XN000022-1972-10-27 — Page 2

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Friday, October 27, 1972

Firstly that there must be reciprocity between Hong Kong and

the country of incorporation of the applicant bank, with regard to the

granting of banking licences; and secondly that only one office of the

applicant bank may be established in Hong Kong.

Regarding locally incorporated banks, the spokesman said that

the needs of the community seemed to be well served by the existing

licensed banks and their expanding network.

"Only in exceptional circumstances would applications be

considered for licences for new locally incorporated banks. The applicant

would have to demonstrate, in addition to satisfying the normal requirements,

that the new bank proposed would serve the interests of the community

and enhance the facilities available to the public," he said.

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