JA
9 The Governor assured Mr Li that the Bank saw HSBC's continuing role in Hong Kong in the same way as Mr Purves. If any alternative move had been in prospect the Bank would not have given HSBC permission to bid for Midland. As a result the present central role of HSBC in Hong Kong would not be affected. There was also the question of the proposed monetary authority in Hong Kong and the Governor understood that discussions were to be held with the
Chinese government in the near future.
10 Mr Li expressed concern for the confidence of Hong Kong people in HSBC if the Chairman were to move to London. The Governor assured Mr Li that Mr Purves would remain based in Hong Kong until
he retired at the end of 1993. After that the new Chairman of the
HSBC Group would be based in London. Mr Li reiterated that he had
stressed to Mr Purves that he should remain in Hong Kong and the Governor said that he fully understood the symbolism. However, the Governor pointed out that Mr Purves had this year been the President of the International Monetary Conference held recently in Toronto: this internationally high-profile role brought great prestige for HSBC and therefore for Hong Kong.
11 A further issue which Mr Li wanted to bring to the Governor's attention and on which he sought the Governor's support was China's position in the BIS. There was a problem for China over the position of Taiwan. In the Asian Development Bank, where China and Taiwan were both members, Taiwan was referred to formally as Taipei China. He would like Taiwan to carry the same title in the BIS. He had already approached Schlessinger, Ciampi and Godeaux about this and hoped that the Governor would consider supporting China on
this issue.
12
The Governor thanked Mr Li for raising this question and undertook to make enquiries.
Developing World Division
HO-3
Senior Adviser, Asia & Australasia 24 June 1992
C D Elston (4265)
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