(b) E.C.G.D. are sorry their reply appeared
evasive. It was not their intention.
AB
stated above the intention is to take the
equity shareholders as risks in their Hong
Kong capacities. This means that if there was
a foreign takeover of Hong Kong the U.K.
lenders would remain creditors of these local
entities and could, if H.M.G. registered claims
in respect of U.K. assets and debts outstanding
to its nationals, enter claims for compensation.
in)
Here again there is nothing exceptional in the
treatment of the proposed business. Obviously
the claims must be pursued III as, say, were enemy
or debts
debts/in occupied territories after the last war.
It would clearly be impossible to proceed against
the shareholders if they were taken over or ceased
to exist in Hong Kong. (Consequently, unless they
are asking E.C.G.D. to insure them against being
taken over or ceasing to exist in Hong Kong we find
the persistent reiteration of the "political" issue
difficult to follow. We believe this to be the
source of continual confusion of issues now that
E.C.G.D. has taken the line that it will take
risk on them as Hong Kong entities.
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