TNAG-0623-FCO40-771-Hong-Kong-Government-investments-in-South-African-stocks-1977 — Page 65

1

Mr Stewart

RESTRICTED

Reference.....

Spoken to du. Frawend

Fuler, attach ppor Sterling Rezener

HONG KONG: INVESTMENT IN SOUTH AFRICAN STOCK

1.

& velum tome please.

Din=6y

I notice in the latest Annual Report of the Director of Accounting Services, Hong Kong at Statement 6 (p 113) that the deployment of Hong Kong's surplus financial balances include a significant investment in South African stock totalling 11 stocks in all.

2.

Most of the stock held (not necessarily purchased recently) is for either general South African Government use or specific local industries, eg: iron and steel. Though these stocks are Euro-currency loans expressed mainly in Deutschmarks their use is undoubtedly within South Africa, and I just wonder whether it is consistent with HMG's policy regarding investment in South Africa. The recent meetings between the Minister of State (Mr Rowlands) and Barclays Bank over the latter's involvement in South African Defence Bonds led, I understand, to some agreed public line.

3.

I appreciate I may be "barking up the wrong tree" but I thought I should bring this to your attention.

women tunn

25 January 1977

Cc:

Mr Reid (CSAD)

RESTRICTED

Adrian Smith G72A/G

8815

RECEIVE IN RESTRY No. 51

26 JAN 1977

102/01 AKK108/3.