SECRET COMMERCIAL IN CONFIDENCE
116236 MDHOAN 0354
SECRET
COMMERCIAL IN CONFIDENCE
FM FCO
TO DESKBY 27O8OOZ HONG KONG
TELNO 315
OF 261145Z FEBRUARY 92
INFO IMMEDIATE PEKING, UKREP JLG HONG KONG
STRICTLY PERSONAL FOR GOVERNOR FROM BURNS, AUSS
PEKING PERSONAL FOR AMBASSADOR
UKREP JLG PERSONAL FOR GALSWORTHY
MIPT: GALLEY/QUARTERDECK: SPEAKING NOTE
1. FOLLOWING IS THE AGREED SPEAKING NOTE.
2. BEGINS. I KNOW THAT YOU ARE IN DISCUSSION WITH THE BANK OF ENGLAND. ALTHOUGH I AM NOT AWARE OF THE DETAILS, I UNDERSTAND THAT THEY HAVE ASKED FURTHER QUESTIONS, PARTICULARLY ON GALLEY'S EXPOSURE TO HONG KONG RISK. THEY WILL NEED FULL ANSWERS TO THOSE QUESTIONS BEFORE THEY CAN TAKE A VIEW ON WHETHER OR NOT THEY COULD APPROVE YOUR PROPOSAL FOR THE GALLEY HOLDING COMPANY TO ACQUIRE QUARTERDECK AND BECOME SUBJECT TO BANK OF ENGLAND SUPERVISION.
3. IT IS NOT THEREFORE A QUESTION OF THE BANK OF ENGLAND GIVING YOU A RED LIGHT. BUT THEY WILL NEED TIME TO STUDY AND DISCUSS THE ADDITIONAL DATA WHICH YOU ARE PROVIDING.
ONLY WHEN THAT PROCESS IS COMPLETED CAN THE BANK, AS THE Y APPROPRIATE REGULATORY AUTHORITY, REACH ITS DECISION.
4. I KNOW THAT YOU ARE CONCERNED ABOUT A COMPETING BID FOR QUARTERDECK. I AM ADVISED THAT ANY INDICATIVE BID THAT MAY BE MADE BY ANOTHER UK BANK NEED NOT BE PUBLIC AND WOULD ALSO TAKE TIME TO BE CONSIDERED BY THE UK AUTHORITIES CONCERNED. IN ADDITION TO THE BANK OF ENGLAND, THESE WOULD BE THE DIRECTOR' GENERAL OF FAIR TRADING, WHO WOULD HAVE TO ADVISE THE SECRETARY OF STATE FOR TRADE AND INDUSTRY ON WHETHER A REFERENCE SHOULD BE MADE TO THE MONOPOLIES AND MERGERS COMMISSION: THE SECRETARY OF STATE FOR TRADE AND INDUSTRY, WHO WOULD HAVE TO TAKE THE 2004 DECISION ON A REFERENCE IN THE LIGHT OF THAT ADVICE: AND, IF A REFERENCE WERE TO BE MADE, THE MONOPOLIES AND MERGERS COMMISSION ITSELF, WHOSE ENQUIRY WOULD BE EXPECTED TO TAKE AROUND THREE
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*IK30 SECRET COMMERCIAL IN CONFIDENCE
Feo | Hong
Kong
telno 315
Speaking
Note