TNAG-1173-FCO40-1465-Future-of-Hong-Kong-special-study-by-FCO-for-the-Prime-Minis-1982 — Page 255

CODE 18-77

Mr Hoare

SECRET

Reference

31

PA никочо

HONG KONG STUDY

Currency and Finance

APZ7/18

1. Mr Loehuis (Bank of England) rang to propose an amendment to counter an addition which we had proposed. They do not like, as we expected the bald reference to HMG's responsibility in the last resort in paragraph. They prefer its deletion and the substitution of the following addition to the end of paragraph 9:

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'Hong Kong Government. It has to be said however that in the event of a major financial crisis which could not be contained in the manner set out in paragraphs 6-8 above, there is no doubt that the outside world would regard HMG as ultimately responsible. This is a matter of considerable awkwardness in view of the fact that the UK authorities neither control nor supervise Hong Kong's financial system. '

2. Please discuss with Mr Broadbent (Economists). to clear again with Hong Kong? I suspect we do. provocative.

Do we need It is quite

24 August 1982

R D Clift

SECRET

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