TNAG-2423-FCO40-3525-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 100

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HKA 233/1

Mr Burns

Private Secretary

CONFIDENTIAL

Copied for Miss

fie

316

HMOCS

FROM: P F Ricketts, HKD

DATE: 13 May 1992

cc: PS/Mr Goodlad

Mr Bone

Mr Jay

Mr Sheinwald, ECD (I)

Mr Tebbit, ERD

CABINET: 14 MAY: HONG KONG ISSUES IN THE MARGINS

1. At a meeting with Mr Goodlad this morning it was agreed

that we should provide the Secretary of State with clutch

cards for a possible word in the margins of Cabinet with:

Matters are coming

Mr Heseltine on HSBC/Midland/Lloyds. to a decision point. Mr Heseltine will receive advice from

the Director-General of Fair Trading next week on whether to refer to Lloyds' bid to the Monopolies and Mergers

Commission and whether to seek an exit from Brussels to give

the HSBC/Midland bid similar treatment. Mr Goodlad has

written to Sir G Borrie, putting our case for HSBC. We

understand that the Chancellor is about to write to the

Prime Minister and colleagues, saying that he sees no reason to interfere with the Commission's study of the HSBC bid on

taxpayer grounds, and that he sees merit in referring Lloyds to the MMC. This is helpful. To add to the momentum, the Secretary of State might underline to Mr Heseltine the

possible damage in Hong Kong if HMG were now to try to hold

up the HSBC bid for MMC consideration;

BOPAFW/1

CONFIDENTIAL