CONFIDENTIAL
Democracy
- Our aim is to establish in Hong Kong before 1997 a system of government which includes a substantial element of democracy and which can endure and develop further after
1997.
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Present arrangements provide for steady progress towards eventual full direct elections, in line with the Basic Law.
New Governor
-It was announced on 24 April that Mr Christopher Patten (Chairman of the Conservative Party) will take over as : Governor of Hong Kong sometime during July 1992.
Mr Patten said he was delighted to have the privilege. to: serve as. the 28th Governor of Hong Kong.
Hong Kong and Shanghai Bank
(Treasury have emphasised this line should be strictly followed)
--Any bid is initially a matter for the two companies and their shareholders.
--Takeover: needs approval: of Bank of England (under ther _Banking, Act: 1987) and the competition authorities (almost-
certainly the European Commission under the European-Mérger Regulation).
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-We continue to attach great importance to the HSBC- remaining a healthy Bank and continuing to play its important role within Hong-Kong's financial system:
-We know of HSBC's longstanding interest. in expanding their operations into Europe. They already have a scloser
ALKACZZ22–
CONFIDENTIAL