CONFIDENTIAL
Sconteny d State
To be pot on
HMCC
314
Policy
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Mr Burns
Private Secretary
FROM: P F Ricketts, HKD
DATE: 13 May 1992
1815
cc: PS/Mr Goodlad
Mr Bone
Mr Jay
Mr Sheinwald, ECD(I)
Mr Tebbit, ERD
DVRicketts
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2 withi ever have an opportunt to raise within in margin of Cabinet.
CABINET: 14 MAY: HONG KONG ISSUES IN THE MARGINS
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At a meeting with Mr Goodlad this morning it was agreed that we should provide the Secretary of State with clutch cards for a possible word in the margins of Cabinet with:
Matters are coming
Mr Heseltine on HSBC/Midland/Lloyds.
to a decision point. Mr Heseltine will receive advice from
the Director-General of Fair Trading next week on whether to
refer to Lloyds' bid to the Monopolies and Mergers Commission and whether to seek an exit from Brussels to give
the HSBC/Midland bid similar treatment. Mr Goodlad has
written to Sir G Borrie, putting our case for HSBC. We
understand that the Chancellor is about to write to the
Prime Minister and colleagues, saying that he sees no reason to interfere with the Commission's study of the HSBC bid on taxpayer grounds, and that he sees merit in referring Lloyds to the MMC. This is helpful. To add to the momentum, the Secretary of State might underline to Mr Heseltine the possible damage in Hong Kong if HMG were now to try to hold up the HSBC bid for MMC consideration;
14/
BOPAFW/1
CONFIDENTIAL