CONFIDENTIAL

UK COMMS ONLY

FM HONG KONG

TO IMMEDIATE FCO

CONFIDENTIAL UK COMMS ONLY

340/1 HKD

17 OCT 1990

RECEIVED IN

RY

TELNO 2997

DESK OFFICER

TRY

OF 1111OOZ OCTOBER 90

INDEX

PA

on lakec

INFO IMMEDIATE GIBRALTAR

Int.sup.

130174

MDHIAN 3679

TOP COPY Q DIST 2/

382

SIC

PERSONAL FOR PAUL, HKD FROM GOVERNOR

GIBRALTAR PERSONAL FOR GOVERNOR

(381)

YRTELNO 1880: ALLEGED ASSET TRANSFER FROM HONG KONG TO UK

1. I TOO AM EXTREMELY SCEPTICAL. IT IS HIGHLY UNLIKELY THAT ANYONE COULD HAVE BROUGHT TOGETHER ASSETS OF THE ORDER OF U.S. DOLLARS 30 BILLION WITHOUT ATTRACTING ATTENTION. THE FIGURE IS SO LARGE THAT IT IS WELL BEYOND THE MEANS OF ANY INDIVIDUAL THAT WE CAN THINK OF. THE IDEA OF LENDING ON TO HMG AT NOMINAL INTEREST THROUGH SEVERAL THIRD PARTIES DOES NOTHING TO ENHANCE THE CREDIBILITY OF THE STORY.

2. EVEN IF THERE IS SUCH A PERSON, IT IS HIGHLY UNLIKELY THAT THE MONEY HAS BEEN BOOKED IN HONG KONG. IT IS EQUIVALENT TO ABOUT 20 PER CENT OF ALL DEPOSITS IN HONG KONG. IT IS BIGGER THAN THE SIZE OF THE BALANCE SHEET OF THE MAJORITY OF BANKS OPERATING IN HONG KONG. OUR RECORDS SHOW THAT IT IS ABOUT 15 TIMES THE TOTAL ASSETS OF THE NAT WEST BRANCH IN HONG KONG.

3. I SEE NO POINT IN RAISING HARES HERE BY TRYING TO ELICIT ANY INFORMATION FROM NAT WEST IN HONG KONG. IF YOU WISH TO CHECK THAT PART OF THE STORY, WOULD IT NOT BE AS EASY TO ASK NAT WEST IN LONDON?

WILSON

YYYY

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1

CONFIDENTIAL UK COMMS ONLY

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