TNAG-0374-FCO40-420-Discussions-with-Sir-Murray-MacLehose--Governor-of-Hong-Kong-1973 — Page 161

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MR ROYLE

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HONG KONG : FINANCIAL MANAGEMENT AND INSTITUTIONS

1.

巍

Please see minutes below by Mr Holland and Mr Wilford. I agree with the general approach proposed on this delicate ground.

2.

But I cannot help feeling that, distrust apart, the Governor has rather misinterpreted your personal message in our telegram No 752 of 1 August; perhaps we were a bit too chary of using plain words. I suggest that we should not lose the opportunity of the forthcoming talks with him to try to get it across that we are not seeking to put in UK Advisers to supplant his own people in their management of Hong Kong's financial affairs but rather to field a team of acknowledged experts who would be able to study in consultation with the Hong Kong Government the problem of providing for the future what Hong Kong appears to lack, ie a properly constituted monetary authority.

3.

In advance of expert examination on the spot, we are not setting out to prejudge any of the answers as to what sort of institution might best suit Hong Kong's needs; and we fully recognise what a hot potato we shall be handling, particularly with the local Banks. The timing is obviously a matter for careful judgment and, as Mr Holland says, it may be (depending on the outcome over the Sterling Agreements) that this Autumn is a bit too early to start stirring this particular pot. But there is a clear and important need here, which in terms of HMG's responsibility for both Hong Kong's internal administration and her external relations, as well as in Hong Kong's own interests, we have full justification for asking the Hong Kong Government to study with us carefully and in depth; and it is not a matter, in this monetary day and age, which can be put off to the Greek kalends. Having said that, we should, as Mr Holland suggests, do everything we can to meet the Governor over points which may help to allay the suspicions and misapprehensions that may arise over this.

24 August 1973

Wen Wabz

(Duncan Watson)

Copies to:

Mr Wilford Mr Holland Me Stuart

CONFIDENT FATT