TNAG-1237-FCO40-1550-Future-of-Hong-Kong-1983 — Page 67

GRS 386

SECRET

FROM PEKING 280725Z APR 83

TO PRIORITY FCO

SECRET MKK0401

RECEIVED N

TELEGRAM NUMBER 386 OF 28/4/83

MAY 1933

DESK OL

INDEX

PA

m

INFO

PRIORITY HONG KONG

FUTURE OF HONG KONG:

AND SHANGHAI BANK.

99.51

SPOISTRY

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ICMI|S

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a couple of month ago about Hammand's pornble next. раты

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VISIT BY DEPUTY CHAIRMAN OF HONG KONG

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271

1. HEHAMMOND, ACCOMPANIED BY Q Y LEE OF THE HANG SENG BANK AND LANGLEY, HUEY AND RUSSELL OF HONG KONG AND SHANGHAI BANK (HKSE, CALLED ON ME ON 27 APRIL AND LEFT A NOTE OF THEIR MEETING WITH LIAO

CHENGZHI EARLIER THAT DAY. FULL TEXT BY BAG.

2. UN THE MEETING WITH LIAO HAMMOND CONFINED HIMSELF TO EXPLAIN- ING BRIEFLY THE RELATIONSHIP BETWEEN HKSB AND THE HONG KONG GOVERNMENT AND REFERRING TO LACK OF CONFIDENCE IN THE HONG KONG

DOLLAR IN THE LAST FEW WEEKS. LIAO MADE UNDERSTANDING NOISES AND

SAID CHINA AND BRITAIN HAVE A GOOD RELATIONSHIP. WE HAVE HIGH REGARD FOR THIS RELATIONSHIP. WHATEVER WE DO IS INTENDED TO IMPROVE THIS FRIENDLY RELATIONSHIP. ALTHOUGH YOU DO NOT SAY IT, I CAN TELL YOU THAT I BELIEVE THAT EVERYTHING WILL BE SETTLED VERY

WELL. WHAT IS TO BE SURE IS THAT WHATEVER CHANGES TAKE PLACE IN HONG KONG IN FUTURE, HKSB WILL CONTINUE TO EXIST AND WE WELCOME YOUR EXISTENCE. WE ARE ALSO CONCERNED ABOUT THE DECLINING TREND OF THE HONG KONG DOLLAR. BELIEVE THAT OUR BRITISH FRIENDS AND HKSB WILL DO WHATEVER THEY CAN TO IMPROVE THE SITUATION.

I BELIEVE IT IS TEMPORARY, AND WILL NOT LAST VERY LONG. IT CANNOT LAST VERY LONG. THE HONG KONG DOLLAR IS IMPORTANT TO

CHINA.

3. LATER, LIAO SAID I WOULD LIKE TO TALK MORE ABOUT A WIDE RANGE OF SUBJECTS WITH SENIOR MANAGEMENT FROM HKSB BUT AS TIME IS SHORT NOW WE WILL HAVE TO LEAVE THAT FOR THE NEXT OCCASION. I AM SURE THAT THE QUESTION OF CONFIDENCE AND THE WEAKNESS OF THE HONG KONG DOLLAR CAN BE SOLVED VERY SOON. I AM VERY OPTIMISTIC ABOUT THE FUTURE. HE ALSO WELCOMED THE SUGGESTION OF ANOTHER CALL BY HAMMON WHEN THE LATTER WAS IN PEKING AGAIN.

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/COMMENT!