TNAG-1173-FCO40-1465-Future-of-Hong-Kong-special-study-by-FCO-for-the-Prime-Minis-1982 — Page 266

OO HONG KONG DESKBY 260100Z

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DESKBY 260100Z

FM FCO 251415Z AUG 82

TO IMMEDIATE HONG KONG

TELEGRAM NUMBER 663 OF 25 AUGUST

PERSONAL FOR GOVERNOR

1. YOUR TELNO 646. BANK OF ENGLAND HAVE SUGGESTED DELETING

LAST SENTENCE OF PARAGRAPH ONE, AND REPLACING WITH:

'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 BELOW, 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.

GRATEFUL TO KNOW IF THIS IS ACCEPTABLE TO YOU DESKBY 260900Z.

PYM

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