LIQUIDATION.

CONFIDENTIAL

052 5

MDHIAN

6. C OF B HAS WRITTEN TO BCCHK ON 8 JULY GIVING THEM 7 DAYS' NOTICE AS REQUIRED UNDER SECTION 52(2) OF THE BANKING CORPORATION ORDINANCE THAT HE WOULD REPORT THE CIRCUMSTANCES TO THE GOVERNOR IN COUNCIL WHO HAS POWER UNDER SECTION 53(1) TO DIRECT THE FINANCIAL SECRETARY TO PRESENT A PETITION TO THE HIGH COURT FOR WINDING-UP OF THE BANK. THIS MATTER WILL BE CONSIDERED BY EXCO ON

16 JULY.

-

7 IT HAS BEEN DECIDED THAT, AS THE EXCHANGE RATE IS UNLIKELY TO BE UNACCEPTABLY AFFECTED, THE FINANCIAL SECRETARY WOULD NOT MAKE USE OF THE EXCHANGE FUND TO RESCUE THE BANK.

7. THE FINANCIAL SECRETARY WILL MAKE A STATEMENT IN LEGCO TOMORROW (10 JULY) EXPLAINING THE BACKGROUND LEADING TO THE SUSPENSION OF BCCHK'S BUSINESS AND THE WAY FORWARD. A COPY OF HIS STATEMENT WILL BE FAXED TO YOU WHEN AVAILABLE. WE WILL KEEP YOU

POSTED OF FURTHER DEVELOPMENTS. YOU MAY WISH TO CIRCULATE THIS TELEGRAM TO INTERESTED PARTIES AS YOU SEE FIT.

WILSON

YYYY

ΜΑΙΝ

108

DISTRIBUTION

113

BCCI (BANK OF CREDIT &)

(COMMERCE INTERNATIONAL)

MED

PUSD

ERD

HKD

NAD

NENAD

NEWS D SED

WED WIAD

PS

PS/MR HOGG

PS/MR GAREL-JONES

PS/PUS

MR FAIRWEATHER

MR BAYNE

MR GORE-BOOTH

ADDITIONAL

เก

5

PAGE

2

CONFIDENTIAL

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