SECRET
Avqus
(59
152466
MDHIAN 6036
!
Тор сору
MA3 101/1 Mr. Cox
mala
川に
SECRET
FM HONG KONG
TO IMMEDIATE F CO
TELNO 652
OF 030925Z MARCH 92
INFO IMMEDIATE PEKING, UKREP JLG HONG KONG
Mr Store lis
PERSONAL FOR RICKETTS, HKD FROM YAM
PEKING PERSONAL FOR AMBASSADOR
UKREP PERSONAL FOR GALSWORTHY
ич
OUR TELNO 492: CONFIDENTIAL FINANCIAL DIALOGUE: NOTES BY BANK OF CHINA
10
ISSUE OF BANK
YAM ATTENDED A LUNCH TODAY HOSTED BY ZHOU ZHENXING, GENERAL MANAGER, BANK OF CHINA CHONG KONG BRANCH). ZHOU SAID HE WOULD WISH TO TAKE UP OUR OFFER TO HOLD EXPERT DISCUSSION IN HONG KONG TO EXAMINE THE TECHNICAL ASPECTS OF THE QUESTION OF THE BANK OF CHINA BECOMING A NOTE-ISSUING BANK NEAR TO 1997 (PARA 11 OF TUR). HE SAID THEIR VERY PRELIMINARY THINKING WAS TO ISSUE A SMALL QUANTITY OF BANK NOTES IN AROUND 1994.
2. YAM SAID MAB OFFICIALS WOULD BE PLEASED TO MEET WITH EXPERTS FROM BANK OF CHINA TO GO THROUGH THE TECHNICAL ISSUES SUCH AS THE NOTE-ISSUER'S OBLIGATIONS, COSTS AND US DOLLAR FUNDING, LOGISTICS OF SAFE KEEPING, TRANSPORTATION AND DISTRIBUTION OF BANK NOTES, DESIGN, QUALITY AND QUANTITY OF BANK NOTES ETC. AT ZHOU'S REQUEST, YAM AGREED TO LET THE BANK OF CHINA HAVE A CHECK- LIST OF ISSUES WHICH NEEDED TO BE ADDRESSED AND CONVENE A WORKING SESSION TO GO THROUGH THEM LATER THIS MONTH.
3. YAM ALSO MADE THE POINT THAT, AS THE EXISTING LEGISLATION WOULD NEED TO BE AMENDED BEFORE THE BANK OF CHINA COULD BECOME A NOTE-ISSUER, IT WAS NECESSARY TO SECURE THE SUPPORT OF LEGCO AND THE COMMUNITY AT LARGE. ON THE QUANTITY OF BANK NOTES TO BE ISSUED, IT WOULD DEPEND ON CUSTOMERS DEMAND AND THE NUMBER OF BANKS RELYING ON THE BANK OF CHINA TO SUPPLY BANK NOTES. THIS WAS BECAUSE A NOTE ISSUING BANK WAS OBLIGED TO SUPPLY BANK NOTES ON DEMAND WITHOUT RESTRICTIONS TO CUSTOMERS AGAINST HONG KONG DOLLAR BALANCES AND TO OTHER BANKS AGAINST US DOLLARS.
WILSON
PAGE
SECRET
1
Page 15Page 16
YYYY
ΜΑΙΝ
20