TNAG-2471-FCO40-3595-Confidential-talks-between-the-UK-and-China-regarding-financ-1992 — Page 98

}

SECRET

FM PEKING

TO IMMEDIATE FCO

TELNO 159

OF 070339Z FEBRUARY 92

AND TO IMMEDIATE HONG KONG

SECRET

INFO PRIORITY UKREP JLG HONG KONG

Pa

Biall

this call

072777

MDHIAN 2143

TOP COPY Q DIST?

PERSONAL FOR RICKETTS, HKD

HONG KONG PERSONAL FOR GOVERNOR UKREP JLG PERSONAL FOR GALSWORTHY

28

MY TELNO 150 AND FCO TELNO 149 TO HONG KONG: CONFIDENTIAL FINANCIAL DIALOGUE: NEXT MEETING WITH THE CHINESE

1. TURS SEEM TO HAVE CROSSED. SUBJECT TO YOUR AND HONG KONG'S VIEWS WE WILL TELL THE CHINESE ON 10 FEBRUARY THAT WE PROPOSE TO ADD ONE MORE ITEM TO THE AGENDA ENTITLED 'DISCLOSURE OF INFORMATION ON THE EXCHANGE FUND'.

2.

ON AGENDA ITEM (C), THE PROPOSED NEW LIQUIDITY ADJUSTMENT FACILITY (LAF): IF THE CHINESE COME BACK TO US BEFORE THE TALKS AND ASK FOR DETAILS WE PROPOSE TO REPLY SIMPLY THAT WE INTEND TO EXPLAIN OUR THINKING ON THE INTRODUCTION OF A LAF.

MCLAREN

YYYY

ΜΑΙΝ

23

DISTRIBUTION

31

HK CONFIDENTIAL FINANCIAL

(DIALOGUE)

LIMITED

HD/HKD

HD/ERD

HD/FED

HD/ECONOMIC ADVISERS

PS

PS/LORD CAITHNESS

PS/PUS

SIR J COLES

MR BURNS

HD/PUSD

PAGE 1 SECRET