XN000022-1991-08-10 — Page 3

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SATURDAY, AUGUST 10, 1991

"THE VAST MAJORITY OF BCCHK DEPOSITORS HAD IN MY VIEW AND WILL, 1 AM SURE, CONTINUE TO BEHAVE, IN A RESPONSIBLE, AND DIGNIFIED MANNER.

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BEHAVED, RESTRAINED

MR NENDICK EXPRESSED HIS SYMPATHY FOR THE PROBLEMS FACED BY BCCHK DEPOSITORS AND APPLAUDED THEIR CONSTRUCTIVE ATTITUDE TOWARDS EFFORTS TO FIND A MEANS OF RESURRECTING THE BANK.

HE EXPLAINED TO THE DELEGATION THE EFFORTS WHICH WERE UNDERWAY TO FIND A SOLUTION WHICH WOULD BE IN THEIR BEST INTEREST.

JOINT STATEMENT BY HSBC AND BANK OF CHINA

THE FOLLOWING IS ISSUED ON BEHALF OF THE HONGKONG AND SHANGHAI BANKING CORPORATION AND BANK OF CHINA:

THE HONGKONG AND SHANGHAI BANKING CORPORATION AND BANK OF CHINA WISH TO MAKE THE FOLLOWING COMMENTS IN VIEW OF EVIDENT PUBLIC CONCERN ABOUT THE HEALTH OF CERTAIN BANKS IN HONG KONG.

1. THE UNDERLYING STRENGTH OF HONG KONG'S BANKING INDUSTRY IS BEYOND DOUBT. IT IS WELL REGULATED AND STANDARDS OF SUPERVISION STAND FAVOURABLE COMPARISON WITH ANY OTHER OF THE WORLD'S MAJOR FINANCIAL CENTRES.

2. THE CURRENT WAVE OF RUMOURS CIRCULATING ABOUT CERTAIN BANKS

IN HONG KONG IS DEMONSTRABLY WITHOUT FOUNDATION.

3. HONGKONG BANK AND BANK OF CHINA HAVE NOT CUT THEIR TO THESE BANKS AND AND CONTINUE TO ASSIST THEM WITH CASH REQUIREMENTS.

LINES THEIR

JOINT POLICE/ICAC INVESTIGATION INTO BANK RUMOURS

A JOINT POLICE AND INDEPENDENT COMMISSION AGAINST CORRUPTION TEAM WILL LAUNCH AN INVESTIGATION INTO THE SOURCE OF AND MOTIVE FOR RUMOURS ABOUT INDIVIDUAL BANKS IN HONG KONG.

COMMENTING ON THE MOVE, THE COMMISSIONER OF POLICE, MR LI KWAN-HA, SAID THAT THE INVESTIGATION WOULD BE WIDE-RANGING AND AIMED AT DISCOVERING THE CULPABILITY OF THOSE RESPONSIBLE FOR THE RUMOURS.

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