TNAG-1237-FCO40-1550-Future-of-Hong-Kong-1983 — Page 9

CONFIDENTIAL

MKK040/1SGD 3/02

#

E

18 MAY 1983

BOO

HE through CS, FS

Future of Hong Kong:

Visit to Peking

See (301)

by Deputy Chairman of Hongkong and Shanghai Banking Corporation

Mr A J N Russell, the Bank's Area Manager, China, called on me on 4 May to report on Mr Hammond's recent visit to Peking. He gave me the attached copy of a note which he had prepared giving a near-verbatim account of the call on LIAO Chengzhi. (I have also received

a copy by bag from Sir P Cradock, who has sent the record

to Mr Donald).

2.

Mr Russell was clearly somewhat embarrassed about the call. Speaking personally, he recognised that an Opportunity had been lost. He blamed himself for not providing Mr Hammond with a fuller briefing, and for not warning him about the ritual involved in meetings with Chinese leaders. As it was, Mr Hammond's wish to keep

Mr Russell the meeting short had been all too evident. thought that LIAO had been prepared to continue for longer.

3.

Concluding, Mr Russell said that at least no harm had been done. I said that this was true in the sense

But that the way was left open for further meetings. LIAO could have got the impression that the HSBC had no particular concern about the future of Hong Kong and this would be unfortunate. Mr Russell strongly agreed. He said that he had it in mind to promote a better prepared visit, either by Mr Hammond or by Mr Sandberg. would clearly have to wait for a few months. was not particularly keen to go to Peking.

But this

Mr Sandberg

cc S (GD)

Sir P Cradock KCMG A E Donald Esq CMG

(R J T McLaren)

PA

5.5.83 CONFIDENTIAL