TNAG-2423-FCO40-3525-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 95

CONFIDENTIAL

Sconteny d State

To be pot on

HMCC

314

Policy

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Mr Burns

Private Secretary

FROM: P F Ricketts, HKD

DATE: 13 May 1992

1815

cc: PS/Mr Goodlad

Mr Bone

Mr Jay

Mr Sheinwald, ECD(I)

Mr Tebbit, ERD

DVRicketts

fewery of thate did nor

2 withi ever have an opportunt to raise within in margin of Cabinet.

CABINET: 14 MAY: HONG KONG ISSUES IN THE MARGINS

1.

ла

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;

14/

BOPAFW/1

CONFIDENTIAL