TNAG-1721-FCO40-2401-Hong-Kong-1987-Review-of-Representative-Government-delegati-1988 — Page 180

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CONFIDENTIAL

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FROM: PS/Lord Glenarthur DATE: 12 January 1988

CC: Private Secretary

PS/Mr Eggar

Mr McLaren

News Department....

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12

HONG KONG: LORD GEDDES

1. Lord Geddes called on Lord Glenarthur for thirty minutes this afternoon, at his own request, to discuss his visit to Hong Kong in October (he had forgotten a previous appointment made for this purpose).

2.

Lord Geddes said that he had been in Hong Kong for Black Monday. He had been appalled that the Stock Exchange had closed for four days rather than, for example, one. Chinese contacts in Hong Kong nad been particularly concerned by the possible long term effect of this on the territory's standing as a financial centre. Lord Glenarthur said that this had been a decision by the Stock Exchange. A number of important steps had now been taken to improve the situation. Lord Geddes said that it was well understood in both Hong Kong and London that neither the Governor nor Whitehall had been responsible for the closure.

3.

Lord Geddes handed over a selection of newspaper articles (which he would like back in due course) sent to him by an economist in Hong Kong, Mr George Hicks, whom Lord Geddes did not know. Lord Geddes did not endorse the points made in the articles, which reflected the Martin Lee school of thought. But he feared that Hong Kong was getting more jittery by the minute, and that critics of HMG were getting the better of the public relations battle. had perceived a growing belief in Hong Kong that London was distancing itself from Hong Kong and had caved in to Peking.

4.

He

Lord Glenarthur said that we were looking at what more we could do to present our policies. This should be easier once the White Paper on representative government had issued, although Martin Lee and his friends were unlikely to be satisfied by anything that was politically viable. It was of course absurd to argue that we were distancing ourselves from Hong Kong. The Commons debate on 20 January should provide reassurance on this.

/5. Lord

CONFIDENTIAL

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