XN000022-1992-02-21 — Page 2

FRIDAY, FEBRUARY 21, 1992

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QUICK PAY-OUT TO DEPOSITORS MOST IMPORTANT

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THE FINANCIAL SECRETARY, MR. HAMISH MACLEOD SAID THIS (FRIDAY) EVENING THAT THE MOST IMPORTANT THING CONCERNING BCCHK WAS TO GET ON WITH REALISING THE ASSETS WHICH REMAIN AND GETTING THOSE INTO THE HANDS OF THE DEPOSITORS AS QUICKLY AS POSSIBLE.

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"I THINK THAT IS WHAT WILL HELP THE DEPOSITORS MOST NOW, MR. MACLEOD SAID WHEN ASKED AT THE SPRING DINNER OF THE FEDERATION OF HONG KONG INDUSTRIES TO COMMENT ON CALLS FOR AN INDEPENDENT INQUIRY ON THE CASE.

"THE EVENTS SURROUNDING THE CLOSURE OF THE BANK OF COURSE HAVE ALREADY BEEN WELL DESCRIBED. THERE WAS A REPORT ON THAT.

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HE POINTED OUT THAT THE REASON FOR THE BREAKDOWN OF NEGOTIATIONS WAS VERY CLEAR. 'ACTUALLY THERE IS NO MYSTERY ABOUT ᎢᎻᎪᎢ . IT WAS THE APPEARANCE OF THESE VERY LARGE AND VERY LATE CLAIMS WHICH UNFORTUNATELY JUST TIP THE BALANCE AGAINST THAT DEAL.

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"IT IS EXTREMELY DISAPPOINTING TO ALL THOSE CONCERNED. OF COURSE, PARTICULARLY TO THE DEPOSITORS, BUT ALSO THE CREDITORS.

"BUT,

BEING CONSTRUCTIVE, WHAT WE HAVE TO DO NOW AS I SAID IS GET ON AS FAST AS POSSIBLE," HE SAID, ADDING THAT HE WAS SURE IT WAS THE PROVISIONAL LIQUIDATOR, MR. NOEL GLEESON'S INTENTION "TO GET ON WITH IT, GET BACK TO THE COURT, GET A RULING AND START REALISING THOSE ASSETS.

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IN REPLY TO A QUESTION ON THE DEPOSIT PROTECTION SCHEME, MR. MACLEOD SAID THE BCC EVENT WAS CERTAINLY WHAT LED HIM TO REVIVE THAT IDEA.

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"AND CLEARLY IT WOULD MEAN THAT THERE WILL BE A LOT OF INTEREST IN THAT PROPOSAL, HE SAID, HOPING THAT THE GOVERNMENT WOULD RECEIVE A LOT OF COMMENTS ON IT.

"NOT JUST FROM THE BANKING SECTOR ALTHOUGH THEIR VIEWS ARE OBVIOUSLY OF GREAT INTEREST, BUT FROM MEMBERS OF THE PUBLIC AND ANYONE ELSE BECAUSE IT IS A GENUINE CONSULTATIVE PAPER.

"IT REALLY IS QUITE A DIFFICULT DECISION AND WE REALLY DO WANT TO EXPLORE WHETHER THERE IS SOME VERSION OF DEPOSIT PROTECTION WHICH WOULD SUIT HONG KONG.

"THE PROBLEMS WITH

PROTECTION SCHEMES ELSEWHERE ARE WELL- REHEARSED AND WELL-KNOWN. I DON'T DISPUTE THIS. BUT THE CHALLENGE IS TO SEF WHETHER WITH THE HELP OF THOSE COMMENTS WE CAN IDENTIFY ANY VERSION WHICH WOULD SUIT HONG KONG.

"I JUST DON'T KNOW WHETHER THAT IS POSSIBLE BUT I CERTAINLY WOULD BE LOOKING AT COMMENTS WITH GREAT INTEREST, MR. MACLEOD SAID.

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