XN000022-1996-01-22 — Page 2

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JLG expert talks on the Hong Kong Handover Ceremony

The second meeting between experts of the Joint Liaison Group on the Hong Kong Handover Ceremony will take place on January 23, 1996. The British side will be led by British Senior Representative. Mr Hugh Davies. The Chinese side will be led by Chinese Senior Representative. Mr Zhao Jihua. They will be assisted by experts from the two sides.

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Government to acquire De La Rue's banknote printing plant

The Hong Kong Monetary Authority announced today (Monday) that agreement has been reached with De La Rue plc for the Government through the Exchange Fund to purchase De La Rue's banknote printing plant in Hong Kong. The consideration for the sale is $255 million. It is expected that completion of the sale will occur in early April 1996.

The Hong Kong printing plant was established by De La Rue in 1984. Since that time the plant has printed Hong Kong dollar currency notes for the Hongkong and Shanghai Banking Corporation, the Standard Chartered Bank and, more recently, the Bank of China. In addition, the plant has produced notes denominated in other currencies for export.

The sale offers the De La Rue Group the opportunity to rationalise its security printing activities in the South East Asian region. In signing the agreement the Financial Secretary, Mr Donald Tsang, said: "The acquisition of the printing plant in Hong Kong will enable the Hong Kong Government to have closer involvement in the production of Hong Kong dollar currency notes. The new operation will be known as 'Hong Kong Note Printing Limited'. This development is in line with the responsibilities conferred upon the Hong Kong Government under the Legal Tender Notes Issue Ordinance and the Basic Law."

De La Rue will enter into a Technical Agreement to provide technical advice and support on the production of currency notes by the Hong Kong plant. The Hong Kong Monetary Authority and De La Rue are dedicated to ensuring the continuity, quality and integrity of supply of Hong Kong dollar currency notes following the completion of the sale of the plant.

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