TNAG-2471-FCO40-3595-Confidential-talks-between-the-UK-and-China-regarding-financ-1992 — Page 113

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SECRET

FROM: N J Cox

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10111

-4 FFR 1032

Hong Kong Department

DATE: 31 January 1992×

cc: Sir J Coles

Copy Signal by

Mr Broadbent, (NC Economic Advisers

Mr Davies, FED

Miss Brooks,

Legal Advisers

Para 7 lat sentence

HONG KONG: CONFIDENTIAL FINANCIAL DIALOGUE

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Problems

1. Should Hong Kong end its secrecy about the size of the Exchange Fund? Should we comment on any other aspects of the proposed agenda for the next meeting in the Hong Kong/Peking confidential financial dialogue?

Recommendations

2.

I recommend that:

(a) subject to the outcome of the present Bank of England review of the Exchange Fund's management, we should agree in principle to Hong Kong's publishing annually the balance of the Exchange Fund, six months in arrears;

(b) we should agree to Hong Kong discussing this idea

with the Chinese at the forthcoming meeting;

(c) we should suggest to Hong Kong that they might consider taking this opportunity to open discussion on the

NC2ABD/1

SECRET

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