CONFIDENTIAL
1. I am slightly surprised that Lu Ping should have made so many public remarks on sensitive financial issues. Some of this can be explained by the fact that these remarks were made in Canton, where Lu is more accessible to Hong Kong journalists than he or other Chinese officials are in Peking. But that cannot be the whole explanation. It may be that Lu was anxious to demonstrate to the leaders in Peking, as well as to public opinion in Hong Kong that he is prepared to take a strong line in defence of perceived Chinese interests.
2.
The substance of some of what Lu was quoted as saying is also worrying. He was the Chinese interlocutor in the dialogue on financial matters interrupted by the events of June 1989 and has, or should have, a better grasp of the financial realities than other Chinese officials. All this underlines the importance of further financial education. The PADS team's visit to Peking later this month will be useful in that context though it is a pity that Sir P Jacobs will not be going (because the Chinese indicated that Lu Ping will not be available.) The Governor's visit at the end of the month will be even more important. It will be an occasion for some plain speaking.
вывари
3 January 1991
RJT MCLAREN
NOVABQ
CONFIDENTIAL