CONFIDENTIAL
36.
CONFIDENTIAL
FM FCO
TO PRIORITY HONG KONG
TELNO 1724
OF 16173OZ AUGUST 89
FROM HKD
35
YOUR TELNO 27157
033564
MDLOAN 7975
HKCIOS
TOP COPY Q DIST?
EXCHANGE FUND ORDINANCE APPROVED INVESTMENTS
1. DEBENTURE INVESTMENT IS APPROVED IN PRINCIPLE BUT WE AWAIT SIGHT OF THE AGREEMENT (PARA 2 OF FUR REFERS) BEFORE GIVING FINAL
722 2034 21 APPROVAL
2. ON A POINT OF GENERAL PRINCIPLE GRATEFUL TO KNOW HOW YOU INTERPRET IN PARA 3(2) OF THE ORDINANCE' ... SECURITIES APPROVED BY THE SECRETARY OF STATE'. WE HAVE NOW ESTABLISHED THAT THE
PROPOSED DEBENTURE IS A SECURITY UNDER 3(2) BUT OUR UNDERSTANDING
OF THE ORDINANCE IS THAT THE SECURITY ITSELF NEEDS SPECIFIC APPROVAL.
3.
WE SHOULD BE GRATEFUL TO KNOW WHETHER THIS IS YOUR
UNDERSTANDING OR WHETHER THE SECRETARY OF STATE'S BLANKET APPROVAL HAS ALREADY BEEN GIVEN FOR CERTAIN GENERAL CATEGORIES OF SECURITIES.
4. IF EACH INVESTMENT DOES INDEED REQUIRE SPECIFIC APPROVAL THIS IS ANOTHER AREA OF THE ORDINANCE WHICH LIKE 3(3) (PARA 4 OF YOUR TELNO 1453 REFERS) COULD BE CONSIDERED FOR REVIEW, ESPECIALLY GIVEN THE IMPLICATIONS FOR POST-1997.
MAJOR
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HKD
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DISTRIBUTION
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LEGAL ADVISERS