TNAG-1267-FCO40-1616-Economic-situation-in-Hong-Kong-1983 — Page 306

Mr Burton

urt

Mr Clift o.r.

SECRET

Reference

MIKK090/4

RECEIVED IN REGISTRY NO. 51

27 JUN 1983

DESK OFFICE. INDEX

PA

REGISTRY Action Taken

(15

E attached

THE ECONOMIC SITUATION IN HONG KONG

1.

Please see Mr Broadbent's minute below (folio 14).

I was not aware that ESID were doing some work on this. It is fine as it stands but I am not sure where it gets us.

2.

3.

I am not happy about para 4, ie: the proposal to pass the material to the Bank of England and the Treasury (particularly since there has recently been a highly confidential meeting on this subject between the PUS and Lord Richardson). I am not sure either that the Hong Kong Government would welcome being asked to comment. As we know, they are extremely touchy about any hint of our poking our noses into their internal financial affairs.

I should be grateful if you would add your comments on ESID's minute and notes, for Mr Clift to see early next week.

4.

5.

Before passing the file on however, would you please see that a copy of Hong Kong telno 791 of 10 June summarising the state of confidence goes onto this file (it is referred to at folios 11 and 12; I copied it to ESID). In the light of that telegram and the Governor's strong views I understand the Cabinet Office have shelved, for the moment, the idea of a JIC Assessment on this subject; but it could well raise its head again before long, in which case ESID's notes may be useful as a contribution.

CODE 18-77

21 June 1983

نم الها

W Morris

du Monis

1. I

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from common sense

am

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without more figures, i

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the Treasury

be commenting on it would not seem very useful o

injuly detailed agment abo

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a

figures wald,

assure, be

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spel indred

ecaramic

models. The only sarce for

Hang Kory Goverment them selves.

The Bută 24/6

SECRET