CONFIDENTIAL
062776
4
MDHIAN
TRANSFER OF THE LIABILITIES OF BCCHK TO A NEW ENTITY AND THE GOVERNOR IN COUNCIL WILL NEED TO APPROVE THE TRANSFER OF THE BANKING LICENCE. THE ADMINISTRATION HAS INDICATED THAT IT IS PREPARED TO SUPPORT THE BILL AND TO RECOMMEND APPROVAL OF THE NEW LICENCE, SUBJECT TO BEING SATISFIED WITH THE DETAILS OF THE NEW STRUCTURE, BUT HAS STRESSED THAT THE PREROGATIVE LIES RESPECTIVELY WITH LEGCO AND GOVERNOR IN COUNCIL.
5. CLEARLY THIS IS A WELCOME DEVELOPMENT BUT THERE CAN BE NO CERTAINTY AS YET THAT A SUCCESSFUL SALE WILL BE CONCLUDED.
PERHAPS THE CHANCES OF SUCCESS ARE NOW SOMEWHAT BETTER THAN 50/50 BUT WE WOULD HESITATE TO PUT A FIGURE TO THEM. YOU WILL NOTE FROM THE PROVISIONAL LIQUIDATOR'S PRESS STATEMENT THAT HE
CONSIDERS THAT THE BCCHK AND ITS DEPOSIT TAKING SUBSIDIARY WILL HAVE TO BE PUT INTO LIQUIDATION IF THE PRESENT PROPOSAL FAILS TO BE FINALISED.
FORD
YYYY
ΜΑΙΝ
27
LIMITED
HKD
NEWS D
ADDITIONAL
1
HK GOV OFF LONDON
NNNN
DISTRIBUTION
28
PS/LORD CAITHNESS
SIR J COLES
MR BURNS
PAGE 2 CONFIDENTIAL