TNAG-1023-FCO40-1273-Visits-by-officials-from-Hong-Kong-to-the-UK-1981 — Page 28

CONFIDENTIAL

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HONGKONG AND SHANGHAI BANK BID FOR THE ROYAL BANK OF SCOTLAND

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

Hongkong and Shanghai Banking Corporation (HKSB) for the Royal

Bank of Scotland Limtied are now being examined by the Monopolies

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

Commission on 6 August to give evidence on the relationship

between the HKSB and the Hong Kong Government and related matters.

Commission's report is not expected until January.

10.

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

12.

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

Does not include sizeable group who entered Hong Kong illegally

after resettlement in China and who are to be repatraited to China.

UK quota of 10,000 agreed at Geneva in 1979 has not yet

been completely 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.

13. 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.

Hong Kong and General Department

8 September 1981

CONFIDENTIAL