TNAG-1946-FCO40-2772-Taiwanese-banks-in-Hong-Kong-1989 — Page 4

CONFIDENTIAL

FM PEKING

TO PRIORITY FCO

TELNO 131

OF 310627Z JANUARY 89

INFO PRIORITY HONG KONG

CONFIDENTIAL

2

040772

MDLIAN 2801

[HKC102/1

31..

TOP CC DIST

HONG KONG TELNO 333. TAIWANESE BANKS IN HONG KONG.

1.

WE AGREE THAT THE CHINESE ARE UNLIKELY TO OBJECT TO THE GRANTING OF A HONG KONG BANKING LICENCE TO THE FIRST COMMERCIAL BANK OF TAIWAN. THE FACT THAT THEY HAVE NOT OBJECTED TO THE ESTABLISHMENT OF A BRANCH OF THE BANK IN LONDON AND THE UNOFFICIAL INDICATIONS FROM THE BANK OF CHINA AND CITIC WOULD SEEM TO BEAR THIS OUT. WE HAVE WARNED ON OTHER OCCASIONS, HOWEVER, THAT WE SHOULD NOT NECESSARILY VIEW THE CURRENT STATE OF PEKING/TAIBEI RELATIONS AS A BAROMETER FOR WHAT THIRD COUNTRIES MAY DO (PARA 4 OF TUR): THE CHINESE ARE KEEN THAT THEY SHOULD CALL THE SHOTS AND THAT THE PACE OF ANY RAPPROCHEMENT SHOULD NOT BE SET BY OTHERS.

WE AGREE THAT IT WOULD BE SENSIBLE TO INFORM THE CHINESE IN ADVANCE IF IT WERE DECIDED TO GRANT FIRST COMMERCIAL A LICENCE.

2 "

DONALD

YYYY

ΜΑΙΝ

48

.HONG KONG AGREEMENT

.(RESTRICTED)

LIMITED

HKD

HD/FED

RESEARCH (FE)

DISTRIBUTION

51

ADDITIONAL

3

PAGE

PUSD

PS/LORD GLENARTHUR

PS/MR EGGAR

MR GILLMORE

MR MCLAREN

1

CONFIDENTIAL