TNAG-0623-FCO40-771-Hong-Kong-Government-investments-in-South-African-stocks-1977 — Page 5

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RIJAVED A

REGISTRY NO. 51

5 MAY 1977

JJKX102/1

r Butler

PS/Lord Gororwy-Roberts

CROWN AGENTS:

Problem

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Mr. Delti Eucer

feel

FRD,

P/A

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RD, cleared their draft with and thigh I

advised gauft saying What

INVESTENTS IN SOUTH AFRICAN STOCKS

if in the

fuath hart of power. 7

post

Dim

515

1. Lord Goronwy-Roberts agreed to the recommendation in br Stewart's submission of 21 April that the Crow Agerts' rôle with regard to the purchase of South African stocks should be further examined. What is the position and what further action

needs to be taker?

Back round

2. We have contacted the Crow Agents at senior official level and asked them if ary investments in South Africa stocks had been made by them on behalf of any Deperdert Territories besides Hong Kong since 1970. They have checked their records and the answer is no. Hong Kong is the only example.

3. The Crown Agent's have corffrued that it is now extremely unlikely that they will be asked by the administrations of Dependencies to invest in South Africa, and even more u likely that Crown Agents would invest there without their Principals' knowledge.

4. We reminded the Crown Agents of the political objections to purchasing South African stocks. They took the point readily and agreed to give us advance rotice in the unlikely evert of a proposal being made by, or on behalf of Dependencies, to purchase South African stocks. We will thus have a chance to intervere'

if necessary.

Argument

·age -

5. The whole question of the Crow Agents' future money manage mert activities are being examined by the I terdepartmental Working Group. The question of investert in South Africa is a short term one only and, as we row know, unlikely to be repeated.

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