CONFIDENTIAL

(19)

154464

MDHOAN 6395

CONFIDENTIAL

FM FCO

TO IMMEDIATE BTC HONG KONG

TELNO 33

OF 24183OZ JANUARY 91

INFO IMMEDIATE HONG KONG

HKD 340/5

RECEIVE

D: Sk

INDEX

2 JAN 1991

PA

TOP COPY Q DIST?

PERSONAL FOR HEAP FROM PAUL, HKD

HONG KONG PERSONAL FOR GOVERNOR

YOUR TELNO 23: BRITISH UNDERTAKINGS

1.

WE HAVE SUBMITTED THE FULL LIST RECOMMENDING MINISTERIAL APPROVAL OF ALL THE LISTED COMPANIES. DTI ARE SUBMITTING IN PARALLEL. WE SHALL LET YOU KNOW THE OUTCOME AS SOON AS

POSSIBLE.

2.

WE AND OUR LEGAL ADVISERS HAVE HOWEVER SOME SUGGESTIONS FOR FINE TUNING THE LISTS BEFORE THEY ARE SUBMITTED TO THE GOVERNOR:

A) AS YOU ARE AWARE (DAVID SMITH'S FAX OF 24 JANUARY) WE CONSIDER THAT ALL THOSE INSTITUTIONS IN LIST G WILL FIT INTO EXISTING CATEGORIES. ALL THOSE LISTED IN LAST PARA OF SMITH'S FAX CAN BE CLASSIFIED AS EITHER CROWN SERVICE

(SECTION 16(2)(6)) OR DESIGNATED SERVICE (16(2)(C)).

SUCH THEY DO NOT NEED TO APPEAR ON ANY LIST OF BRITISH UNDERTAKINGS (SECTION 16(2)(A)).

B) THE CRITERION FOR LISTS C AND D (II) SHOULD BE EXPANDED TO READ ''BRITISH CITIZENS AND COMPANIES (OR OTHER BODIES CORPORATE) INCORPORATED UNDER THE LAWS OF THE UK''. THIS IS IN ORDER TO REMAIN CONSISTENT WITH THE WAY IN WHICH THE COMMITTEE HAVE DRAWN UP THOSE LISTS.

C) THE POSITION OF SUBSIDIARY COMPANIES IN ONE OF THE LARGER GROUPS SHOULD BE FORMALISED BY THE ADDITION OF A FOOTNOTE TO THE LIST AS FOLLOWS:

''WHERE A HOLDING COMPANY QUALIFIES UNDER ONE OF THE SIX CATEGORIES, AND THE COMMITTEE IS SATISFIED THAT THE HOLDING COMPANY HAS EFFECTIVE CONTROL OF A GROUP OF COMPANIES, SUCH COMPANIES SHOULD ALSO BE DEFINED AS

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