TNAG-1270-FCO40-1620-Financial-policy-in-Hong-Kong-1983 — Page 150

SECRET

THE EXCHE

CHANCELLOR OF

EQUER

Bank (whose economic advice the Hong Kong Financial Secretary himself has asked for) will therefore fly to Hong Kong over the weekend.

It is of course important that this visit should be conducted with the utmost secrecy and discretion. Any impression that HMG were now actively intervening in the management of the Hong Kong financial system could radically change the nature of the current political negotiations with China. However,

if

-

as it is not unlikely - the presence of Peretz and Goodhart in Hong Kong is observed, the line to take in response to any enquiries would simply be that they are visiting Hong Kong to acquaint themselves with the current financial situation. As Mr Luce made clear in a public statement in his recent visit to Hong Kong, the action to defend the value of the Hong Kong dollar is a matter for the Hong Kong government.

I understand that the Foreign and Commonwealth Secretary agrees with the Chancellor's reactions to the Hong Kong proposal, and to the immediate visit by Peretz and Goodhart.

I am copying this letter and enclosures to Brian Fall (FCO) and John Bartlett (Bank of England).

Jour

ever,

2ch

жекеш

Kew.

J O KERR

SECRET

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