-15-

of 1983 and would be in respect of the BMFL/Carrian situation.

(8) "CHA 1" 4978, "copy memo J. Marshall to George Tan" 4th May 1983.

-

(9) "CHA I" serial No. 4994, "Telex GT to LEO re: revised rescue scheme"

dated 5th May 1983.

}

40.

The

next

loan applications and are missing documents group of

loan

made

the to

Board of

BBMB. The applications

themselves were

such

advice as

of solicitors,

proposals

accompanied by supporting documentation,

assessments of value and valuation reports themselves: sometimes these were

merely referred to, enabling the board members to call for their production at

will. There are many such loan application references, see e.g. "CHA 1", 548,

751 711,

etc.

549, 618, 621, 623, 627-631, 634.

Government, the total advances, the subject of

"

According to

the HK

were made SO

charges,

irregularly as to evidence dishonesty on my part. It is further alleged that

the advances were made contrary not only to all normal and accepted banking

rules and practice but also to the established rules within BMFL and BBMB.

During the committal proceedings, the HK Government adduced evidence from a

Mr. George Cathles, a "banking expert" on the issue of banking practice under

the manual issued by BBMB. Such practice was contrasted with BMFL's lending

practice to Carrian, which he severely criticises.

41. It is put against me on this issue, in part on the basis of evidence

given by BBMB, that there were deviations from the normal lending policy of

BBMB in respect of Carrian and that such deviations of which I had knowledge

could justify an inference of dishonesty on my part. In respect of a number of

BBMB's loans, approved by the Board, the documents demonstrate that the loans

15

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