CONFIDENTIAL
機密
XCCI(77)2
· 4
would be a significant departure from policy.
Mr John Lok and the liquidator would be claimants for compensation under the Ordinance. There is a risk in this course of action that parties with a lawful interest in the property might take legal action to prevent the exercise of resumption powers in such an unusual manner.
Current Action
7
There is at present no certainty as to what the outcome of the proceedings for winding up the Hong Kong Resort Company will be; the position will remain unclear, at least until 3rd May 1977 when the petition will be heard. For the moment there is not thought to be any need for Government to take precipitate action which might pre-empt a satisfactory conclusion if matters are allowed to take their normal course. As a preliminary step the Secretary for the New Territories has replied to Mr John Lok's solicitors to the effect that waiver of the undertaking to pay the premium in a lump sum will require reference to the Governor in Council, and that the Government will require to be assured as to any purchaser's financial ability and development capability.
Other Factors
8
The Moscow Narodny Bank, which is a merchant bank of long standing, appears to have no wish to be involved in the development of the land at Discovery Bay. The bank is said to be a major creditor of Mr Edward Wong Wing-cheung (in his personal capacity). Mr Wong, through other companies and family links, controls the Hong Kong Resort Company. It is also said that the shares of Mr Wong and his group in the Company are pledged to the bank as security against loans. The bank could thus gain control of the Company if it chose to do so. However, warning of such intention would be given by an application by the bank to the Supreme Court for the validation of any transfer of the shares. Both the bank and its Hong Kong solicitors have indicated that it is not interested in taking control of the Discovery Bay land or of the project; its object is to strengthen its security by registering the shares in the Company in the name of the bank's nominee and in recover- ing its money from Mr Wong. The bank should, in any case, be able to recover some of the debt owed to it by Mr Wong, whether events are allowed to take their course or any of the courses of action discussed in paragraph 6 is followed.
C.S. 166
CONFIDENTIAL
機密
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