TNAG-1270-FCO40-1620-Financial-policy-in-Hong-Kong-1983 — Page 142

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MR LITTLER

Mr. Hum

SECRET

HKK 100/7

20 OCT 1983

From:

J B UNWIN

3 October 1983

CC

Mr Kerr

Mr Hudson

Mr Middleton

Sir T Burns

Mr Lavelle

Mr Giffard

Mr Holland

-

B/E

32

FCO

<COPY FOR

cc PS/PUS

Mr Clift HKD

Mr Donald

DESK OFFICER

REASTHY

INDEX

PA

tion Taken

HONG KONG

David Peretz telephoned me as arranged from Hong Kong this afternoon."

Mr Evans

ERD

2. He and Charles Goodhart have already talked to Tony Latter and will be seeing the Financial Secretary and others tomorrow. His preliminary reactions are:-

3.

the Hong Kong authorities have not thought the scheme through as far as he had expected. There is a good deal of continuing internal debate, though this relates more to the practical problems of implementation than the principle of the scheme;

he doubts, therefore, whether the scheme is likely to be introduced before the end of this week at the earliest, and there could be further delay (the Financial Secretary issued a statement over the weekend designed to tone down expectations a little);

both he and Charles Goodhart are now less concerned about the problem of convertibility than they were previously - Goodhart apparently accepts that he misunderstood the scheme on this point, but we were not able to pursue this further on the telephone.

Davić Peretz is planning to return overnight Wednesday so as to be back here on Thursday morning. If he needs telephone contact, he will telephone you or Ir Lavelle tomorrow. Otherwise he will aim to send us a reporting telegram tomorrow night or on Wednesday morning (Mr Giffard is kindly arranging for future telegrams on this subject to be circulated to the recipients of this minute).

In case you have not seen it, the Bong Hai today - crening at 8.175 and closing at 6.7. the Chinese Epatement and we furtles bark

Chie

mad again faleig

etly a

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