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$20461
MDLOA. 4675
9.
WE ALSO WONDER WHETHER WE COULD USE SOME MOVE IN THIS AREA TO HEAD OFF ANY CHINESE IDEAS THAT YOU SHOULD ''SET ASIDE'' MORE FISCAL RESERVES, EG IN ORDER TO COVER CONTINGENT LIABILITIES, AND TO REDUCE LOCAL POLITICAL ARGUMENTS THAT THE RESERVES CUSHION IS TOO GENEROUS.
10.
ON PARA 3 OF YOUR TUR WE WERE A LITTLE SURPRISED, IN THE LIGHT OF CONTACT WITH BARINGS HERE, THAT THE ADMINISTRATION HAVE BEEN UNABLE TO FIND ANY FINANCIAL INSTITUTION WILLING TO MAKE LOANS NOW IN EXCHANGE FOR PENSION RECEIVABLES OVER A PERIOD OF 10 YEARS, OR ANY WILLING TO OFFER AN EXCHANGE-RATE HEDGING MECHANISM TO CIVIL SERVANTS ON GROUP TERMS. IT WOULD BE HELPFUL IF YOU COULD LET US HAVE COPIES OF ANY CORRESPONDENCE WITH LOCAL BANKS OR INSURANCE COMPANIES SETTING OUT THEIR OBJECTIONS. WE UNDERSTAND WHY YOU SEE DIFFICULTIES ABOUT ANY GOVERNMENT PUMP PRIMING OR SUBVENTION OF ANY SUCH ARRANGEMENTS (PARA 5 OF YOUR TUR).
11.
IT IS NOT EASY TO DISCUSS ALL THE POSSIBILITIES AND ALL THE DIFFICULTIES BY TELEGRAM. COX (HKD) AND FISH (ODA) WOULD BE VERY WILLING TO DISCUSS THESE MATTERS FURTHER IN THE MARGINS OF THEIR CONSULTATIONS WITH THE HMOCS ASSOCIATION COMMITTEE NEXT WEEK: ONE POSSIBILITY MIGHT BE THE MORNING OF 8 MAY.
HURD
YYYY
MAIN
40
DISTRIBUTION
40
.HER MAJESTY'S OVERSEAS .CIVIL SERVICE RESTRICTED HKD
LEGAL ADVISERS//MISS BROOKS
FED
NEWS D
RAD//MR WYE
OVERSEA PENSIONS/ODA//MR FISH
PS
PS/MR GOODLAD
PS/PUS
SIR J COLES
MR BURNS
MR KERBY
RMD
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