RESTRICTED

FM FCO

TO IMMEDIATE HONG KONG

TELNO 1474

OF 12123OZ AUGUST 91

RESTRICTED

TOP COPY Q DIST?

apis

175124

MDHOAN 8674

MP'S LETTER: FRANK CHING'S ARTICLE ON BCC HK

1.

ROBERT MACLENNAN MP HAS ASKED US FOR HMG'S REACTIONS TO THE CONCERNS EXPRESSED IN AN ARTICLE BY FRANK CHING IN THE SCMP OF 19 JULY ON THE BCC HK SAGA. WE ARE FAXING A COPY TO SMA FOR EASE OF REFERENCE.

2. WE SHOULD BE GRATEFUL FOR ADVICE ON HOW WE SHOULD REPLY. ONE OPTION WOULD BE SIMPLY TO SAY THAT THIS IS A MATTER FOR THE HONG KONG GOVERNMENT AND TO SEND MR MACLENNAN A COPY OF THE NOW PUBLISHED REPORT BY THE COMMISSION OF BANKING. BUT GIVEN THE LINKS BETWEEN YOUR DECISIONS AND THE BANK OF ENGLAND'S ACTIONS AND GIVEN THE WIDE PUBLICITY HERE ABOUT THE SUBSEQUENT RUNS ON CITIBANK AND STANDARD CHARTERED WE SHOULD PREFER TO SEND SOMETHING FULLER.

GRATEFUL FOR A REPLY BEFORE 16 AUGUST.

4.

CHALKER

YYYY

ΜΑΙΝ

22

LIMITED

HKD

ADDITIONAL

2

MR MCINTYRE HMT

NNNN

DISTRIBUTION

24

ERD

SIR J COLES

MR ELSTON B OF E

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