UNCLASSIFIED
FM FCO
TO PRIORITY HONG KONG
TELNO 1374
OF 26161OZ MAY 88
UNCLASSIFIED
76
Q DIST
нис 10
102/3
056134 MDLOAN 0216
RAINIER INTERNATIONAL BANK (TRANSFER OF HONG KONG UNDERTAKING)
BILL 1988
1.
LINKLATERS AND PAINES HAVE SENT FIFOOT A COPY OF THIS BILL.
WE HAVE NOT (NOT) YET RECEIVED THE COMMENTS OF THE COMMISSIONER
OF BANKING CALLCOCK'S LETTER OF 19 MAY TO FOOTMAN REFERS).
OUR
WOLD BE OF
A)
2.
3.
B)
INITIAL EXAMINATION OF THE BILL RAISES TWO ISSUES WHICH
CONCERN TO THE SECRETARY OF STATE:
-
THE BILL APPEARS TO PURPORT TO HAVE EXTRATERRITORIAL
EFFECT COMPARE CLAUSE 4 WITH CLAUSE 4 OF THE
DEUTSCHE BANK BILL. THE QUALIFICATIONS IN THE LATTER
ARE NOT (NOT) TO BE FOUND IN THE FORMER OR IN THE DEFINITION OF QUOTE HONG KONG UNDERTAKING UNQUOTE OR CLAUSE 2(2) OF THE CURRENT BILL. THE SENDER IS
PRESUMABLY A US NATIONAL AND NOT (NOT) THE CREATURE OF
HONG KONG LAW:
VENDOR
ARE THEIR SUFFICIENT SAFEGUARDS TO ENABLE A CUSTOMER
TO HAVE THE ISSUE WHETHER OR NOT HIS ACCOUNT IS PART
OF THE HONG KONG BUSINESS DETERMINED QUICKLY,
CONCLUSIVELY AND WITHOUT COST TO HIM. CLAUSE 1U (2) (C)
WOULD SEEM TO DEAL IN PART WITH THIS QUESTION: BUT IS
IT SUFFICIENT?
WHAT IS AN EDGE ACT CORPORATION AND WHAT IS ITS RELEVANCE
TO THE BILL?
4.
·
WE HAVE INFORMED LINKLATERS THAT WE ARE RAISING THESE
POINTS WITH YOU. OUR CONTACT ALSO WAS UNFAMILIAR WITH THE EDGE
ACT.
5.
HOWE
GRATEFUL FOR YOUR COMMENTS.
YYYY
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