CONFIDENTIAL
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personal
CONFIDENTIAL
FM FCO
TO IMMEDIATE HONG KONG
TELNO 440
OF 06120OZ MARCH 92
PERSONAL FOR GOVERNOR FROM BURNS AUSS
FINANCIAL AND ECONOMIC DIALOGUE
1.
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MDHOAN 1031
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FOLLOWING OUR RECENT EXCHANGE OF TELEGRAMS (OUR TELNO 194
mot filed ) AND YOUR TELNO 429) AND SIMON BROADBENT'S USEFUL TALKS IN HONG
WE
KONG ON 18 FEBRUARY WITH THE FINANCIAL SECRETARY AND OTHERS, WOULD LIKE TO SUGGEST AN INFORMAL FCO/HKG DISCUSSION OF FORTHCOMING ECONOMIC/FINANCIAL ISSUES, PARTICULARLY THOSE LIKELY TO INVOLVE DISCUSSION WITH THE CHINESE. THE RATHER UNSATISFACTORY FEEL OF OUR RECENT EXCHANGES ABOUT CONTINGENT
LIABILITIES AND HOW BEST TO PRESENT THEM TO THE CHINESE POINTED
UP THE DIFFICULTIES OF DEALING WITH THESE QUESTIONS EFFECTIVELY BY TELEGRAMS AND CORRESPONDENCE. WE WOULD SEE GREAT ADVANTAGE IN GETTING TOGETHER FACE TO FACE TO REVIEW SOME OF THE ISSUES LIKELY TO CROP UP, NOT ONLY IN THE NEXT YEAR, BUT IN THE ENTIRE PERIOD TO 1997, AND TO REVIEW OUR STRATEGY FOR DEALING WITH THEM. IT MAY WELL BE THAT MUCH OF THE ACTION IS BEST LEFT FOR A LATER DATE. BUT WE WOULD LIKE TO HAVE A SENSE OF WHAT THE PROSPECTIVE PROBLEMS ARE AND HOW THEY FIT TOGETHER.
2.
IDEALLY SUCH A DISCUSSION SHOULD TAKE PLACE WHEN THINGS ARE QUIET, AND AFTER ADEQUATE PREPARATION AND DEFINITION. BUT EVEN IF SUCH A MOMENT COULD BE FORESEEN, WE HAVE AN URGENT NEED TO BE PROPERLY PREPARED FOR DISCUSSIONS WITH NEW MINISTERS. THERE WOULD BE ENORMOUS VALUE TO US IN GOING OVER THE GROUND BEFORE THE ELECTION.
3.
BROADBENT, COX (OR RICKETTS) AND I WOULD BE HAPPY TO COME TO HONG KONG FOR THIS PURPOSE, AND WE IMAGINE THIS WOULD BE LESS INCONVENIENT FOR YOU THAN SENDING A TEAM OVER HERE. WE SHOULD LIKE TO HAVE PROPOSED COMING IN THE WEEK OF 16 MARCH WHEN RACHEL LOMAX (TREASURY) WAS ORIGINALLY DUE TO VISIT, BUT THE CALENDAR IS DIFFICULT AND OF COURSE YOU WILL HAVE JOHN COLES WITH YOU THAT WEEK. THE WEEK BEGINING 30 MARCH REALLY LOOKS THE ONLY PRACTICAL POSSIBILITY FOR US BEFORE THE ELECTION. ONE VARIANT WOULD BE TO START WORK ON 27 MARCH AND 28 MARCH MORNING, THEN TO REFLECT FURTHER OVER THE WEEKEND ON THE ISSUES IDENTIFIED BEFORE
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CONFIDENTIAL