CONFIDENTIAL
A
Background
3. Mr Henry Keswick, the Chairman of Matheson and Co (and
also Chairman of the Hong Kong Association) has long been a
vocal critic of the Governor and the Hong Kong Government.
His attacks on the Governor are increasingly being seen as something of a personal vendetta. At a meeting with
Mr Keswick on 30 July, the Secretary of State made clear
that Mr Keswick's campaign was not only damaging the Governor's authority but would do not good to Britain's long
term commercial interests.
B
4. Since then, however, Mr Keswick has been in touch with
the Department to complain that:
(a) the Hong Kong Government had not taken immediate
action to freeze Kuwaiti assets. This delay had contributed
to the relatively sharp fall in share prices in Hong Kong compared to other markets; and
(b) despite the sharp fall in Hong Kong share prices, to
which he implied the Hong Kong Government had contributed,
the Hong Kong Government had shown no flexibility over
extraterritoriality. Overseas registered companies like Jardines (which is registered in Bermuda) had suffered
because they had been prevented by the listing requirements of the Hong Kong Stock Exchange from buying back some of
their own shares on 6 August.
5. Mr Burns has been told by the Private Secretary that the
Secretary of State thinks there should be a prompt
Ministerial response to these complaints to try to discourage Mr Keswick from repeating them more widely.
BUSAHL/2
CONFIDENTIAL
No comments yet.
Private notes are available after approval.