Mr Morris
HKD
rris
WH 312
CONFIDENTIAL
FROM:
PAUL FIFOOT
DATE: 15 APRIL 1988
MKC 105
105/1
EXCHANGE FUND ORDINANCE:
PROPOSED INVESTMENT
77
1.
Hong Kong telno 1378 does not deal with my question, and to be fair our telno 880 did not really address the point.
2.
70
I attach a copy of my minute to you of 5 April in which I pointed out that it was necessary to establish whether the proposed investment was an investment in "securities". Securities are not defined in the Exchange Fund Ordinance, as it appears in the revised addition for 1984, nor is there a general definition in the Interpretation Ordinance. One is therefore thrown back on more general aids to construction. For my part I would need considerable pursuasion that an unsecured loan, ie one that was not secured on the assets or undertaking of the company in the way a debenture is secured, constitutes a security. But I would be interested to learn Hong Kong's views.
of
Paul Fifoot
Legal Advisers K 199
15 April 1988
CONFIDENTIAL