Classification

SECRET

OUT TELEGRAM

ZCZC

1

Z CZ C

TC

2

SECRET

CAVEAT

3

FM

4

FM FCO

ΤΟ

5

TO IMMEDIATE HONG KONG

TELNO

6

TEL NO

OF

7

OF 03160OZ FEBRUARY 1992

AND TO

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Caveat

Da

Precedence

IMMEDIATE

INFOR PRIORITY PEKING, UKRER JLG HONG KONG

10

PERSONAL FOR GOVERNOR

11

PEKING PERSONAL FOR AMBASSADOR

12

UKREP JLG HONG KONG PERSONAL FOR PAUL

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14

YOUR TELNOS 124 AND 175: CONFIDENTIAL FINANCIAL DIALOGUE

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1.

We have no comments on the proposed agenda items A or B.

2. On item C, the proposed new liquidity adjustment facility,

we think it would be preferable to await the outcome of the

present review of monetary arrangements with which Bank of

England officials are assisting, before reaching definite

conclusions on this and briefing the Chinese in detail. Could

you please consider this further: perhaps it would be best just

to give the Chinese an indication of preliminary thinking?

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///

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EXCHANGE FUND

//

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3. On agenda item d, we

await the outcome of the

also think definite decisions should

review mentioned in para 2. Subject to

YYYY

MAIN

File number

ADDITIONAL

cj1

NNNN

Dept

Caithness

Authorised for Initials Date/time;

Catchword:

Drafted by (Block capitals)

hewitt/tibber

despatch by:

M:

Telephone no

270 2091

03.02.91

Telegram number

Processed by

For COD Comcen reference use only

Bas 270224/8107414 50m 3/88 P

YF86

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