CONFIDENTIAL
042312
17
MDHIAN
5.
EXCO HAS ASKED FOR A SHORT NOTE ON HOW THESE POINTS WOULD BEST BE PRESENTED TO THE CHINESE AND THE IMF BEFORE GIVING THE GO AHEAD. WE WILL ALSO KEEP IN MIND THE POSSIBILITY THAT, IF IT LOOKS AS THOUGH ARRANGING THE CONFERENCE JUST AFTER THE TRANSFER OF SOVEREIGNTY WILL BECOME UNMANAGEABLY COMPLICATED, OR AS THOUGH WE CANNOT GET THE ASSURANCES WE NEED ON MAKING CLEAR HONG KONG'S UNIQUE POSITION, EG ON LINES OF THE BERLIN PRECEDENT, WE MIGHT HAVE TO STEP BACK FROM MAKING A FORMAL OFFER TO HOST THE
CONFERENCE.
6. WHILE WE ARE GETTING OUR POSITION CLEAR AND BEFORE WE GO BACK TO THE IMF, IT WOULD BE BETTER NOT TO HAVE ANY FURTHER EXCHANGES WITH THEM OR THE CHINESE. YOU MAY THEREFORE WISH TO COPY THIS TELEGRAM TO UKDEL WASHINGTON. IT IS IMPORTANT OF COURSE THAT NOTHING SHOULD BE SAID TO EITHER THE IMF OR THE CHINESE TO SUGGEST THAT OUR FEET HAVE BEEN GETTING SLIGHTLY CHILLY.
WILSON
YYYY
MAIN
MONETARY
HKD
FED
NNNN
145
DISTRIBUTION
145
SIR J COLES
MR BURNS
2
PAGE CONFIDENTIAL
1