TNAG-1031-FCO40-1281-Visits-by-Sir-Murray-MacLehose--Governor-of-Hong-Kong--to-th-1981 — Page 43

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PA TO 221,00% JUNE 81

TO PRIORITY HONG KONG

TELEGRAM NUMBER 503 OF 22 JUNE

ROYAL BANK OF SCOTLAND

1.

SECRETARY OF MONOPOLIES AND MERGERS COMMISSION HAS WRITTEN

TO ACTING GOVERNOR SAYING PROPOSED MERGER OF RSB WITH HSB RAISES

QUESTIONS ON WHICH COMMISSION WOULD BE GREATLY ASSISTED BY

EVIDENCE FROM HKG. COMMISSION NEEDS TO KNOW ABOUT STATUTORY

AND NON-STATUTORY ARRANGEMENTS FOR BANKING SUPERVISION AND

REGULATION IN RELATION TO BANKING OPERATIONS INSIDE AND OUTSIDE

HONG KONG, IN GENERAL, AND IN RELATION TO SB.

2. COMMISSION ALSO NEEDS YOUR ASSISTANCE ON LONG TERM PROSPECTS

FOR HSB IN HONG KONG, WHICH NATURALLY ARE LIMITED TO THOSE OF

FREE ENTERPRISE ECONOMY OF HONG KONG ITSELF.

3. COMMISSION WOULD BE GRATEFUL FOR MEMORANDUM FROM HKG ON

THESE MATTERS AND ANY OTHERS YOU CONSIDER MAY BE MATERIAL, HAVING REGARD TO SECTION 69 OF FAIR TRADING ACT. COMMISSION

ARE ALSO READY TO TAKE ORAL EVIDENCE ON THESE MATTERS FOR WHICH

13 JULY WOULD BE MOST CONVENIENT.

4. FOR FURTHER INFORMATION YOU SHOULD CONTACT MR E H WHITAKER ON

01-331-0111 EXT 2001.

5. COPY OF LETTER BY NEXT BAG.

CARRINGTON

NNNN

DISTRIBUTION

LIMITED

HKOD

PS

PS/LPS

PS/PJS

AR DONALD

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