closing down the BCCI. There was an inability to distinguish between the statutory responsibilities of the Bank of England and the political sentiment of the British Government. The authorities in Abu Dhabi were committed to negotiations on
restructuring the bank. Mr Vaz said that it would be helpful if HMG could reassure Abu Dhabi that bilateral relations
remained firm and that HMG supported the restructuring efforts.
He asked the Secretary of State to make a clear statement that he supported the negotiations on restructuring. Mr Ashdown and
Mr Vaz
Mr Kinnock had already done so. Time was short if the negotiations were to succeed before the 2 December deadline set
by the judge. Mr Vaz urged the Secretary of State to send a
Minister to Abu Dhabi soon to show HMG's commitment to
maintaining good relations and cooperation. Mr Vaz referred to
the news that senior BCCI officials had recently been detained
in Abu Dhabi saying that this was a potentially helpful
development. He had always believed that those who were responsible for the fraud should be brought to justice.
said he wished to see the Bank of England play a more positive
role. He was aware that this was not the Secretary of State's
responsibility but there were foreign policy implications. Could he pass on a message to the Chancellor? Mr Vaz said he was grateful for the letter Mrs Chalker had written about his visit to Hong Kong. Could the Foreign Secretary give an
assurance that HMG supported attempts to restructure the BCCI
in Hong Kong? Finally, Mr Vaz said that his delegation was
planning a visit to Gibraltar, possibly this coming weekend.
Gibraltarian depositors and staff of BCCI were seeking similar
compensation to that available in the UK. Could HMG help?
3. The Secretary of State said that he shared Mr Vaz's belief
that it was essential to root out the fraudsters and bring them
to justice. He said he had checked earlier that morning with
the Serious Fraud Office (SFO) whether British authorities had
been involved in the detentions in Abu Dhabi over the weekend.
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