CONFIDENTIAL
HKC 406/1
SUB
16007 91
RICKETTS Buens.
2nd Meeting with Gov
Mr Morris
British Consulate-General
10.
Ordinary
You summarised where matters stood. The Governor
wondered whether co-location was in the British Council's interests in the longer term, given the possibility of a backlash against Britain in the years after 1997. people in Hong Kong might not want to be too closely associated with official Britain. It was agreed that Mr Heap should discuss this with the Governor after his meeting with those concerned in Hong Kong. (Could Mr Morris alert
Mr Heap to this, please?)
Jardines
11.
The Minister said that there had been little discussion
of the delisting/takeover problem at his lunch with the Keswicks on 15 October. They had however raised the issue
of a banking licence in Hong Kong for Jardine Fleming. The Governor said that Jardines would be well advised not to
press this issue at present: they would in effect be asking for Jardine Fleming to be given special treatment as if it were a domestic Hong Kong bank at the same time as Jardines were seeking to escape in the wider context from Hong Kong regulation. It would be very difficult to get ExCo to accept that. Jardines should sort out the main issue first
before raising the banking licence.
HMOCS
12. The Governor stressed the impact on morale, particularly in the police, if there was no decision soon. You summarised the present position. It was agreed after some discussion that in practice we had to seek Treasury agreement to all aspects of the package.
BUGACX/5
CONFIDENTIAL