TNAG-1649-FCO40-2296-Hong-Kong-Commissioner-of-Banking-s-annual-report-for-1986--1987 — Page 100

CODE 18-77

Mr Thomas

HKD

Reference....

02/7 4

COMMISSIONER OF BANKING: ANNUAL REPORT FOR 1986

1.

Your minute of 13 March.

2. I have no particular comments on this Report, which is a good descriptive account of recent developments in Hong Kong's financial system and changes in the involvement and supervisory role of the Commissioner of Banking. Some controversial episodes are smoothed over (Ka Wah and CITIC's takeover for example) but public criticism is referred to (see para 42).

The statistical tables are a very useful summary of relevant data (I would be grateful for a copy of this section of the paper, or the whole thing if DRC could be prevailed upon).

3.

4. It would be a pity if HKG were to decide not to publish the Report. It refers to the need to preserve confidence and stability; publication could make a small contribution to public knowledge and approval of HKG's activities in this area.

Nick Kallett

N O Hallett

Economic Advisers WH 426B

270-2727

16 March 1987