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FM HONG KONG
TO DESKBY 02070OZ FCO
TELNO 11
OF 02050OZ JANUARY 88
INFO DESKBY 04010OZ PEKING
HKC 100
RECEIVED IN REGISTRY
- 6 JAN 1988
DESK OFFICER
INDEX
PA
REGISTRY
Action Taken
RESIDENT CLERK PLEASE PASS TO PAUL, HKD AT 02080OZ
-NIT.
111620
MDHIAN 2127
TO
TOP COPY O DIST ?
YOUR TELNO 3398: HONG KONG STOCK EXCHANGE: INVESTIGATION BY ICAC
1. THE OPERATION PROCEEDED THIS MORNING ACCORDING TO PLAN. IN THE EVENT, THE ICAC ONLY ARRESTED 3 PEOPLE: MR RONALD LI, MR JEFFREY SUN AND MR DONALD TSANG. THE TWO SECRETARIES WERE ASKED TO COME IN FOR QUESTIONING BUT WERE NOT ARRESTED AS THEY
ARE COOPERATING WITH THE ICAC.
HE
2. MIFT CONTAINS THE TEXT OF THE TWO PRESS RELEASES ISSUED BY
ICAC THIS MORNING. MY SECOND IFT CONTAINS THE RESOLUTION PASSED BY THE COMMITTEE OF THE STOCK EXCHANGE. MY THIRD IFT CONTAINS THE TEXT OF A PRESS STATEMENT THAT HAS BEEN MADE BY THE FS. DID NOT ANSWER ANY QUESTIONS. WE ARE SEPARATELY INFORMING THE HEADS OF THE HONG KONG GOVERNMENT OFFICES OVERSEAS AND MR IAN HAY DAVISON OF DEVELOPMENTS.
3. PA HAS ALSO BRIEFED THE NCNA. HE TOLD THEM THAT AN ICAC INVESTIGATION INTO THE STOCK EXCHANGE IS IN PROGRESS AND THAT MESSRS. LI, SUN AND TSANG HAVE BEEN ARRESTED FOR QUESTIONING. THE HONG KONG GOVERNMENT SAW THE NEED TO ENSURE THAT NORMAL BUSINESS WAS MAINTAINED IN THE STOCK EXCHANGE AND THEREFORE SUGGESTED TO THE COMMITTEE THAT A MANAGEMENT COMMITTEE BE SET UP TO RUN THE EXCHANGE WHILE ICAC INVESTIGATIONS CONTINUE. HE WILL ADD THAT WE WOULD HAVE TAKEN PARALLEL ACTION TO INFORM CHINESE OFFICIALS IN PEKING IF THE MFA HAD NOT BEEN CLOSED TODAY. IN ANSWER TO QUESTIONS, HE WILL SAY THAT THOSE MEMBERS OF THE COMMITTEE WHO ARE NOT MEMBERS OF THE MANAGEMENT COMMITTEE MAY BE QUESTIONED BY ICAC AND THAT THE INVESTIGATION HAS NOTHING TO DO WITH THE STOCK MARKET FALL IN OCTOBER.
WILSON
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