TNAG-2028-FCO40-2890-Hong-Kong-freezing-of-Kuwaiti-and-Iraqi-assets-1990 — Page 29

CONFIDENTIAL

FM FCO

TO DESKBY 22010OZ HONG KONG

TELNO 1558

OF 21180OZ AUGUST 90

INFO ROUTINE PEKING

CONFIDENTIAL

MKB 020/20

RECEIVER IN

24 AUG 1990

102

106057 MDHOAN 4789

GULF CRISIS: IMPLICATIONS FOR HONG KONG

1.

THE COUNSELLOR AT THE CHINESE EMBASSY RESPONSIBLE FOR HONG KONG AFFAIRS (LIN ZHIYING) HAS ASKED TO CALL ON THE HEAD OF HONG KONG DEPARTMENT TO DISCUSS THE IMPLICATIONS FOR HONG KONG OF THE GULF CRISIS. A MEETING HAS BEEN ARRANGED FOR 11.30 LONDON TIME ON 22 AUGUST. LIN HAS TOLD US THAT HE WOULD LIKE OUR ASSESSMENT OF THE EFFECT OF THE CRISIS ON HONG KONG'S FUTURE PROSPERITY AND STABILITY.

2. WE IMAGINE THAT YOU MAY WELL HAVE ALREADY UNDERTAKEN AN ANALYSIS OF THIS SUBJECT, AND IT WOULD BE MOST HELPFUL TO HAVE AN ACCOUNT OF YOUR THINKING SO FAR. SUCH AN ACCOUNT MIGHT COVER, FOR EXAMPLE, THE SHORT/MEDIUM TERM RESULTS OF THE LOSS OF IRAQI/KUWAITI BUSINESS, BOTH IN THE FINANCIAL MARKETS AND AS TRADING PARTNERS (INCLUDING TRADE IN INVISIBLES). IT WOULD ALSO BE HELPFUL TO HAVE AN ASSESSMENT OF THE POSSIBILITY OF ANY INTERNAL DISORDER OR TERRORIST ACTIVITY WHICH MIGHT BE PROVOKED BY OR ON BEHALF OF THE IRAQIS OR THEIR SYMPATHISERS.

3.

HURD

GRATEFUL FOR A REPLY DESKBY 220900Z.

YYYY

ΜΑΙΝ

IRAQ/KUWAIT

LIMITED

MED

235

DISTRIBUTION

279

HKD

FED

ADDITIONAL 44

IRAQ/KUWAIT

(PASSED TO EMERGENCY UNIT)

1

PAGE CONFIDENTIAL

MR YAXLEY, (PERSONAL) HKGO LDN

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