TNAG-2125-FCO40-3032-Banking-situation-in-Hong-Kong-1990 — Page 64

CONFIDENTIAL

FM FCO

TO IMMEDIATE HONG KONG

TELNO 910

OF 03160OZ MAY 90

CONFIDENTIAL

нис

102

Y

RECI

- 9 MAY 1990

{.

24

062015

MDHOAN 8183

PERSONAL FØR GOVERNOR FROM MCLAREN

21.

FCO TELNO 879: JARDINE FLEMING BANKING LICENCE

1

·

ROSALIND MARSDEN WILL BE SEEKING YOUR ADVICE SEPARATELY ON

A REPLY TO A LETTER WHICH THE PRIME MINISTER HAS RECEIVED FROM HENRY KESWICK SEEKING HER HELP IN SECURING A FULL BANKING LICENCE FOR JARDINE FLEMING. AS YOU WILL SEE, THE LETTER IS QUITE SKILFULLY DRAFTED TO RAISE QUESTIONS IN THE PRIME MINISTER'S MIND.

2.

WE HAVE BEEN ASKED FOR A DRAFT REPLY QUOTE PREPARED IN CONSULTATION WITH THE TREASURY AND THE BANK OF ENGLAND, AS WELL AS THE GOVERNOR OF HONG KONG UNQUOTE. I DO NOT KNOW WHAT VIEW THE TREASURY OR BANK OF ENGLAND WILL TAKE: TO THE BEST OF MY KNOWLEDGE WE HAVE HAD NO PREVIOUS ENQUIRIES OR EXPRESSIONS OF INTEREST FROM THEM. BUT THE BANK OF ENGLAND MAY OF

COURSE HAVE BEEN IN TOUCH DIRECTLY WITH THEIR COUNTERPARTS IN

HONG KONG.

3. YOU MAY BE TEMPTED TO ADVISE THAT THE PRIME MINISTER SHOULD REPLY TO THE EFFECT THAT THIS IS A MATTER FOR THE HONG KONG GOVERNMENT. BUT WE SHALL NEED TO EXPLAIN THE BACKGROUND TO NO 10, AND SET OUT PERSUASIVELY THE REASONS WHY EXCO HAS TAKEN THE POSITION IT HAS .THE SAME EXPLANATION WILL MEET MR MAUDE'S REQUEST (MY TUR). WE SHALL IN ANY CASE NEED TO SUBMIT THE DRAFT REPLY THROUGH HIM.

HURD

YYYY

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CONFIDENTIAL