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HOF0017/03
DD FCO 03090OZ
GR 600
SECRET
DESKBY 03090OZ -
FM HONG KONG 030812Z JAN 84
TO IMMEDIATE FCO
TELEGRAM NUMBER 5 OF 3 JANUARY
ORIEL
0847/03
DD
HD HKD.
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ADVANCE COPY
IMMEDIATE
NO DISTRIBUTION
STRICTLY PERSONAL FROM GOVERNOR FOR CLIFT, HONG KONG DEPT: YOUR TELNO 1398: FINANCIAL PLANNING
1. I HAVE TELEGRAPHED SEPARATELY TO SAY THAT I SHALL BE GLAD TO
SEE THE BANK OF ENGLAND ON FRIDAY 13 JANUARY.
2. AS REGARDS YOUR PARA 3 I AGREE THAT WE SHOULD NOT WAIT ON EVENTS. THAT IS EXACTLY WHY WE SENT BLYE HOME TO TALK TO BOTH
THE BANK AND THE TREASURY.
3. ON PARA 4 OF YOUR TELEGRAM, AS BLYE MADE CLEAR IT IS VERY DOUSTFUL WHETHER ANY MEANINGFUL ESTIMATE OF THE DEGREE OF EXPOSURE OF DIFFERENT HONG KONG BANKS CAN BE MADE, MOT ONLY BECAUSE OF THE SLCSEGY PROVISIONS OF THE DANKING ORDINANCE, BUT BECAUSE OF
THE LARGE NUMBER OF LOCALLY INCORPORATED DEPOSIT TAKING HISITUTIONS
IN HONG KONG. WE ASSUME THAT RESPONSIBILITY FOR THE LIABILITIES OF
MANCHES OF OVERSEAS INSTITUTIONS LIES OVERSEAS AND HOT HERE.
THE DEGREE OF EXPOSURE DEPENDS A GREAT DEAL ON THE QUALITATIVE
ASSESSMENT OF BANK LENDING - SOMETHING WHICH IT IS NOT WITHIN OUR
POWER TO ASSESS. BUT WE ARE LOOKING FURTHER INTO THIS AND THE PROPOSED! REVIEW OF OUR SUPERVISORY SYSTEN 2Y BANK OF ENGLAND EXPERTS IN
FLAPUARY/MARCH WILL RE VERY RELEVANT. I WILL E RAISING THIS PEVILU
ITH THE PUS WHEN I CALL ON HIM IN LONDON.
AS REGARDS PARA 5 OF YOUR TELEGRAP I AM NOT CLEAR WHAT THE
A
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