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CONSIDERED WHEN THE LONDON LICENCE WAS GIVEN.
5. AS BACKGROUND, IT IS WORTH NOTING THAT WE ALREADY HAVE TAIWANESE INTERESTS IN THE BANKING CAND DTC) SECTORS. THE SHANGHAI COMMERCIAL BANK, FOR INSTANCE, IS OWNED BY TAIWANESE RESIDENTS.
6. ANOTHER TAIWANESE BANK, THE OVERSEAS CHINESE COMMERCIAL BANKING CORPORATION (OCCBC), HAS INDICATED AN INTEREST IN LEADING A CONSORTIUM TO ACQUIRE THE HK GOVERNMENT-OWNED HANG LUNG BANK: IT IS UNLIKELY TO HAVE DONE SO WITHOUT INFORMALLY CLEARING ITS POSITION WITH THE TAIWANESE AUTHORITIES (WHICH IT WILL HAVE FORMALLY TO DO IF ITS BID IS IN DUE COURSE SUCCESSFYL - THE HK GOVERNMENT IS CURRENTLY DRAWING UP A SHORT LIST OF THOSE WHICH HAVE INDICATED INTEREST IN THE BANK), OCCBC IS ONLY 18 PER CENT GOVERNMENT OWNED, WITH ABOUT US DOLLARS 100 MILLION IN CAPITAL (BECAUSE OF ITS SMALL GOVERNMENT INVOLVEMENT, TAIWANESE OFFICIAL PERMISSION MAY BE RELATIVELY EASY TO GET). THE PURCHASE WOULD REQUIRE FORMAL CONSENT BY THE COMMISSIONER OF BANKING. THIS WOULD BE LESS HIGH PROFILE THAN A BANK LICENCE GRANTED BY EXCO TO A TAIWANESE INCORPORATED ENTITY.
7. UNLESS YOU HAVE ANY OBJECTION, I PROPOSE TO LET IT BE KNOWN THROUGH THE INTERMEDIARY THAT WE WOULD BE PREPARED TO CONSIDER AN APPLICATION BY FIRST COMMERCIAL. APPROVAL WOULD OF COURSE BE CONDITIONAL ON IT SATISFYING THE USUAL CRITERIA. WE WOULD ALSO HAVE TO BE SURE THAT THE COMMISSIONER OF BANKING COULD OBTAIN THE NECESSARY ASSURANCE ON SUPERVISION BY INDIRECT MEANS WITHOUT DIRECT
CONTACT WITH THE TAIWAN AUTHORITIES.
8. WE DO NOT OF COURSE KNOW HOW SERIOUS FIRST COMMERICAL BANK'S
INTEREST IS. THIS MAY SIMPLY BE A PROBE. IF AN APPLICATION DID COME IN, WE WOULD SUBMIT IT THROUGH THE NORMAL PROCEDURE. WE WOULD INFORM THE CHINESE IN ADVANCE IF WE DECIDE TO GRANT A LICENCE.
9. GRATEFUL FOR ANY COMMENTS FROM YOU AND PEKING.
WILSON
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