MAY.31 '88 18:01 LINKLATERS & PAINES HK 5-810E133
RESIDENT PARTNERS
LAMERA WATKINS
ALAN W RANK
BAINSLEY R. 1. NICHOLSON DAVID BARNES
SOLICITORS
SIMON W ATIYAH RAYMOND M. COMEN
RICHARD KENDALL IMENES H LOW VERÓNICA A OʻSHFA BRIDGET & WILLIAMSON
SHARON A. BEESLEY
NICHOLAS W. EASTWELL
KELVIN W Y LO
AILEEN E. MUDONALD SIMON J. REID KAY
W. WILLIAM W. WOODS
Foreign & Commonwealth Office,
King Charlas Street,
London SW1A 2AH,
England,
For the attention of Paul Fifoor. Esq.
Dear Sir,
P.002
20
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BRUSSELS
YOUR REF
NEW YORK
PARIS
OUR REF
DAB
31st May, 1988
HK$102./3
TOKYO
Rainier International Bank
(Transfer of Hong Kong Undertaking) Bill 1988
We thank you for the comments on the above Bill which you passed on to our London Office at the end of last week. We have considered these and set out our response below. We imagine that you have also discussed these with the Office of the Banking Commissioner or the Law Drafting Division in Hong Kong direct.
1.
Territorality
Whilst neither Rainier International Bank nor The Daiwa Bank, Limited, the proposed purchaser are Hong Kong companies, care has been taken in the araiting or the bill só as to limit les airBCC, inus the "Hong Kong undertaking" is defined as the business of the Hong Kong Branches of Rainier and property and liabilities pertaining there to and it is the Hong Kong undertaking to which Clause 4 applies; similarly, Clause 6 is specifically stated to apply "with respect to the Hong Kong undertaking". Whilst Rainier International Bank does have a limited amount of business outside Hong Kong, that business is not being sold to The Daiwa Bank, Limited, and the draft Bill is expressly limited to relationships with the Hong Kong Branches. It is difficult in drafting the Bill to go any further in limiting its territorial effect as one fears that by so doing, one might for example exclude, or appear to exclude, the relationship with a customer of one of the Hong Kong Branches who is resident outside Hong Kong. The transfer of the account of such a customer must be covered by the Bill.