TNAG-2475-FCO40-3605-Hong-Kong-exchange-fund-report-and-accounts-for-1991-1992 — Page 89

CONFIDENTIAL

B

to discuss generally the Confidential Financial Dialogue and what a useful forum this is proving to be. Should it be widened to include subjects with some political elements

(airport related matters? Land Fund worries?) or is this dangerous?

-

to reassure Mr Yam that we have not lost sight

of Hong Kong's request that the Exchange Fund should be

allowed to broaden the scope of its investments to include

US stocks and shares (We are waiting to see which Minister we have before decided whether we need to submit on this or

not).

to see whether Mr Yam has any useful thoughts on improved protection of pensions for all Hong Kong civil servants. Discussion could cover: how to meet exchange rate worries; the practicability of building up of a dedicated pension fund; and the Margolis report. (Note: Mr Yam may not be aware of our exchanges on the HMOCS dimension to the Margolis report).

3. Mr Burns should remember that Mr Yam is not/not aware of operation RADLETT.

Whatistare.

M V Stone

TICAFI/2

CONFIDENTIAL