TNAG-1169-FCO40-1449-Future-of-Hong-Kong-1982 — Page 101

SECRET

29 March 1982

3.

Against this background, the absence of a central bank in Hong Kong is irrelevant. In any case the creation of such an institution would not in itself increase the resources available, or significantly improve the mechanisms for intervention which already exist.

4.

I explained all this to Christopher Mallaby who appeared to take the point. But in case it has not gone home I hope you will now firmly discourage the Planning Staff from pursuing the line of thinking out- lined in your teleletter. Apart from the dangers to which you refer, it can only cause confusion and divert attention from the real problem.

Your ever,

làm

(R JT McLaren)

SECRET