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FROM:
PF Ricketts
Hong Kong Department
4/11
L6 DEL 1993
DATE:
3 November 1993
CC:
Mr Fry, FED
H
Mr A31/11
PS/Mr Goodląd
Mister
Mr Tebbitt, ERD
Pe
42
MEETING BETWEEN THE CHANCELLOR AND SIR WILLIAM PURVES:
21 OCTOBER 1993
A
1.
You asked for advice on Sir William Purves' allegation
that the Chinese authorities have discriminated against the
Hong Kong and Shanghai Banking Corporation (HSBC) as a result
of Sir William's membership of ExCo and the Bank's move to
London. We have checked discreetly with Hong Kong.
2.
This allegation has come as something of a surprise.
Neither we nor Hong Kong have heard anything to suggest that
HSBC's problems with China, if any, have arisen from Sir William's membership of ExCo. Indeed, the Chinese are more likely to have given Sir William some credit for not giving
full support to the Governor's constitutional package (he has
not hidden his doubts about the Governor's approach).
3.
If there is discrimination, it is much more likely to be
as a result of HSBC's decision to move its mind and management
to London as part of the takeover of Midland. This was a commercial decision taken in the full knowledge that it could
damage HSBC's standing in China. In fact, the Chinese reaction has been much more mild than we (and HSBC) dared to
hope at the time.
hum3.11/MIN/NJH