CDEW: LEB0220
NOTE FOR RECORD
BY C D ELSTON
Hiß 102/3 Mi Shoe
12. 8.
ал
The stability of the exchange rate is good news, but reliance the good sense ʼn the exchange market professionals is pertour
Copies to
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BCC (HK)
GPS
DGPS
Mr Crockett Mr Quinn
Mr Barnes
Mr Page
Mr Bartlett
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白
13/1
Mr D M Sutherland
Mr Anderson Mr Compton Section 7
HONG KONG
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1 I spoke to Joseph Yam this morning to find out about the latest
position. The run on Standard Chartered seems to have subsided and
the bulk of the banknotes that were held ready to meet withdrawals
on Saturday morning and today were not needed. However, rumours
are still circulating about banks in difficulties: the latest
subject is the Bangkok Bank, though it has not so far experienced a
run. The situation is still clearly nervous.
2 This is highlighted, too, by the angry response by BCCI depositors to David Nendick's reported accusation that they were the deliberate source of the groundless rumours. They demanded an
apology from him, held a private meeting with him and came out
saying the apology had been given. However, Nendick denied this, which only served to exacerbate the situation and a further meeting has been demanded, which Nendick is declining.
3
Meanwhile four Hong Kong financial notables
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Jacobs, Nendick,
Carse and Yam have been burnt in effigy. Yam is distinctly
concerned and saddened
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that the reputation for efficient
monetary management and hence the maintenance of confidence which
has been carefully worked for and earned over the past five