XN000022-1990-12-17 — Page 2

1

PROPOSED REORGANISATION OF HONGKONG AND SHANGHAI BANKING CORPORATION

* * *

COMMENTING ON

THE

(MONDAY) OF ITS INTENTIONS SIR PIERS JACOBS, SAID:

HONG KONG BANK'S

ANNOUNCEMENT TODAY

TO REORGANISE, THE FINANCIAL SECRETARY,

"THE PROPOSED REORGANISATION IS A COMMERCIAL RESPONSE TO COMMERCIAL PROBLEMS IDENTIFIED BY THE BANK AND IS DESIGNED TO ASSIST IT TO CONTINUE TO DEVELOP INTERNATIONALLY. THE HONG KONG GOVERNMENT WAS INFORMED OF THE PROPOSED REORGANISATION. THE SCHEME DOES NOT INVOLVE THE HONGKONG BANK MOVING ITS HEAD OFFICE OR DOMICILE OUT OF HONG KONG. THE OWNERSHIP AND MANAGEMENT OF THE GROUP WILL NOT BE AFFECTED. WE ARE SATISFIED THAT THE REORGANISATION WILL NOT AFFECT THE BANK'S OPERATIONS IN HONG KONG. THE GOVERNMENT THEREFORE TOLD THE HSBC THAT IT SUPPORTED THE PROPOSED REORGANISATION."

THE FINANCIAL SECRETARY SAID HE DID NOT THINK THAT THE REORGANISATION WOULD UNDERMINE CONFIDENCE IN HONG KONG.

"ON THE CONTRARY, THE BANK HAVE MADE CLEAR THAT ITS HEAD OFFICE AND THAT OF ITS NEW HOLDING COMPANY WILL REMAIN IN HONG KONG, THAT ITS SHAREHOLDERS' INTERESTS WILL NOT BE DILUTED, AND THAT THE GROUP WILL REMAIN INTACT, HE SAID.

"THE NEW STRUCTURE WILL ASSURE INTERNATIONAL CONFIDENCE IN HSBC, AND THEREBY HELP TO ASSURE THAT HONG KONG REMAINS A THRIVING INTERNATIONAL FINANCIAL CENTRE, HE ADDED.

||

SIR PIERS SAID THE HSBC HAD ASSURED THE GOVERNMENT THAT IT INTENDED ΤΟ CONTINUE ITS ROLE AS A NOTE ISSUING BANK, AND AS MANAGEMENT BANK OF THE CLEARING HOUSE.

BRITISH DEPENDANTS TO LEAVE GULF AREA: FCO ADVISES

*

TIME)

BRITISH SAUDI ARABIA, AND

THE FOREIGN AND COMMONWEALTH OFFICE ISSUED THE FOLLOWING ADVICE AT 2030 (LOCAL

TODAY (MONDAY) FOR

NATIONALS RESIDENT IN BAHRAIN, QATAR, THE EASTERN REGION OF THE CITIES OF RIYADH AND TABUK.

SECURITY

"FOLLOWING THE ADOPTION OF UN SECURITY COUNCIL RESOLUTION

678. AREA WELL BEFORE THE BRITISH DEPENDANTS ARE ADVISED TO LEAVE THE DEADLINE OF JANUARY 15 WHICH HAS BEEN SET BY THE UN

COUNCIL

WITHDRAWAL FOR THE

OF IRAQ FROM KUWAIT. THIS IS A COMMONSENSE PRECAUTION, AND DOES NOT IMPLY ANY WORSENING OF THE SITUATION LAST FEW DAYS.

IN THE

SHOULD

NOT

THE

HOW

ADVICE TO VISITORS REMAINS UNCHANGED. TOURISTS VISIT THE AREA, BUT THOSE WHO HAVE NECESSARY BUSINESS TO CONDUCT

WITH THEY SHOULD REGISTER THEIR ARRIVAL SHOULD NOT BE DETERRED.

THE MISSION NEAREST BRITISH DIPLOMATIC MISSION, AND SHOULD TELL LONG THEY EXPECT TO STAY."

THE HONG KONG GOVERNMENT ADVISES BRITISH NATIONALS FROM HONG KONG AND OTHER HONG KONG RESIDENTS TO MAKE

ARRANGEMENTS FOR

THEIR DEPENDANTS.

SIMILAR

0

-

+

12