XN000022-1991-07-10 — Page 5

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WEDNESDAY, JULY 10, 1991

SIR, WE BELIEVE THAT IN THIS AGREEMENT WE HAVE AN UNDERSTANDING WHICH MEETS OUR PRACTICAL NEED TO GET ON AND BUILD THIS

IT AIRPORT. PROVIDES US WITH CHINESE SUPPORT IN AN UNEQUIVOCAL WAY AND THAT CHINESE SUPPORT WILL, IN TURN INDUCE A HIGH DEGREE OF PRIVATE PARTICIPATION WHICH IS WHAT WE HAVE BEEN SEEKING ALL ALONG; AND THAT PRIVATE PARTICIPATION WILL REDUCE THE COST OF THIS AIRPORT FOR THE PEOPLE OF HONG KONG. AND WE ARE DELIGHTED WITH THAT CLAUSE IN THE AGREEMENT. IT PROVIDES US WITH A CERTAINTY TO PROCEED IN A WORKMANLIKE

WAY.

SIR, I THINK THE FEELING IN HONG KONG AS WE JUDGE IT AT THE MOMENT IS THAT A DARK CLOUD WHICH HAS HUNG OVER, NOT ONLY THE AIRPORT BUT ALSO OUR RELATIONSHIP WITH CHINA, HAS BEEN BLOWN AWAY. THERE IS AN UPLIFT IN THE MOOD OF THE PEOPLE HERE AND 1 THINK THAT'S RIGHT. I SUPPOSE IT'S TOO MUCH TO HOPE THAT THE SKIES WILL REMAIN TOTALLY BLUE OVER THE NEXT SIX YEARS, AND THERE WON'T BE THE ODD CLOUD. BUT I THINK THAT WE WOULD ALL AGREE THAT THE WEATHER FORECAST IS MUCH BETTER NOW THAN IT WAS A WEEK AGO. I THINK WE CAN LOOK FORWARD, OVER THE NEXT SIX YEARS,

TO A DEGREE OF CONFIDENCE IN OUR RELATIONSHIP WITH CHINA AND ABOVE ALL, GIVING HONG KONG THE AIRPORT IT RICHLY DESERVES.

SIR, I SUPPORT THE AMENDED MOTION.

FS EXPLAINS SUSPENSION OF BCCHK OPERATIONS

THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS TODAY (WEDNESDAY) EMPHASISED THAT THE DECISION TO KEEP THE BANK OF COMMERCE AND CREDIT HONG KONG LIMITED OPEN LAST SATURDAY (JULY 6) WAS TAKEN HAVING REGARD TO THE FACTS AVAILABLE ON FRIDAY (JULY 5) EVENING AND IN THE KNOWLEDGE THAT CLOSURE OF A BANK IS A DRASTIC STEP NOT TO BE TAKEN LIGHTLY.

C

"CLOSURE AT THAT STAGE WOULD ALSO HAVE UNDERMINED THE ATTEMPT TO GAIN THE SUPPORT OF THE GOVERNMENT OF ABU DHABI, SAID SIR PIERS IN A STATEMENT TO THE LEGISLATIVE COUNCIL ON THE SUSPENSION OF OPERATIONS OF THE BANK.

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"HOWEVER, WHEN IT BECAME CLEAR THAT SUPPORT WOULD NOT BE FORTHCOMING, THERE SEEMED NO POINT IN RISKING A DRAINING OF CASH FROM THE BANK WHICH WOULD IMPAIR THE ASSETS OF THE BANK AND COULD WELL HAVE RESULTED IN SOME DEPOSITORS BEING REPAID IN FULL TO THE DISADVANTAGE OF THE REST, HE SAID.

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THAT THE

THE FINANCIAL SECRETARY WAS RESPONDING TO THE SUGGESTION THE DECISION MADE ON MONDAY (JULY 8) TO SUSPEND THE OPERATIONS OF BANK WAS INCONSISTENT WITH THE EARLIER DECISION TO KEEP IT OPEN LAST SATURDAY (JULY 6).

/SIR PIERS