CONFIDENTIAL

say that cover is currently available for further

business in Hong Kong subject to underwriting, budget and exposure constraints. Cover for major projects like the

Airport and Black Point may however have to be considered

individually because of their size; and

say that the limit of ECGD cover for business in

Hong Kong has recently increased (although figures are not customarily provided) and that ECGD looks forward to close involvement in future project activity in Hong

Kong.

Jardine Matheson

Mr Henry Keswick has been pressing for the Jardine

Matheson Group of companies to be given a "trading-only"

listing in Hong Kong and exemption from the Hong Kong

Takeover Code. If this is not granted they have said they will delist. Their publicly voiced concern is over

how the Takeover Code could be abused post-1997 (memories of Shanghai in the 1950s). Less charitable opinion

suggests that their motives are more commercial. Some

feel they have already decided to delist and are simply looking for a plausible excuse.

Jardines came close to delisting in March this year but an agreement with the Governor appeared to give all parties concerned until the end of the year to devise suitable arrangements. Recently however Mr Keswick has made it clear that he feels that matters are going badly:

unless Hong Kong Government meets their demands by

September, they will announce a decision to delist.

CONFIDENTIAL

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