7
20.
THIS understatement of the Carrian Group debt appears
to have been a deliberate act in accordance with a policy followed
by BMFL and at least certain members of the Boards of CHL and CIL.
The said BMFL documents make specific reference to discussions
which BMFL had "been pursuing with the Carrian Group to improve
its own security position outside the rescue shceme at present
being formulated by the financial adviser of the Carrian Group".
A copy of the relevant document is attached and marked "RF4".
Further, Geroge TAN, on the 15th January 1983, as Chairman of CHL
wrote to BMFL saying that:-
"It is for the protection of your bank that we have
not included your bank in a loan reduction program.
We thought we have a great more obligation to do so,
since our relationship is well established, long-term
and world-wide. In other words, if anything happen
in Carrian-Hong Kong, your exposure is still protected
by overseas assets which by that time, we have taken
out from the Hong Kong Companies of Carrian, which
will be "tightly controlled by committee" (as you
quoted in your letter).
We do not want to
put too much details or a time table for all these to
happen. The above description is a very confidential
strategy which should not be discussed or disclosed to
other parties. So please keep this confidential only
to your Board and if possible, destroy this letter
afterwards.
D
Da