CDEW: LMP 0730
C D Elston
Senior Adviser, Asia & Australasia
International Divisions
Telephone:
Facsimile:
071-601 4265
071-601 5561
A
MED.
22/4.
©
BANK OF ENGLAND
LONDON EC2R 8AH
20 September 1993
NC G Whitney Esq
Hong Kong Department
Foreign and Commonwealth Office
Whitehall
SW1A 2AF
Dear Nigil,
BRITISH BANK OF MIDDLE EAST (BBME)
(4)
HKB 102/3
21 SEP 1993
This is in fact
Thank you for your letter of 6 September.
something my colleagues in Banking Supervision Division (BSD) have been dealing with, and the comments below represent their views.
BSD have been discussing the position of BBME with the HSBC group, but it is not a Bank of England recommendation that lies behind
HSBC's question about a Jersey charter. The correct position is
that, for regulatory reasons, BSD require the Head Office of BBME
to be relocated to London but, because of tax implications, HSBC
have requested some time to explore other alternatives, one of which is reincorporation in, and Head Office relocation to, Jersey.
BSD await a definite proposal, but would need to consider this carefully in the light of their role as consolidated supervisors of the HSBC group and their consequent concern about the future
location and regulation of BBME.
HSBC's second question should therefore be seen as part of the
necessary preliminary research for framing a proposal to BSD. I
hope that this is helpful background for the Privy Council Office,
but, if they would like to discus the matter further, my BSD