MANAGEMENT IN CONFIDENCE
Minister's undertaking that there will be some HK$ 25 bn
(£2bn) in the reserves when the Chinese take over. In view of the Treasury's point that capitalisation should be welcome to Hong Kong (and even the Chinese) in that it would relieve them of a burden, and the fact that Hong Kong have some HK$70 bn in their reserves at present, there is no reason to assume that (with careful management) it should not be possible to capitalise the pensions and still have enough in the reserves for 1997.
5.
There is a danger that at some point the ODA will try and pass the baby entirely to us, arguing that they have reached the end of the road and that the arguments are now wholly political. We must avoid that, and leave the ODA to lead on the issue and deal with Mrs Brown - who is already concerned about where any new money would come from and spoke unhelpfully at one point of a possible PES bid next year.
(Unters one had
Spent months examining the possibilities in the import negotiations)
They have
never led on the issue.
nh
J A Dew
RC7ADV
MANAGEMENT IN CONFIDENCE
No comments yet.
Private notes are available after approval.