CONFIDENTIAL
Mais 102/2...
(130,
042000
MDHIAN 5490
TOP COPY
Q DIST?
CONFIDENTIAL
FM PEKING
TO IMMEDIATE FCO
TELNO 732
OF 270821Z MAY 92
AND TO PRIORITY HONG KONG, UKREP JLG HONG KONG
M.274
PERSONAL FOR BURNS, AUSS
FROM AMBASSADOR
HONG KONG PERSONAL FOR GOVERNOR
FCO TELNO 856 TO HONG KONG: HSBC/MIDLAND/LLOYDS
1. I DO NOT SEE ANY ADVANTAGE IN DRAWING THE ATTENTION OF THE CHINESE TO MR HESELTINE'S DECISION. IF WE WERE TO DO SO WE WOULD NEED TO EXPLAIN EXACTLY WHAT IT MEANT, WHICH WOULD NOT BE EASY GIVEN CHINESE UNFAMILIARITY WITH THE UK DOMESTIC AND EUROPEAN PROCESSES CONCERNED. WE WOULD ALSO HAVE TO BE READY TO RESPOND TO QUESTIONS ABOUT WHAT LAY BEHIND THE DECISION, WHETHER HMG NOW FAVOURED THE HSBC BID, AND WHAT WE WERE DOING TO ENSURE THAT HONG KONG'S FINANCIAL STABILITY WAS NOT DAMAGED BY HSBC'S ACTIONS. SINCE THERE IS NOT A GREAT DEAL WE CAN SAY AT PRESENT WHICH THE CHINESE WOULD FIND REASSURING I SHOULD PREFER NOT TO VOLUNTEER INFORMATION AT THIS STAGE. THE CHINESE EMBASSY IN LONDON SHOULD HAVE REPORTED MR HESELTINE'S STATEMENT.
MCLAREN
YYYY
DISTRIBUTION
38
MAIN
38
HKD
FED
PS/MR PATTEN PS/PUS
ECONOMIC ADVISERS
SIR J COLES
ERD
MR CROWE
PS
PS/MR GOODLAD
MR BURNS
MR BONE
HMMM
PAGE 1 CONFIDENTIAL