TNAG-0683-FCO40-832-Political-aspects-of-administration-of-justice-in-Hong-Kong-1977 — Page 362

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

371

R

A.

348.

What depends whether Midland Bank would trust that person or not.

But Lossible?

4.

Yes.

ir. Gunston: Wo cross-examination.

G

ross-examined by r. bceats:

A.

570 Court: *.

A.

?

A.

دینا

A.

á.

Would you expect any draft that had been crodited to another account

in that manner to bear an endorsement on it or not?

The bank would usually require endorsement on the draft together

with a letter of indemnity.

In an application for draft for £2500 why was it necessary to split

that application to 5 drafts of £500 each?

force and if purchaser

Because at that time exchange control was in

purchased draft for more than 500 exchange approval would be

required.

What information is required for exchange control permission to be

obtained.

I am not sure as at that time I was not working in chat Department. When did the exchange control regulations cease to operate%

about 2 or 3 years 280.

Is it not the practice for separate application to be made for

each draft:

At that time it was probably explained to customer if he were to

get one draft he would have to pay more and he would be able to pay less if drafts were split as exchange rate would be lower.

hy would exchange be lower?

It is in resident sterling & and if it is external sterling we would

have to cover our position by buying US, and we have to purchase

US and we have to purchase US in free market.

Is it that drafts were split to avoid having to apply to exchange control for permission?

I am not sure.

571

Court adjourned to 10 a.m. 5/12/75.

(sd.)

Jarcia

District Judge

4/12/75

r

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