CONFIDENTIAL
FM FCO
TO IMMEDIATE HONG KONG
TELNO 23
OF 07150OZ JANUARY 92
INFO IMMEDIATE HKGO LONDON
CONFIDENTIAL
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MDHOAN 7512
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PERSONAL FOR YAXLEY, HKGO LONDON
PERSONAL FOR GOVERNOR FROM RICKETTS, HKD
Q
YOUR TELNO 38: JARDINES
1. THANK YOU FOR THIS UPDATE. JARDINES HAVE NOT BEEN IN TOUCH WITH US SINCE MID-DECEMBER - MY TELNOS 2145 AND 2170. BUT AS SIR C POWELL MADE CLEAR TO ME IN DECEMBER, THEY VIEW IT AS VERY IMPORTANT THAT THE SFC SHOULD GET ON QUICKLY WITH THEIR PAPER ON CHANGES TO THE TAKEOVER CODE. AND THEY STILL BELIEVE THAT THEY HAVE AN UNDERTAKING FROM YOU AND SUBSEQUENTLY MINISTERS TO USE BEST ENDEAVOURS TO REACH A SOLUTION BY THE END OF 1991.
2.
I AM A LITTLE PUZZLED BY PARAGRAPH 4 OF TUR. SURELY ONE OF JARDINES MAIN CONCERNS ALL ALONG HAS BEEN TO HAVE CERTAINTY
THAT THEY WOULD CEASE TO BE COVERED BY THE HONG KONG TAKEOVER
CODE AFTER A FINITE PERIOD FOLLOWING DELISTING FROM HONG KONG. THIS IS NOT A HYPOTHETICAL QUESTION FOR THEM, BUT A KEY POINT UNDERLYING THEIR WHOLE APPROACH AS I HAVE UNDERSTOOD IT.
IF SFC ARE NOW SAYING THAT ANY CHANGE TO THE TAKEOVER CODE TO GIVE JARDINES THIS CERTAINTY WILL BE DIFFICULT, TAKE A LONG TIME AND REQUIRE A FURTHER ROUND OF PUBLIC CONSULTATION, THEN JARDINES MAY WELL DECIDE THAT THE WHOLE EXERCISE HAS BEEN FRUITLESS. IN THAT CASE POWELL OR HENRY KESWICK MAY WELL TRY TO RE-ENGAGE MINISTERIAL INTEREST BEFORE JARDINES' JANUARY BOARD MEETING IN HONG KONG NO DOUBT ACCOMPANIED BY RENEWED THREATS
-
TO DELIST ALTOGETHER. 3. THIS MAY BE OVERLY PESSIMISTIC. BUT POWELL HAS LEFT ME IN NO DOUBT IN ALL MY RECENT CONTACTS WITH HIM THAT JARDINES WANT
TO GET THE TAKEOVER ISSUE WRAPPED UP BEFORE 1992 IS VERY OLD. THEY WERE PUTTING SOME STORE BY THEIR INFORMAL CONTACTS WITH OWEN. BUT I CANNOT SEE HOW A RESOLUTION IS POSSIBLE WITHOUT SOME CHANGE IN THE TAKEOVER CODE, HOWEVER ACHIEVED.
HURD
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