I propose to take the following line:

i)

ii)

When HMT was asked a question about the calculations of

the value of UK assets in Hong Kong, we made the only possible response by quoting available figures, and

The

explaining their basis and the fact that there was no

information on other categories of investment.

source of the £2 billion figure was a survey of book of 1987 [conducted by DTI] and published in British Business on 29 September 1989.

values at the end

HMG are well aware that there are very large assets in Hong Kong involving some combination of

ownership, management or control.

British

1

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