CONFIDENTIAL
FM FCO
TO ROUTINE BTC HONG KONG
TELNO 164
OF 13140OZ AUGUST 91
CONFIDENTIAL
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177567 MDLOAN 0508
HKD 340/5
RECELER
TOP CO DQ DIST?
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YOUR TELNO 138: PLACE OF SERVICE WITH BRITISH UNDERTAKINGS
WE ARE SORRY FOR THE DELAY IN SENDING A SUBSTANTIVE REPLY TO SMITH-LAITTAN'S LETTER OF 17 MAY
91
1.
2.
OUR LEGAL ADVISERS HAVE ADVISED THAT THERE IS NO EXPLICIT REQUIREMENT IN ARTICLES 7 OR 16 THAT THE UNDERTAKING MUST BE ESTABLISHED IN HONG KONG OR EVEN HAVE A PRESENCE THERE, NOR DO THEY THINK ANY SUCH REQUIREMENT CAN VALIDLY BE READ INTO THESE ARTICLES. ALTHOUGH THE GOVERNOR HAS A LIMITED DISCRETION IN DECIDING WHICH COMPANIES ARE BRITISH UNDERTAKINGS, THE CRITERION IS A CLOSE CONNECTION WITH THE UK.
3.
ARTICLE 7 WAS DELIBERATELY DRAFTED IN THIS WAY TO AVOID
DIFFICULTIES POSED BY AN OBJECTIVE CRITERION BASED ON REGISTRATION EITHER IN HONG KONG OR UK. THE AIM WAS TO GIVE MAXIMUM FLEXIBILITY TO INCLUDE SERVICE WITH UK CONNECTED
COMPANIES.
WE DO NOT IMAGINE THAT THERE WILL BE MANY CASES WHERE THIS
ARISES AS AN APPLICANT WORKING FOR A BRITISH COMPANY OUTSIDE
HONG KONG MAY HAVE DIFFICULTY IN SATISFYING THE REQUIREMENTS OF
ARTICLES 3 OR 27. HOWEVER, IF HE OTHERWISE FULFILLS THE SCHEME'S REQUIREMENTS WE ARE ADVISED THAT HE SHOULD BE AWARDED BRITISH LINKS POINTS IRRESPECTIVE OF WHETHER THE BRITISH FIRM
CONCERNED HAS A PRESENCE IN HONG KONG OR NOT.
CHALKER
YYYY
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