TNAG-1030-FCO40-1280-Proposed-visit-by-Humphrey-Atkins--Lord-Privy-Seal--to-Hong--1981 — Page 78

CONFIDENTIAL: COMMERCIAL IN CONFIDENCE

LORD PRIVY SEAL'S VISIT TO HONG KONG: 8 TO 10 JANUARY 1982

BRIEF NO 9: HONGKONG AND SHANGHAI BANKING CORPORATION'S BID

FOR THE ROYAL BANK OF SCOTLAND

(FOR PERSONAL DISCUSSION WITH THE GOVERNOR)

POINTS TO MAKE

1.

Monopolies and Mergers Commission Report with Secretary

of State for Trade. Should be published before end January.

2.

(IN STRICTEST CONFIDENCE) Commission have recommended

both bids be rejected. In practice Mr Biffen will almost certainly

accept the recommendations. Conclusions carefully worded to meet

Hong Kong's concerns. We shall however examine the Report as

a whole to make sure that it does not imply criticism of Hong Kong

or doubt about its stability.

3.

Any views?

CONFIDENTIAL: COMMERCIAL IN CONFIDENCE