TNAG-2754-FCO40-3971-Business-matters-in-Hong-Kong-acquisition-of-Midland-Bank-by-1993 — Page 15

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

ชิเ

UNCLASSIFIED

OF

CHANCELLOR

THE EXCHEQUER

That was not, however,

lend more money to, various countries.

something that the HSBC had much to do with.

HSBC's move to London

3. The Chancellor asked how the relocation of HSBC's head office

to London had gone. Sir William Purvis said that the Group was very pleased with the progress that had been made.

Brian Pearce

some of the

had been leading Midland very well. Midland had been in difficulty for a number of years. A 5-year programme to introduce new technology which would enable it to link to the technology used by the rest of the Group was getting underway. Investment in property refurbishment had been accelerated:

branches were in a disgraceful state. Refurbishment would be

complete in three years. The Chancellor asked whether that would

involve reductions in the number of branches. Sir William Purvis

said that there would not be a large scale reduction in

most of the required closures had already taken place, but there would be some tidying up at the edges.

branches:

Relations with China

4. Sir William Purvis said that the Head Office's move to London

had created some political problems for HSBC in South East Asia and in China. Not everyone understood the commercial reasons why

HSBC had decided to move a lot of its assets out of Hong Kong.

was being seen in part as a reaction to the present stand-off between Hong Kong and China.

5. HSBC's

relations

It

with Beijing had suffered from Sir William Purvis's membership of the Hong Kong Executive Council over the last few years, as well as the Bank's move to London. For example, Samuel Montagu had got approval to lead a Dragon Bond issue until the Hong Kong and Macao Affairs Office had stepped in.

UNCLASSIFIED

2 -

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