CONFIDENTIAL

receive a full banking licence.

The Hong Kong

Administration have regarded Jardines' pressure on this as

a case of Jardines wanting their cake and eating it: moving

their HQ, mind and management away from Hong Kong, while expecting Jardine Fleming to be treated as if it was owned by Hong Kong interests. Now that Jardines and HKG are no longer at loggerheads over the listing issue, it may be easier to tackle this problem. But in practice, it will probably have to await the new Governor.

Hong Kong Department

KEWADJ/2

CONFIDENTIAL

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