TNAG-0766-FCO40-970-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 125

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

00 DO I

GR 275

CYPER/CAT A

FM BTC HONG KONG 131201Z

CONFIDENTIAL

бо

TOP+3=501

горта

DOTRES (2) День De HAGD dell Deniza

K129 X3.HKK.164/1

TO IMMEDIATE D.0.1 TELNO.INDUS 7 OF 13 JAN 78.

FOR LIPPITT.

M.I.P.T.

No

See

113

1. I FEAR THAT BOTH SIR LAWRENCE AND SIR SIDNEY GORDON ARE

ADAMANT THAT THEY WILL HAVE NOTHING TO DO WITH LAZARDS. 1 HAVE BEEN SUBJECTED TO A TIRADE AGAINST HUGO KINDERSLEY WHO IS ALLEGED TO HAVE THREATENED AND ABUSED CLP IN AN UNNACCEPTABLI

MANNER.

2. I COULD MAKE NO IMPRESSION WITH THE ARGUMENTS IN THE FINAL PARAGRAPH OF YOUR INDUS 8 AND, WHILE POINTING OUT THAT THE RESPONSE WAS 180 DEGREES FROM OUR PROPOSALS, HAD TO AGREE TO FORWARD IT TO YOU.

3. THE DISPUTE WILL SPILL OVER TO OUR PUBLICITY PROPOSALS. CLP WISH ALL REFERENCES TO LAZARD'S WORK ON THE HONG KONG DOLLAR OFFER TO BE EXCISED AND REQUEST THAT SCHRODERS SHOULD BE PRESENT AT YOUR UNATTRIBUTABLE PRESS BRIEFING. SIR LAWRENCE AT ONE TIME SAID THAT UNLESS HIS VIEWS ON SCHRODERS LEADING ROLE WAS ACCEPTED HE WAS PREPARED TO ABANDON THE WHOLE DEAL AND SIR SIDNEY SAID THAT HE WOULD RESIGN FROM THE BOARD OF ANY COMPANY WHICH WAS PREPARED TO DEAL WITH LAZARDS.

4. I UNDERSTAND THAT SIR SIDNEY'S ANGER STEMS FROM THE TIMING

OF LAZARD'S PRESS ANNOUNCEMENT OF THEIR ARRANGEMENT OF A HONG KONG DOLLAR FACILITY FOR THE NEXT PHASE OF THE MASS TRANSIT RAILWAY BUT, I DO NOT OF COURSE HAVE ANY BACKGROUND TO THE ORIGINS OR REAL REASONS FOR THE DISPUTE. ! RECOMMEND THAT

YOU SHOULD EXPLAIN THE SITUATION TO HADDON-CAVE AS THE HONG

KONG GOVERNMENT SHOULD BE AWARE OF THE CLP'S DIFFERENCES WITH SUCH AN IMPORTANT U.K BANK. SIR LAWRENCE HAS SENT COPIES

OF YOUR MESSAGE AND HIS RESPONSE TO THE GOVERNOR.

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