CONFIDENTIAL

Cepied. P. Fufet.

10/4.AM.

234

071334

MDHOAN 2705

CONFIDENTIAL

FM FCO

TO IMMEDIATE HONG KONG

TELNO 630

OF 09163OZ APRIL 92

нка 233/1

TOP COPY Q DIST?

Pa

INFO ROUTINE UKREP JLG HONG KONG, BTC HONG KONG, PEKING

·232

OUR TELNO 625: HMOCS CONSULTATIONS

1.

WE UNDERSTAND (TELECON WATERS (CSB)/COX (HKD)) THAT THE CHAIRMAN OF THE HMOCS ASSOCIATION HAS SUGGESTED THAT IT WOULD BE PREFERABLE FOR US NOT/NOT TO CIRCULATE OUR STATEMENT TO ALL HMOCS OFFICERS AT THIS STAGE: THAT INSTEAD THE ASSOCIATION COMMITTEE COULD ITSELF TELL OFFICERS THAT A STATEMENT HAD BE MADE,

THAT THE COMMITTEE WAS SEEKING TO CLARIFY CERTAIN POINTS WITH US, AND THAT IT WOULD THEN CONVENE A GENERAL MEETING TO DISCUSS THE POSITION BEFORE THE CONSULTATIONS IN EARLY-MAY.

2.

WE APPRECIATE CARTLAND'S CONCERN THAT THE PROSPECT FOR CONSTRUCTIVE CONSULTATIONS BETWEEN THE ASSOCIATION AND HMG MAY BE IMPAIRED IF PREMATURE CIRCULATION OF THE STATEMENT PROVOKES A FLOOD OF ILL-INFORMED INDIVIDUAL REACTIONS TO IT. HOWEVER WE CONTINUE TO FEEL THAT WE MUST GIVE INDIVIDUAL OFFICERS AN OPPORTUNITY TO COMMENT. IN THEORY WE COULD STRETCH THE TIMETABLE OF CONSULTATIONS SO AS TO HAVE A FIRST DISCUSSION WITH THE COMMITTEE BEFORE CIRCULATING THE STATEMENT MORE WIDELY. BUT THE TIMETABLE IS ALREADY VERY TIGHT, AND HAS TO REMAIN SO IF WE ARE TO BE ABLE TO MEET THE OFFICERS' REQUEST THAT WE SETTLE AND ANNOUNCE THE SCHEME IN GOOD TIME FOR THEM TO CONSIDER THE IMPLICATIONS BEFORE 30 JUNE. WE WOULD LOSE FURTHER TIME IF THE COMMITTEE WERE TO SUGGEST THAT WE CIRCULATE A REVISED TEXT OF THE STATEMENT (WHICH WOULD PROBABLY BE DIFFICULT TO CLEAR HERE).

3

IN ANY CASE WE THINK THAT, ONCE HMOCS OFFICERS LEARN (WHETHER FROM THE COMMITTEE OR OTHERWISE) THAT WE HAVE MADE A STATEMENT OUTLINING OUR PROPOSAL, SOME ARE LIKELY TO ASK FOR A COPY, AND IT WOULD BE DIFFICULT TO REFUSE SUCH REQUESTS. THE RISKS OF MISUNDERSTANDING AND PUBLIC CAMPAIGNING ALSO ARISE HOWEVER WE HANDLE THIS.

4. WE SHOULD THEREFORE PREFER ALL THE OFFICERS CONCERNED TO RECEIVE COPIES OF THE STATEMENT AS SOON AS POSSIBLE. IF THE COMMITTEE WISH TO CIRCULATE IT (IN FULL) AND TO ENCLOSE WITH IT

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CONFIDENTIAL

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