CONFIDENTIAL
(j) The private sector possibility identified by Barings (ie covering the period 1992-2002 approximately) should be explored further. HKG would be asked to get a "best efforts" quote from the Hong Kong banking sector (ACTION: HKD).
(k) The paper should cover SPOS (ACTION: HKD/ODA)
Compensation Options:
4.
It was agreed that the four options in the HKD draft should be retained. Mr Woodfield repeated that, particularly if there were to be a sterling safeguard, the Treasury saw no need to improve our original proposal (though he accepted that we could hardly now offer anything less than it). Mr Cox said that the Foreign Secretary had explained why he believed we needed to do so. Mr Rayson suggested that there was no need to spend much time looking at the details of a possible compromise between our original proposal and the HMOCS proposal. Mr Cox disagreed: he argued that we must put forward a properly-costed option; if Ministers decided to improve our original proposal it would not be satisfactory for them to have to send officials away for further negotiation on "details".
Options without HMG funding:
5. It was agreed that the capitalisation option should be specifically mentioned.
Hong Kong Department 30 July 1992.
fin.opt.ADM
SLM
CONFIDENTIAL
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