-2-
CONFIDENTIAL AND PERSONAL
is sufficiently open and liquid that companies are able to adjust their holdings easily and quickly if they wish in the face of adverse developments. And all UK life insurers are required to meet a so called "resilience" test which means that they can accommodate a 25% fall in the UK stock market (let alone the Hong Kong one) without calling into question their ability to cover their liabilities to policy holders.
Yours sincerely,
John Headway
RJ MEADWAY
CC
Nigel Whitney Esq Lee Dobney Esq MD Pentecost Esq Stephen Wood Esq
HKD FCO
Bank of England ECGD
Treasury
Peter Sedgwick Esq Paul McIntyre Esq
Treasury
Treasury
Encls.
CONFIDENTIAL AND PERSONAL
dti
the department for Enterprise
Recycled Paper