TNAG-1023-FCO40-1273-Visits-by-officials-from-Hong-Kong-to-the-UK-1981 — Page 18

CONFIDENTIAL

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2

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HONGKONG AND SHANGHAI BANK BID FOR THE ROYAL BANK OF SCOTLAND

7. The bids made by the Standard Chartered Bank (SCB) and the

Hongkong and Shanghai Banking Corporation (HKSB) for the Royal Bank

of Scotland Limited are now being examined by the Monopolies and

Mergers Commission. Sir P Haddon-Cave appeared before the Commission

Commission's report is

on 6 August to give evidence on the relationship between the HKSB and

the Hong Kong Government and related matters.

not expected until January.

8.

FCO has taken no position on relative commercial merits of two bids.

Our concern to ensure that HKSB is not discriminated against on

grounds, such as its alleged non-Britishness, which might harm UK/Hong

Kong relations. Also need to avoid any suggestion in Commission's

report that either HKSB or Hong Kong itself has an uncertain future.

VIETNAMESE REFUGEES

Does not

9. About 15,000 refugees in Hong Kong awaiting resettlement.

include sizeable group who entered Hong Kong illegally after resettle-

ment in China and who are to be repatriated to China.

10. UK quota of 10,000 agreed at Geneva in 1979; last 200 remaining

places are about to be filled. Hong Kong is anxious that UK commitment

should continue so that other countries, especially the USA, maintain

their resettlement programmes to reduce the numbers of refugees still

in Hong Kong.

11. Mr Raison reiterated to Sir P Haddon-Cave on 8 September that he

saw no prospect of a fresh quota. There was some discussion of the

possibility of maintaining a minimal flow by other means (eg by

drawing on the family reunion system) but no conclusion was reached.

CONFIDENTIAL

/HONG KONG