C
DRAFT POINTS TO MAKE
CONFIDENTIAL
INFORMAL ADVICE TO NCNA
dipo
Visc
7
1.
We understand from transactions notified to the
former Home Affairs Branch and to the Registrar General's
Department that Mr. Xu Jiatun has stood as guarantor
of a loan raised from the Kincheng Bank for the Tin Tin
Daily News.
2.
We have no complaint.
Mr. Xu Jiatun, like any
other person legally resident in Hong Kong, is free to
engage in business activities. We do however have a word
of friendly advice. For reasons which will be familiar
to Xinhua, Mr. Xu and his senior colleagues are treated
in practice as if they were official representatives of
the People's Republic. This rests on an informal under-
standing. There is, however, no legal basis whatsoever
for any immunity.
3.
Were the bank in question to invoke Mr. Xu's
guarantee, the Hong Kong Government would thus be power-
less to intervene. If these dealings or any other
business ventures in which Mr. Xu might have become involved,
were to result in a civil action, there could again be no
question of intervention by the Hong Kong Government to
prevent such action taking place.
4.
We make this point to avoid any potentially damaging
misunderstanding. Xinhua News Agency's representatives
have always taken great care to avoid any action which might
embarrass them and us. We want to keep it that way.
CONFIDENTIAL