JOHNSON, STOKES & MASTER

CONTINUED

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21st August, 1980

At the beginning of 1980, he was approached by two friends of his, Angela Ceasar and Jo Lipman who wished to go into business together and manufacture certain PVC products in Hong Kong but who, in order to get the business off the ground, needed someone in Hong Kong, who they could trust and who they felt knew Hong Kong well. Our client was, in their opinion, the ideal choice in view of his close substantial connection with Hong Kong and also, in view of the fact that he has a working knowledge of Cantonese.

A period of almost 7 years had elapsed since his father's murder in Hong Kong and whilst the memory of the tragedy would always still be with Mr. Baron, he considered that he no longer had to live with it on a day-to-day basis and it was a realistic prospect for him to return to Hong Kong to assist his friends in setting up their business and upon the setting up of the business, to take employment with them here and run it for them. He therefore accepted his friend's offer and returned to Hong Kong in February this year and, upon instructions, this firm incorporated a company called Wainfleet Enterprises Limited, the two shareholders of which are Angela Ceasar and Jo Lipman.

Contact has been made with these two persons and it is understood they are writing a letter setting out why they consider our client is the most suitable person to run their business. Unfortunately, this letter is not available at the time of writing, although as soon as it is, it will be sent to you. It is because we understood this letter was on its way to us from the U.S.A. that we delayed appealing to you last week but in view of the 14 day deadline, we have had to appeal to you without the benefit of this letter.

We are however able to say that the shareholders have appointed our client as managing director of the Company and have indicated that should Mr. Baron be unable to remain in Hong Kong, in these circumstances this business will not get off the ground and the prospects, which they see as considerable, will be left unfulfilled. Our client is thus an integral part of the shareholders' plans.

The shareholders themselves have not had any previous experience in dealing with business in Hong Kong but we are informed that they are anxious to make use of the efficient Hong Kong manufacturing industry to produce PVC moving picture cards and badges for export.

We understand that Mr. Baron has been a long standing friend of both shareholders and thus not only can he be trusted but also he has the type of local Hong Kong knowledge and connections which, together with a knowledge of the type of products which the shareholders wish to manufacture, makes him the ideal choice for them.

We are further informed that the shareholders are both too heavily involved with their commitments in Hawaii to be able to devote the necessary time, attention and energy that is required to set up and run the company in Hong Kong.

In our opinion, it is self evident that the type of business is such that it has to be run and looked after in Hong Kong by someone who is familiar with the business operations here and yet who knows the American market.

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