8. The Treasury concluded that Mr Margolis's report would probably have to come to a similar conclusion and therefore

was worth waiting for and examining in more detail. The

clear hint was that if he did not come to this conclusion

they would be very suspicious. If the Margolis report did

show that something was possible, the Treasury thought that the next step was to invite institutions to submit packages

which would be examined by the Hong Kong Government.

M V Stone

16 March 1992

cc: Mr Cox

Miss Williams

YETAEA/3

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